Quarterly Report • Jun 10, 2015
Quarterly Report
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| SIGNIFICANT GROUP FIGURES AND RESULT INDICATORS 3 |
|---|
| SUMMARY OF OPERATIONS IN THE FIRST QUARTER OF 2015 5 |
| CORPORATE BODIES 6 |
| EXPRIVIA: ONE STEP AHEAD 8 |
| THE EXPRIVIA BUSINESS MODEL13 |
| MARKETS14 |
| SOLUTIONS19 |
| SKILLS 20 |
| PERFORMANCE OF EXPRIVIA GROUP RESULTS 21 |
| SIGNIFICANT EVENTS IN THE FIRST QUARTER OF 2015 26 |
| EVENTS AFTER 31 MARCH 201527 |
| STAFF AND TURNOVER28 |
| INTER-COMPANY RELATIONS 30 |
| RELATIONS WITH ASSOCIATES AND AFFILIATES30 |
| GROUP RELATIONS WITH PARENT COMPANIES31 |
| BUSINESS OUTLOOK 32 |
| 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 reported in the balance sheet, compared to the figures at 31 March 2015, 31 March 2014 and 31 December 2014.
| 31.03.2015 | 31.03.2014 | 31.12.2014 | |
|---|---|---|---|
| Total production revenues | 34,914,502 | 31,436,218 | 147,244,871 |
| net proceeds and variation to work in progress to order | 33,646,223 | 30,116,191 | 141,649,213 |
| increase to assets for internal work | 318,808 | 378,594 | 1,395,638 |
| other proceeds and contributions | 949,471 | 941,433 | 4,200,020 |
| Difference between costs and production proceeds (EBITDA) | 2,006,899 | 1,799,740 | 14,452,039 |
| % on production proceeds | 5.7% | 5.7% | 9.8% |
| Net operating result (EBIT) | 871,325 | 902,514 | 9,864,333 |
| % on production proceeds | 2.5% | 2.9% | 6.7% |
| Net result | (271, 320) | (409, 317) | 3,037,163 |
| Group net equity | 71,007,665 | 68,854,178 | 71,766,104 |
| Total assets | 191,893,126 | 184,725,750 | 193,925,754 |
| Capital stock | 26,100,219 | 26,342,871 | 26,410,290 |
| Net working capital (1) | 23,608,635 | 23,686,545 | 24,650,290 |
| Cash flow (2) | 1,608,215 | 6,858,610 | 13,838,345 |
| Fixed capital (3) | 91,114,241 | 92,390,089 | 91,666,633 |
| Investment | (464, 022) | 1,495,849 | 3,516,259 |
| Cash resources/bonds (a) | 11,796,991 | 10,813,648 | 14,224,271 |
| Short-term financial debts (b) | (28, 712, 532) | (32,603,878) | (31, 193, 836) |
| Medium-/long-term financial debts (c) | (11,531,380) | (9,019,175) | (12,764,130) |
| Net financial position (4) | (28, 446, 921) | (30,809,405) | (29, 733, 695) |
(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 and write-downs
(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 2015, compared with the same period of the previous year.
For the calculation of ROE and ROI, it was decided to adopt annual "rolling" logic using as a reference for net profit and operating income the periods from 1 April 2014 - 31 March 2015 for figures at 31 March 2015 and 1 April 2013 - 31 March 2014 for figures at 31 March 2014.
| Exprivia Group | 31/03/2015 | 31/03/2014 |
|---|---|---|
| Index ROE (Net income / equity capital) | 4.47% | 3.46% |
| Index ROI (EBIT / Net Capital Invested) | 9.69% | 5.84% |
| Index ROS (EBIT / Revenues from sales and services, net of changes in inventories of raw materials and finished products) |
2.60% | 2.97% |
| Financial charges / Net profit | $-2.514$ | $-1.814$ |
The table below shows the main capital and financial indicators of the Group as at 31 March 2015, 31 March 2014 and 31 December 2014.
| Exprivia Group | 31/03/2015 | 31/03/2014 | 31/12/2014 |
|---|---|---|---|
| Net Financial Debt / Equity Capital | 0.40 | 0.45 | 0.41 |
| Debt ratio (Total Liabilities / Equity Capital) | 2.70 | 2.68 | 2.70 |
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 2015, compared with the same period of the previous year.
| Exprivia Group (value in $K \in \mathcal{E}$ ) | 31.03.2015 31.03.2014 Variazioni % | ||
|---|---|---|---|
| Revenues | 34,915 | 31,436 | 11.07% |
| Net revenues | 33,646 | 30,116 | 11.72% |
| EBITDA | 2,007 | 1,800 | 11.50% |
| EBIT | 871 | 903 | $-3.54%$ |
| Pre-tax result | 274 | 195 | 40.51% |
| Result | $-271$ | $-409$ | 33.74% |
The Exprivia Group closed the first quarter of 2015 with revenues of euro 34.9 million, which is a significant improvement (+11.1%) over the figure recorded for the same period in the previous year (euro 31.4 million). Consolidated net revenues amounted to euro 33.6 million with an 11.7% rise compared to the same period in the previous financial year (euro 30.1 million).
Consolidated EBITDA amounted to euro 2.0 million (1.8 million in 2014) equal to 5.7 % of revenues. Consolidated EBIT amounted to euro 0.9 million, which is in line with the figures as at 31 March 2014 (euro 0.9 million) equal to 2.5% of revenues, despite the increase in amortisation for higher investments made starting in Q2 2014. The result before tax amounted to euro 0.3 million equal to 0.8% of the value of production compared with euro 0.2 million as at 31 March 2014.
The Net Financial Position as at 31 March 2015 was -28.4 million compared to -29.7 as at 31 December 2014. The Group's Net Equity as at 31 March 2015 amounted to 71.0 million compared to euro 71.8 million as at 31 December 2014.
| Exprivia Group (value in K $\epsilon$ ) | 31.03.2015 31.03.2014 | 31.12.2014 | |
|---|---|---|---|
| Group Net Worth | 71.008 | 68.854 | 71,766 |
| Net Financial Position | (28, 447) | (30, 809) | (29,734) |
As at 31 March 2015 the board of directors, whose term of office expires when the year-end 2016 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 |
| Vito Albino | Independent Director (*) |
Non Executive |
Bari 10/09/1957 | M | 12 March 2013 |
| Angela Stefania Bergantino |
Independent Director (*) |
Non Executive |
Messina 24/09/1970 | F | 23 April 2014 |
| Rosa Daloiso | Director | Non Executive |
Margherita di Savoia (FG) 5/04/1966 |
F | 31 March 2008 |
| Mario Ferrario | Director | Non Executive |
Padua 05/02/1946 | M | 23 April 2014 |
| Marco Forneris | Director | Non Executive |
Caluso (TO) 19/02/1951 | M | 28 April 2011 |
| 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 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. (cf. Corporate Governance).
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As at 31 March 2015 the Board of Statutory Auditors, whose term of office will end when the year-end 2016 financial statements are approved, was composed as follows:
| Member | Office | Place and Date of Birth | Gender |
|---|---|---|---|
| Ignazio Pellecchia | Chairman | Bari 28/06/1968 | M |
| Anna Lucia Muserra | Regular Auditor | Genoa 21/09/1962 | F |
| Gaetano Samarelli | Regular Auditor | Molfetta (BA) 07/12/1945 | M |
| Valeria Cervellera | Substitute Auditor | Bari 07/08/1969 | F |
| Mauro Ferrante | Substitute Auditor | Bisceglie (BA) 01/11/1964 | M |
On 23 April 2014, the shareholders' meeting appointed PricewaterhouseCoopers SpA as independent auditors for the years 2014 – 2022.
In Italy Exprivia is a leading international company in process consultancy, technological services and Information Technology solutions.
Our constant investments in research and development make us stand out as a benchmark for the creation of innovative solutions to meet the increasingly sophisticated demands of our customers.
The Company has been listed on the Italian stock exchange since 2000 and in the STAR MTA segment since October 2007. Exprivia currently employs a team of over 1800 people distributed between its headquarters in Molfetta (BA), branches in Italy (Milan, Rome, Piacenza, Trento, Vicenza, Genoa, and Palermo) and abroad (Spain, USA, Mexico, Guatemala, Peru, Brazil and China).
Exprivia has developed an integrated management system that conforms to UNI EN ISO 9001, UNI EN ISO 13485, UNI CEI ISO/IEC 20000-1 and UNI CEI ISO/IEC 27001 for the effective management of company processes, guaranteeing the greatest transparency inside and outside the company.
Exprivia Projects Srl is 100% owned by Exprivia. It is based in Rome and has euro 242,000.00 share capital (fully paid-up). It is specialised in designing and managing services and infrastructure for Call Centres, Contact Centres and Helpdesk services.
Exprivia Healthcare IT Srl is 100% owned by Exprivia. It is based in Trento and has euro 1,982,190.00 share capital (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 Enterprise Consulting Srl is 100% owned by Exprivia. It is based in Piacenza and has euro 1,500,000.00 share capital (fully paid-up). It has acquired in-depth experience in a wide variety of IT segments. In recent years it has focused on professional services for SAP applications especially in the field of Industry and Oil & Gas, where a significant amount of business in reselling third-party software licences has been developed as well.
Exprivia Digital Financial Solution Srl is 100% owned by Exprivia. It is based in Milan and its share capital amounts to euro 1,586,919.00 (fully paid-up). It is the leading company in outsourcing IT, legal and administrative services for factoring firms in Italy and handles the various phases of the lifecycle of receivables using proprietary solutions.
Exprivia Telco & Media Srl, formerly Devoteam Ausytem, fully owned by Exprivia, with head offices in Milan and share capital of euro 1,200,000.00, it has operated in the Italian market for over 15 years as a company of reference in the Telecommunications and Media sector.
Spegea S.C.a r.l. is 60% owned by Exprivia and has euro 125,000.00 share capital (fully paid-up). 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.
Consorzio Exprivia Scarl, 70% is controlled by Exprivia and the remaining 30% is controlled by other companies in the Group, which in turn are fully owned by the holding company. The object of this Consortium is to facilitate the participation of Group companies in public tenders for developing projects or providing services.
Profesionales de Sistemas Aplicaciones y Productos S.L. (ProSap), a Spanish company in operation since 2002, also through its subsidiaries in Mexico (ProSAP SA de CV), Guatemala (ProSAP Centroamerica S.A.), Peru (ProSAP Perù SAC) and the USA (ProSAP Consulting LLC), it provides professional services in the SAP environment and services for systems integration and application management for important medium and large customers. Exprivia SpA controls the company with a 51.12% share.
Exprivia S.l., incorporated in April 2008 in Madrid, is dedicated to the development of web portals and information systems for the healthcare market in Spain and Latin America. Exprivia controls the company with a 100% share
Exprivia do Brasil Serviços de Informatica Ltda, a Brazilian company specialised in IT Security solutions that operates with about 16 employees at its headquarters in Sao Paulo. Exprivia SpA controls the company with a 52.22% share while the company Simest it 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 to 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.
ACS S.p.A., 16.21% held by Exprivia, covers a significant role on an international scale in the sector of software and hardware for the acquisition, management and interpretation of satellite imagery. The company has offices in Rome and Matera.
Software Engineering Research & Practices S.r.l, 6% held by Exprivia S.p.A., 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.
Società cons. a r.l. Pugliatech was formed to participate in the fulfilment of the programme agreement required by the 2000-2006 POR Puglia notice.
Società cons. a r.l. Conca Barese was formed to manage the Conca Barese Land Agreement.
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.
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 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.
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.
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 to optimise 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.
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.
The Exprivia Group is now one of the leading IT companies in Italy specialised in the design, development and integration of innovative software solutions and services. It boasts a wide range of skills acquired in over two decades of operations in its core market.
Its constant attention to expansion and differentiation is demonstrated by its over 2,000 customers, who every day receive the support of our experts with an extensive collection of proprietary solutions and our partners, together with the high-level technological skills that make them unique.
The Group's business model is distinguished by market segmentation, as follows:
Utilities companies are going through a complex yet historic period characterised by profound changes related to the liberalisation process and company mergers, which subject them to increasingly stiff competition.
The Public Utility Services sector, which also includes energy, postal, environmental, water and transport services, has undergone significant transformations in the last ten years, which are related to the conversion into a joint stock company, the definition of service contracts to fulfil the public service obligations, the introduction of service charters for consumer protection, the regulation by independent authorities or the ministers in charge, the laying of the legislative and regulatory basis to start competition or the regulation of the regime for the concession of natural monopolies.
In this context, certain factors become particularly important such as those related to the separation of infrastructure management from services, management efficiency and profit control, service level measurement, etc.
Exprivia supports its customers with solutions for the development and management of transversal and core processes. In particular, it proposes solutions that aim to ensure integrated management of administrative processes, operational process efficiency, and quality of services to customers, process performance and service levels.
The customers of banks and financial institutions are increasingly more demanding and require non-stop availability wherever needed and with any device. The experience of Exprivia comes from over 25 years of partnerships with leading credit groups and institutions in Italy and abroad.
With more than 100 customers, Exprivia has searched and developed innovative technological solutions to control strategic processes, particularly in the credit, risk control and financial market field.
The financial market is an ever changing sector and requires companies to constantly revise their business models. Exprivia's experience in the Capital Markets means that it can provide each of its customers with innovative solutions that are customised to keep up with the continuously evolving market. Thanks to the skills gained from the Murex technological platform and the experience gathered together with major financial organisations, Exprivia is able to propose specific services and solutions for all the processes that are characteristic of the financial market.
For 25 years Exprivia has been present in banking, leasing and factoring institutions of all sizes spread across Europe. The proprietary solutions support the various phases of the credit life cycle from an operational and decision-making standpoint: from preliminary procedures to periodic monitoring and management of disputes.
Exprivia works side-by-side with its customers to give support in operational management of IT systems and provided on-site or through nearshoring. As regards operating management, Exprivia proposes comprehensive IT infrastructure optimisation services ranging from project consultancy to architectural designs and their implementation.
Compliance, reputation and operational risk: these are the essential problems that banks and all companies with systems accessed by a large number of users are trying to solve with "technological security tools". The value of security for banks is led driven by several drivers that converge into a single need: make infrastructure, access and processes secure.
In the IT sector Exprivia supports its customers with its extensive security-related technological expertise combined with years of experience regarding the characteristic issues of the banking market.
As support for marketing, sales and customer service Exprivia has devised web 2.0 based services, solutions to manage unstructured information and mobile payment products.
Patient treatment has always been the focus of all the services provided by the healthcare system.
Starting from our focus on the patients and the continuous improvement of the healthcare services destined for them, Exprivia has devised its offer for the healthcare market with innovative solutions for governance and control at regional level, local care provided by local healthcare providers (ASL) and hospital care.
500 healthcare institutions and hospitals, for a total 20 million patients receiving treatment: this is the result of the daily commitment ensured by a team of 350 professionals and over thirty years of experience in the healthcare industry.
Exprivia developed e4cure for the healthcare market, a suite of solutions that makes it possible to link under a single circuit all regional healthcare providers, from healthcare institutions to family physicians, to certified private facilities, also offering online services. e4cure meets all the needs of the healthcare market: such as governance and control at a regional level (Regions, Regional Agencies), local care provided by local healthcare providers (ASL) and hospital treatment (hospitals, clinics, public and private healthcare facilities).
In the Oil & Gas industry, Exprivia's experience derives from 10 years of partnerships with leading multinationals in the sector, allowing it to offer innovative solutions and services that make companies competitive by optimising the sector-specific processes.
Exprivia has consolidated its position over the years through its ability to combine its knowledge of the best practices in the IT sector with specific skills related to processes for the extraction, transportation, storage, refining and distribution of oil and natural gas.
The extensive knowledge in the processes of the companies operating in the oil and natural gas markets, together with the knowledge of innovative technological platforms, enable the group to be a partner of reference for core process projects (Work & Asset Management, Engineering & Automation ) as well as non-core projects (AFC, HR, dematerialisation and storage).
The value of IT comes out only if the tool and solutions are perfectly integrated to meet the specific needs of each industry: size, production chain and distribution models. Exprivia supports large and small sized companies with flexible and modular technologies designed for each individual company requirement and for each of its production and organisational process.
The partnership with SAP set up over ten years ago makes Exprivia an important partner in Italy and on an international scale, also due to the 500 professionals certified and specialised in ERP and logistics.
The widespread presence in Italy means that Exprivia can assist companies all over the country, also thanks to the innovative models for the provisions of services in nearshoring mode.
Thanks to its consolidated expertise in the SAP sector, Exprivia is able to create integration projects through ERP, CRM, SCM, Business Intelligence and Analytics application and middleware platforms.
As part of the Manufacturing Execution System (MES) solutions are developed based on Simatic IT, Siemens Industry Software and with Service Oriented architectures.
In the retail and wholesale segment Exprivia provides innovative solutions for any type of process (from back office to points of sale) for any type of reporting and analysis requirement and for any type of activity, whether BtB or BtC.
The history of Exprivia is full of Best Practices that have enabled it to create implementation models for the specific requirements of any market: Automotive, Aerospace, Consumer Products, Chemical & Pharma, Engineering and Construction, Food, Discrete and Process Manufacturing.
Also small companies can enjoy all the benefits of IT that large enterprises have with ad hoc solutions and costs for smaller companies. With this spirit Exprivia developed tools designed for SMEs with advanced features that cover all the main core processes of the company such as finance, sales and logistics. IT management, service desk, server and desktop virtualisation services are also available to meet infrastructure needs.
In the application management field, the large number of factories spread out all over Italy and abroad enables Exprivia to propose structured offers while guaranteeing high service levels wherever needed.
The Telecommunications sector is characterised by the constant search for value-added services to provide to customers together with the need to offer competitive prices to maintain market share.
In the Telecommunications sector, Exprivia provides solutions for the key processes of mobile and landline network operators and a complete and innovative range of systems integration for both business support and operational support.
Through its centre of excellence in the field of Network Transformation, OSS and Provisioning Systems Exprivia provides support to its customers in the telecommunications market for the following processes:
In the centre of excellence for Connected Device applications Exprivia developed M2M platforms and IVR applications, Unified Communication Systems, mobile eApplications for Smartphones and Tablets.
For the Media market we work with companies to provide them with Digital Transformation solutions by defining an integrated strategy that comprises content management, Web 2.0 applications, search engine optimisation and social media building synergy between content, user profile and information programming.
We also offer solutions for delivering video over cellular, point-to-point or in broadcasting making it possible for remote users to share videos of unexpected or planned events using standard mobile devices.
In addition to this are the development and testing activities for interactive applications on set-top boxes to assess functional features and any problems with back-end integration.
The Public Administration market is represented by IT solutions that streamline the processes of organisations to increase the quality and speed of services provided to citizens and businesses. The recent modernisation policy of Central Public Administration (CPA) has generated a great demand for operating tools and models able to ensure significant improvement in services and substantial rationalisation of public spending.
Reconciling optimisation of spending with service quality is a goal the Public Administration can pursue only by using more innovative technologies that make it possible to raise efficiency in providing those services.
In this context Exprivia has developed increasingly effective solutions to computerise processes, ensure flexible and efficient management and at the same time improve and intensify communications between administrations, citizens and businesses.
The decade-long presence in central and local Public Administration ensures customers of the Group receive the benefit of the process skill and know-how in all aspects of Public Administration.
The reforms in Public Administration spurred the adoption of innovative IT technologies to quickly achieve tangible results in terms of spending optimisation and process engineering. To achieve these objectives the Group supports national and regional organisations on a daily basis, proposing the most suitable solutions to obtain efficient processes and reduce their expenditure.
For each area concerned by changes Exprivia offers solutions and services created with innovative technologies, in complete compliance with the strategic guidelines defined by the competent institutional bodies.
The range is divided into design, creation and management services in the following fields:
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Exprivia has always looked towards the future in a constant search for technologies that anticipate market trends so that customers can be provided with solutions and services that actually improve their business processes.
This strategic vision, together with the group's knowledge of specific market needs, the ability to manage complex projects, and an internationally renowned research and development department have enabled us to develop proprietary technological platforms and select the best third-party solutions, in particular:
Exprivia presents itself on the market with a group of high-quality services and competitive pricing where the added value is expressed by careful planning of the right mix of professional profiles, technological skills and in-depth knowledge of specific markets.
In order to ensure high-quality and competitive services the offering is centred on Competence Centres specialised in specific areas (Murex, Tibco, SAP, Java, proprietary applications, etc.), which gather company and individual experiences so as to always guarantee the know-how and experience most suitable to meet the delivery needs of the customer.
The group has a team of highly-skilled experts specialised in several different technological areas:
The performance of revenue by business segment in the first quarter of 2015 improved by 11.7% compared to the same period in the previous year.
Details of revenue relating to 31 March 2015 are shown below, compared with the figures for the same period of the previous year, broken down by business segment (in K €).
| Exprivia Group (value in $K \in \Sigma$ ) | 31.03.2015 | 31.03.2014 | Variations % |
|---|---|---|---|
| Banks, Finance and Insurance | 5,551 | 5,523 | 1% |
| Energy and Utilities | 6,301 | 7,882 | $-20%$ |
| Industry | 2,684 | 2,777 | $-3%$ |
| Oil and Gas | 3,636 | 3,202 | 14% |
| Telcom and Media | 4,344 | 114 | 3711% |
| Health and Healthcare | 5,571 | 5,410 | 3% |
| Defence, Aerospace and Public Sector | 2,576 | 1,897 | 36% |
| International Business | 2,540 | 2,770 | -8% |
| Other | 442 | 541 | $-18%$ |
| Total | 33,646 | 30,116 | 11.72% |
Details of revenue relating to 31 March 2014 are shown below, compared with the figures for the same period of the previous year, broken down by business segment (in K €).
| Exprivia Group (value in $K \in \Sigma$ ) | 31.03.2015 | 31.03.2014 | Variations% |
|---|---|---|---|
| Projects and Services | 28,911 | 24,349 | 19% |
| Maintenance | 3,326 | 3,044 | 9% |
| HW/ SW third parties | 847 | 1,935 | $-56%$ |
| Own licences | 121 | 248 | $-51%$ |
| Other | 441 | 540 | $-18%$ |
| Total | 33,646 | 30,116 | 11.72% |
Details of revenue relating to 31 March 2015 are shown below, compared with the figures as at 31 March 2014, broken down by private and public sector (in K €).
| Exprivia Group (value in $K \in \Sigma$ ) | 31.03.2015 | Effect % 31.03.2014 | Effect% Variations% | ||
|---|---|---|---|---|---|
| PRIVATE | 26,000 | 77.3% | 23.474 | 77.9% | 10.8% |
| PUBLIC | 7.647 | 22.7% | 6.642 | 22.1% | 15.1% |
| TOTAL | 33,646 | 30,116 | 11.72% |
Details of revenue relating to 31 March 2015 are shown below, compared with the figures as at 31 March 2014, broken down by geographical area (in K €).
| Exprivia Group (value in $K \in \Sigma$ ) | 31.03.2015 | Effect % 31.03.2014 | Effect% Variations% | ||
|---|---|---|---|---|---|
| ITALY | 30.742 | 91.4% | 27.017 | 89.7% | 13.8% |
| FOREIGN | 2.904 | 8.6% | 3.099 | 10.3% | -6.3% |
| TOTAL | 33,646 | 30,116 | 11.72% |
The Business Unit Banks, Financial and Insurance Companies ended Q1 2015 in line with the results achieved in 2014, basically consolidating growth in Q1 2014, despite the fact that the leading banking groups in the first quarter did not make any new major investments and postponed them until after they have consolidated the comprehensive results of 2014.
In this context the contribution guaranteed by the different components in the BU was varied (though hovering around 5%) and especially benefited from the service components started up in the last quarter of 2014. Indeed:
In conclusion, it was a quarter confirming the substantially positive trends of the BU Banks, Financial and Insurance Companies, which in future quarters will likely receive the positive impact of the Business Development performed over the last two quarters, if investments take off and the market responds positively.
Revenue from the Business Unit Energy and Utilities (including Business Process Outsourcing) fell from euro 7.9 million in Q1 2014 to euro 6.3 million in Q1 2015 (a 20% decrease) mainly as a result of reselling hardware/software for a project in the first quarter of 2014.
The Business Unit Energy and Utilities (excluding BPO) continues to consolidate and diversify its business, by acquiring new contracts and especially by expanding its customer base.
In particular, in the transport segment the Core Application for the airports of Milano Linate and Malpensa for SEA became operational, and an important digitalisation project for ATM (Milan local public transport) was wrapped up, involving mobile applications using handheld devices to manage maintenance on the Milan underground system and public bus service. This enabled ATM to expand considerably the number of vehicles in transit both on the road and underground for the universal Expo.
The Business Unit Energy and Utilities (excluding BPO) plays an increasingly important role in changing the approach from a customer-supplier relationship to an actual partnership with customers, this made possible through a constant commitment to satisfying the growing need of major players in the energy segment to outsource administration processes.
The main activities continue to be the management and development of company management systems, the creation of applications for the management of customer care and the sale of innovative services through a variety of contact channels.
BPO (Business Process Outsourcing) is specialised in Customer Care, both front office and back office. Revenue rose from euro 2 million in Q1 2014 (1.8 million generated by front office services and 600 thousand from back office services) to euro 2.4 million in Q1 2015 (a 20% increase) mainly as a result of higher specialisation acquired with the sale of energy projects and the better % of defectiveness.
BPO continues to consolidate and diversify its business, by acquiring new contracts and especially by expanding its customer base.
Concerning the consolidation phase for Customer Care and Back Office services provided to the key accounts "ENEL Servizio Elettrico" and "ENEL Energia" (Deregulated Market and Consumer Protection), the performance was extremely positive and most of the quantitative, qualitative and sales targets were achieved making Exprivia one of the best performers out of all ENEL outsourcers.
With respect to new customers acquired in the industry segment a front office service was successfully started up to provide technical support (corporate) for Unilever spa. The same service might be expanded to include the entire country which would likely result in over 400,000 contacts yearly. For the parapharmaceutical segment testing began to provide back office e-commerce services for an important customer in the sector.
Thus, the primary activities continue to be services for customer care, back office (invoicing, complaints and credit management) and sales of traditional and innovative energy products including cross-selling and upselling.
The Utilities Business Unit recorded revenues of euro 2.7 million in Q1 2015, slightly lower than the same period in 2014 (euro 2.8 million). The industry sector is still undergoing difficulty, although there are segments that began investing in IT projects, especially those linked to international trends.
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.
The experience acquired in the area of mobility and analytics is of great importance for growth prospects. Investments made on the SAP Hana platform have positioned us among 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.
In the first quarter of 2015, the Oil & Gas business unit recorded revenues amounting to euro 3.6 million, which is a slight rise over the same period in the previous year (euro 3.2 million), where, however, trends in the energy segment were positive, with a rising backlog of projects and with the acquisition of new activities in areas with higher rates of innovation.
In particular, in addition to the traditional ERP area of corporate applications, with SAP Hana projects, significant work was carried out in the field on Exploration document systems, self-service applications in retail natural gas distribution and on-site safety projects, as well as the constant upgrading of corporate portal applications. Exprivia continued to ensure that its customers are provided with efficiency and high quality deliveries while supporting its customers in achieving prestigious international recognition.
Particularly significant are the projects released in HSE with vertical Oil & Gas integration of solutions to support workplace safety processes in order to comply with international standards.
In Q1 2015 there was a decrease in consultancy services rendered in the TLC market in Italy as a result of the negative trends in network services provided by telephone operators. Indeed, in 2014 these services were characterised by falling volumes (-7.1%) compared with 2013. In any case, an improvement is expected with a more limited reduction (-2.8%) in 2015 (source: Assinform/Netconsulting, March 2015).
The Telco & Media Business Unit recorded revenues of euro 4.3 million in Q1 2015, not comparable with the same period in 2014 due to lack of data. There was a considerable rise that traces the line set in the 2015 budget. These increases can be seen with all the key customers and reflect some major victories for example with Huawei, Ericsson Telecomunicazioni and Telecom Italia. Together with the rise in revenue there was also a decrease in Opex costs, which made it possible to make up for the small loss in margins from contract work and in relation to investments made to extend the area of competence to major customers.
In the first quarter, the Health and Healthcare business unit recorded revenues of euro 5.6 million, 3% higher than the figure in the same period of 2014 (euro 5.4 million). The BU achieved this result despite the reductions in the territory following the resource internalisation process implemented by Regione Puglia. This as revenues rise from regional projects in Marche, Campania and Calabria.
There was a 13% rise over 2014 in the hospital segment due to rising revenues from a series of projects for key customers in central and northern Italy.
Revenues from the regional area fell by 9% compared to 2014 due to the aforementioned resource internalisation process implemented by the region, especially the Brindisi ASL [local healthcare provider].
The Business Unit Defence, Aerospace and Public Administration closed the first quarter of 2015 with revenues amounting to euro 2.6 million, which is a significant improvement (36%) over the figure recorded for the same period last year (euro 2 million).
The improvement is from certain Public Administration projects that started in Q4 2014 and peaked in Q1 2015.
The Defence and Aerospace segment is still characterised by careful attention to rationalising expense by institutional customers and by the slow reorganisation of major industrial companies and large entities. The planning of domestic and European investments in technological innovation is expected to enable companies like Exprivia, which operate in high technology, to carve out new growth opportunities.
In Central Public Administration Consip continues to have an increasingly important role, both as a unified central procurement entity for public administration and as a driver in the process to standardise IT systems for public administration. This is consistent with the guidelines produced by AGID through the Digital Agenda programme. Exprivia is focusing its commercial actions on this area and started up a review process of its value proposition.
In Local Public Administration the positive trend continues, which already started in 2014 with the acquisition of new contracts, and revenues rose by over 30% compared with the same period last year.
International business development focused on consolidating the group's presence in markets where companies in the Exprivia Group operate.
In Spain, where the Exprivia Group is present with two subsidiaries, Profesionales de Sistemas Aplicaciones y Productos S.L. (ProSap) and Exprivia S.L., offering ERP applications and SAP services for industry and distribution, Business Intelligence solutions for the Healthcare sector, and web services (marketing and online sales) for Banks and large distribution chains.
In Mexico, where the Exprivia Group operates directly through Prosap Mexico, sales and delivery actions continued with major private and public companies operating in the infrastructure construction sector in Latin America. Prosap Mexico is a SAP Gold Partner.
Business development and activities are expanding for Prosap Guatemala, which operates also in other Central America countries, and Prosap Consulting in the USA in the industry sector.
In Brazil, business growth continued for Exprivia do Brasil Serviços de Informatica Ltda in the IT Security segment and in the development of SAP ERP projects, even if growth in the country's economy was much slower than originally expected with GDP in 2014 remaining practically the same as in 2013 and the value of the local currency (BRL) declined significantly with respect to the euro and US dollar.
In China, Exprivia Asia Ltda was incorporated in Hong Kong in May 2014, which in turn incorporated Exprivia IT Solutions (Shanghai) Co. Ltd" (as sole shareholder). Marketing activities continued, as did efforts to establish contacts with Chinese institutions and with the Italian and European companies present in the area providing professional services for IT infrastructure and SAP environments.
There were no corporate events worth noting.
There were no acquisitions or sales to be mentioned.
On 23 April 2015, the shareholders' meeting of Exprivia SpA met on second call.
The Ordinary Shareholders' Meeting approved the financial statements as at 31/12/2014 and resolved to distribute a dividend of € 0.028 per share.
The Corporate Governance and Ownership Report and the Remuneration Report for directors and management with strategic responsibility 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 treasury shares, pursuant to articles 2357 and 2357-ter of the Italian Civil Code.
The Extraordinary Shareholders' Meeting approved the proposal to make statutory amendments concerning:
There were no acquisitions or sales after 31 March 2015 to be mentioned.
The tables below show the number of company workers as at 31 March 2015 compared with 31 December 2014. In particular, the first table (Table 1) shows the number of resources, for which the number of parttime workers makes up about 32.38%, with various configurations in terms of contract hours. The second table shows the number of full-time equivalent workers (on an annual basis) (Table 2):
| Employees | Temporary workers | ||||||
|---|---|---|---|---|---|---|---|
| Company | 31/12/2014 | 31/03/2014 | 31/03/2015 | 31/12/2014 | 31/03/2014 | 31/03/2015 | |
| Exprivia SpA | 672 | 893 | 675 | 10 | 32 | 13 | |
| Exprivia Healthcare IT Srl |
323 | 263 | 327 | - | - | - | |
| Exprivia Enterprise Consulting Srl |
170 | 184 | 168 | 1 | 2 | 1 | |
| Exprivia Digital Financial Solutions Srl |
191 | - | 193 | - | - | - | |
| Exprivia Projects Srl | 360 | 402 | 382 | - | - | - | |
| Exprivia Telco&Media Srl |
274 | - | 291 | 5 | - | 5 | |
| Exprivia Shangai | 14 | - | 14 | 1 | - | 1 | |
| Exprivia SL (Spain) | 15 | 15 | 15 | - | - | - | |
| Prosap (group) SL | 105 | 130 | 97 | - | - | - | |
| Exprivia do Brasil Servicos de Informatica Ltda |
29 | 30 | 27 | 1 | 1 | 1 | |
| Sispa | - | 58 | - | - | - | - | |
| Spegea S.c. a r. l. | 9 | 9 | 8 | 1 | 1 | 1 | |
| Total | 2162 | 1984 | 2197 | 19 | 36 | 22 | |
| Executives | 38 | 35 | 38 | ||||
| Middle Managers | 185 | 173 | 187 |
| Company | Employees | Temporary workers | |||||
|---|---|---|---|---|---|---|---|
| 31/12/2014 | 31/03/2014 | 31/03/2015 | 31/12/2014 | 31/03/2014 | 31/03/2015 | ||
| Exprivia SpA | 666 | 884 | 669 | 10 | 32 | 13 | |
| Exprivia Healthcare IT Srl |
315 | 250 | 319 | - | - | - | |
| Exprivia Enterprise Consulting Srl |
165 | 180 | 163 | 1 | 2 | 1 | |
| Exprivia Digital Financial Solutions Srl |
190 | - | 192 | - | - | - | |
| Exprivia Projects Srl | 230 | 258 | 238 | - | - | - | |
| Exprivia Telco&Media Srl |
273 | - | 290 | 5 | - | 5 | |
| Exprivia Shangai | 14 | - | 14 | 1 | - | 1 | |
| Exprivia SL (Spain) | 14 | 14 | 15 | - | - | - | |
| Prosap (group) SL | 105 | 130 | 97 | - | - | - | |
| Exprivia do Brasil Servicos de Informatica Ltda |
29 | 30 | 27 | 1 | 1 | 1 | |
| Sispa | - | 57 | - | - | - | - | |
| Spegea S.c. a r. l. | 9 | 9 | 8 | 1 | 1 | 1 | |
| Total | 2010 | 1812 | 2032 | 19 | 36 | 22 | |
| Executives | 38 | 38 | 38 | ||||
| Middle Managers |
184 | 171 | 186 |
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 aggregates the Group Finance function with the Administration 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:
In compliance with applicable legislative and regulatory provisions, and in particular with:
(in) the new "Regulations on transactions with affiliates – 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 new "Procedure for Transactions with Affiliates", setting forth provisions concerning transactions with affiliates in order to ensure transparent and correct operations with affiliates in substance and procedure carried out directly or through companies that are directly and/or indirectly controlled by Exprivia ("Exprivia Group").
This procedure replaced the one previously in force, which had been introduced on 26 March 2007.
Transactions with affiliates are part of normal business management and are carried out under normal market terms.
During the first quarter of 2015, no relevant transactions were carried out pursuant to the procedure of transactions with affiliates.
The procedure for performing inter-company transactions and transactions with associated companies is published on the company website in the section "Investor Relations – Corporate Governance – Corporate Information".
The table below shows movements with related parties.
| Description | 31/03/2015 | 31/12/2014 | Variation |
|---|---|---|---|
| Failure Mindmotion Srl in liquidation | 219,150 | 219,150 | |
| TOTAL | 219,150 | 219,150 |
| Description | 31/03/2015 | 31/12/2014 | Variation |
|---|---|---|---|
| Failure Mindmotion Srl in liquidation | 63,344 | 63,344 | |
| TOTAL | 63,344 | 63,344 | 0 |
The tables below show relations between the Exprivia Group and the parent company Abaco Innovazione SpA as at 31 March 2015, compared with figures at 31 December 2014 for the equity data and with the same period of the previous year for economic data.
| Description | 31/03/2015 | 31/12/2014 | Variation |
|---|---|---|---|
| Exprivia S.p.A. | 1,277,239 | 1,302,438 | (25, 199) |
| TOTAL | 1,277,239 | 1,302,438 | (25, 199) |
It is worth noting that the receivables, amounting to euro 1,019,791, are of a financial and interest-bearing nature.
| Description | 31/03/2015 | 31/03/2014 | Variation |
|---|---|---|---|
| Exprivia S.p.A. | 7,346 | 13,404 | (6,058) |
| TOTAL | 7.346 | 13,404 | (6,058) |
In this economic context, which continues to show signs of global economic recovery, also in the first quarter Exprivia grew at a double-digit rate and maintains its profitability, which rose in absolute value. According to forecasts the IT market in Italy will see an upward trend with respect to previous years. Unless these forecasts prove wrong, Exprivia will give a significant contribution to the digitalisation of the country.
The Group confirms its intention to make efforts to continue growth and increase profitability. Figures are being processed in order to draw up the 2015-2020 business plan, which will be structured around three two-year periods characterised by approaches for gradual growth.
Interim Report on Operations as at 31 March 2015
33
| Amount in Euro | |||
|---|---|---|---|
| Note | 31.03.2015 | 31.12.2014 | |
| Land and buildings | 11,169,232 | 11,266,613 | |
| Work in progress and anvances | |||
| Other assets | 3,243,478 | 3,436,488 | |
| Property, plant and machinery | 14,412,710 | 14,703,101 | |
| Goodwill | 67,228,037 | 67,263,482 | |
| Goodwill and other assets with an indefinite useful life | 67,228,037 | 67,263,482 | |
| Intangible assets | 1,330,623 | 1,351,287 | |
| Research and development costs | 3,513,491 | 2,876,063 | |
| Work in progress and advances | 776,627 | ||
| Other Intangible Assets | 4,844,114 | 5,003,977 | |
| Investments in other companies | 893,352 | 893,352 | |
| Equity investments | 893,352 | 893,352 | |
| Other receivables | 1,746,554 | 1,714,748 | |
| Other financial assets | 1,746,554 | 1,714,748 | |
| Tax advances/deferred taxes | 1,989,474 | 2,087,973 | |
| Deferred tax assets | 1,989,474 | 2,087,973 | |
| NON-CURRENT ASSETS | 91,114,241 | 91,666,633 |
| Amount in Euro | |||
|---|---|---|---|
| Note | 31.03.2015 | 31.12.2014 | |
| Trade receivables | 58,776,638 | 62,325,125 | |
| Receivables from associates | 219,150 | 219,150 | |
| Receivables from parent companies | 1,277,239 | 1,302,438 | |
| Other receivables | 13,353,359 | 12,246,976 | |
| Tax receivables | 2,716,264 | 2,137,941 | |
| Trade receivables and other | 76,342,650 | 78,231,630 | |
| Inventories | 272,661 | 143,126 | |
| Inventories | 272,661 | 143,126 | |
| Work in progress contracts | 14,605,829 | 11,426,026 | |
| Work in progress contracts | 14,605,829 | 11,426,026 | |
| Held at bank | 9,151,820 | 12,042,644 | |
| Cheques and cash in hand | 56,185 | 65,955 | |
| Cash at bank and on hand | 9,208,005 | 12,108,599 | |
| Cheques and cash in hand | 349,740 | 349,740 | |
| Cash at bank and on hand | 349,740 | 349,740 | |
| CURRENT ASSETS | 100,778,885 | 102,259,121 | |
| ASSETS | 191,893,126 | 193,925,754 |
| Amount in Euro | |||
|---|---|---|---|
| Note | 31.03.2015 | 31.12.2014 | |
| Share Capital | 26,100,219 | 26,410,269 | |
| Share capital | $\mathbf{1}$ | 26,100,219 | 26,410,269 |
| 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 | 3,561,670 | 3,561,670 | |
| Other reserves | 16,820,603 | 16,983,866 | |
| Riseva in sospensione di imposta | (445, 660) | (270, 895) | |
| Other reserves | $\mathbf{1}$ | 19,936,613 | 20,274,641 |
| Retained earning/loss | 5,045,145 | 2,014,991 | |
| Profits/Losses for previous periods | 1 | 5,045,145 | 2,014,991 |
| Profit/Loss for the period | (271, 320) | 3,037,163 | |
| SHAREHOLDERS' EQUITY | 71,799,533 | 72,725,940 | |
| Minority interest | 791,867 | 959,836 | |
| GROUP SHAREHOLDERS' EQUITY | 71,007,665 | 71,766,104 | |
| NON-CURRENT LIABILITIES | |||
| Non-curent bond | 4,283,397 | 4,272,794 | |
| Non-current bond | 4,283,397 | 4,272,794 | |
| Non-curent bank debt | 6,930,513 | 7,265,127 | |
| Non-current bank debt | 6,930,513 | 7,265,127 | |
| Trade payables after the financial year | 333,493 | 228,427 | |
| Tax liabilities and amounts for social security payable after the financial ye | 61,839 | 119,161 | |
| Other financial liabilities | 395,332 | 347,588 | |
| Other provisions | 1,815,566 | 1,384,724 | |
| Provision for risks and charges | 1,815,566 | 1,384,724 | |
| Employee severance indemnities | 10,014,727 | 10,230,522 | |
| Employee provisions | 10,014,727 | 10,230,522 | |
| Provisions for deferred taxes | 983,816 | 991,905 | |
| Deferred tax liabilities | 983,816 | 991,905 | |
| NON CURRENT LIABILITIES | 24,423,351 | 24,492,660 |
| Amount in Euro | ||||
|---|---|---|---|---|
| Note | 31.03.2015 | 31.12.2014 | ||
| Current bond | 724,914 | 656,902 | ||
| Current bond | 724,914 | 656,902 | ||
| Current bank debt | 27,707,997 | 31,206,922 | ||
| Current bank debt | 27,707,997 | 31,206,922 | ||
| Trade payables | 21,197,555 | 22,524,620 | ||
| Trade payables | 21,197,555 | 22,524,620 | ||
| Advances | 4,112,916 | 4,162,600 | ||
| Advances payment on work in progress contracts | 4,112,916 | 4,162,600 | ||
| Payables to associated companies | 63,344 | 63,345 | ||
| Other payables | 2,942,040 | 2,637,341 | ||
| Other financial liabilities | 3,005,384 | 2,700,686 | ||
| Tax liabilities | 14,933,462 | 15,253,993 | ||
| Tax liabilities | 14,933,462 | 15,253,993 | ||
| Amounts payable to pension and social security institutions | 4,265,750 | 5,550,781 | ||
| Other payables | 19,722,264 | 14,650,650 | ||
| Other current liabilities | 23,988,014 | 20,201,431 | ||
| CURRENT LIABILITIES | 95,670,242 | 96,707,154 | ||
| LIABILITIES | 191,893,126 | 193,925,754 |
| Amount in Euro | ||||
|---|---|---|---|---|
| Note | 31.03.2015 | 31.03.2014 | ||
| Revenue from sales and services | 33,510,750 | 30,384,033 | ||
| Revenues | 2 | 33,510,750 | 30,384,033 | |
| Other revenues and income | 99,691 | 157,843 | ||
| Grants related to income | 849,780 | 783,590 | ||
| Increase in capitalised expenses for intenal projects | 318,808 | 378,594 | ||
| Other income | 3 | 1,268,279 | 1,320,027 | |
| Changes in inventories of work in progress | 135,473 | (267, 842) | ||
| Changes in inventories of finished goods and work in progress | 4 | 135,473 | (267, 842) | |
| PRODUCTION REVENUES | 34,914,502 | 31,436,218 | ||
| Costs of raw, subsid. & consumable mat. and goods | 5 | 2,268,153 | 2,751,828 | |
| Salaries | 6 | 23,512,566 | 20,835,413 | |
| Other costs for services | 7 | 5,473,213 | 4,444,057 | |
| Costs for leased assets | 8 | 997,917 | 1,228,234 | |
| Sundry operating expenses | 9 | 304,191 | 276,946 | |
| Provisions | 10 | 351,563 | 100,000 | |
| TOTAL PRODUCTION COSTS | 32,907,603 | 29,636,478 | ||
| DIFFERENCE BETWEEN PRODUCTION COSTS AND REVENUES | 2,006,899 | 1,799,740 |
| Amount in Euro | |||||
|---|---|---|---|---|---|
| Note | 31.03.2015 | 31.03.2014 | |||
| Amortisation, depreciation and write-downs | 11 | 1,135,574 | 897,226 | ||
| OPERATIVE RESULT | 871,325 | 902,514 | |||
| Financial income and charges | 12 | 597,770 | 707,995 | ||
| PRE-TAX RESULT | 273,555 | 194,519 | |||
| Income tax | 13 | 544,875 | 603,836 | ||
| PROFIT OR LOSS FOR THE PERIOD | 14 | (271, 320) | (409, 317) | ||
| Attributable to: | |||||
| Shareholders of holding company | (183, 562) | (402, 707) | |||
| Minority interest | (87, 757) | (6,610) | |||
| Earnings per share losses | 15 | ||||
| Basic earnings per share | (0.0036) | (0.0079) | |||
| Basic earnings diluted | (0.0036) | (0.0079) |
| Description | 31/12/2014 31/03/2014 | 31/12/2014 | |
|---|---|---|---|
| Amount in Euro | |||
| Description | 31.03.2015 | 31.03.2014 | 31/12/2014 |
| Profit for the year | (271, 320) | (409, 317) | 3,037,163 |
| Other gains (losses) total will not subsequently be reclassified in profit (loss) |
|||
| Profit (loss) Actuarial effect of IAS 19 | (1, 111, 493) | ||
| Tax effect of changes | 305,661 | ||
| Total other comprehensive income (loss) will not subsequently be reclassified in profit (loss) |
(805, 832) | ||
| Other gains (losses) total will not subsequently be reclassified in profit (loss) |
|||
| Change in translation reserve | (174, 765) | (270, 895) | |
| Total other comprehensive income (loss) will not subsequently be reclassified in profit (loss) |
(174, 765) | (270, 895) | |
| NET COMPREHENSIVE INCOME FOR THE PERIOD | (446,085) | (409, 317) | 1,960,436 |
| attributable to: | |||
| Group | (358, 328) | (402,707) | 2,566,944 |
| Minority interest | (87, 757) | (6,610) | (606, 508) |
| Operations | Company Capital |
Own shares |
Share Premium Fund |
Reval. Reserve |
Other Reserves |
Profits (Losses) brought forward |
the period | Profit (Loss) for Total Net Worth | Minority Interests |
Total Group Net Worth |
|---|---|---|---|---|---|---|---|---|---|---|
| Balance at 31/12/2012 | 26,979,658 | (494, 012) | 18,081,738 2,907,138 12,582,424 | 6,199,449 | 2,424,481 | 68,680,875 | 1,500,272 | 67,180,603 | ||
| Reclassification previous year's profit to previous year's profit |
2,604,023 | (179, 542) | (2,424,481) | |||||||
| Dividend distribution | ||||||||||
| Dividend distribution | ||||||||||
| Purchase of own shares | (142, 775) | (56,858) | (199, 633) | (199, 633) | ||||||
| Sale of own shares | $\circ$ | |||||||||
| Changes in consolidated companies Components of comprehensive |
(98, 476) | 162,960 | 64,484 | (35, 131) | 99,615 | |||||
| income | $\circ$ | |||||||||
| Profit (loss for the period) | 2,855,879 | 2,855,879 | 437,752 | 2,418,127 | ||||||
| Effects of applying IAS 19 | (207, 393) | (207, 393) | 4,021 | (211, 414) | ||||||
| Total profit (loss) for | ||||||||||
| components of comprehensive income |
2,648,486 | 441,773 | 2,206,713 | |||||||
| Balance at 31/12/2013 Reclassification previous year's |
26,979,658 (636,787) | 18,081,738 2,907,138 15,031,113 | 5,975,474 | 2,855,879 | 71,194,213 | 1,906,914 | 69,287,299 | |||
| profit to previous year's profit Other movements (purchase of own |
4,977,306 | (2, 121, 427) | (2,855,879) | |||||||
| shares) Other movements (sales / use own |
(477, 128) | (196, 798) | (673,926) | (673,926) | ||||||
| shares) | 544,526 | 432,264 | 976,790 | 976,790 | ||||||
| Changes in scope of consolidation, | ||||||||||
| acquisitions of minorities | 301,651 | (1,033,224) | (731, 573) | (340,570) | (391,003) | |||||
| Components of comprehensive income |
||||||||||
| Profit (loss for the period) | 3,037,163 | 3,037,163 | (464, 197) | 3,501,360 | ||||||
| Effects of applying IAS 19 | (805, 832) | (805, 832) | (9,875) | (795, 957) | ||||||
| Translation reserve | (270, 895) | (270, 895) | (132, 436) | (138, 459) | ||||||
| Total profit (loss) for | ||||||||||
| components of comprehensive income |
1,960,436 | (606, 508) | 2,566,944 | |||||||
| Balance at 31/12/2014 | 26,979,658 (569,389) | 18,081,738 2,907,138 20,274,641 | 2,014,991 | 3,037,163 | 72,725,941 | 959,836 | 71,766,105 | |||
| Reclassification previous year's profit to previous year's profit |
3,037,163 | (3,037,163) | $\bf{0}$ | $\circ$ | ||||||
| Other movements (purchase of own shares) |
(310,050) | (163, 264) | (473, 314) | (473, 314) | ||||||
| Other movements (sales / use own | ||||||||||
| shares) | $\circ$ | $\circ$ | ||||||||
| Changes in scope of consolidation, acquisitions of minorities |
(7,009) | (7,009) | (80, 212) | 73,203 | ||||||
| Components of comprehensive | ||||||||||
| income | ||||||||||
| Profit (loss for the period) | (271, 320) | (271, 320) | (87, 757) | (183, 563) | ||||||
| Effects of applying IAS 19 | $\circ$ | $\circ$ | ||||||||
| Translation reserve | (174, 765) | (174, 765) | (174, 765) | |||||||
| Total profit (loss) for components of comprehensive |
||||||||||
| income | (446, 085) | (87, 757) | (358, 328) | |||||||
| Balance at 31/03/2015 | 26,979,658 (879,439) | 18,081,738 2,907,138 19,936,612 | 5,045,145 | (271, 320) | 71,799,533 | 791,867 | 71,007,665 |
| Amount in Euro | ||
|---|---|---|
| 31.03.2015 | 31.03.2014 | |
| Operating activities: | ||
| Profit (loss) | (271, 320) | (409, 317) |
| Amortisation, depletion and depreciation of assets | 1,057,491 | 869,142 |
| Provision for Severance Pay Fund | 993,676 | 880,518 |
| Advances/Payments Severance Pay | (1, 209, 471) | (1,052,892) |
| Adjustment of value of financial assets | ||
| Cash flow arising from operating activities | 570,376 | 287,451 |
| Increase/Decrease in net working capital: | ||
| Variation in stock and payments on account | (3,359,022) | (872, 392) |
| Variation in receivables to customers | 3,548,487 | 4,487,088 |
| Variation in receivables to parent/subsidiary/associated company | 25,200 | (13, 403) |
| Variation in other accounts receivable | (1,684,706) | (1,889,931) |
| Variation in payables to suppliers | (1, 262, 761) | 1,207,561 |
| Variation in payables to parent/subsidiary/associated company | (1) | |
| Variation in tax and social security liabilities | (1,605,562) | (474,980) |
| Variation in other accounts payable | 5,376,204 | 4,127,215 |
| Cash flow arising (used) from current assets and liabilities | 1,037,839 | 6,571,159 |
| Cash flow arising (used) from current activities | 1,608,215 | 6,858,610 |
| Investment activities: | ||
| Variation in tangible assets | (187, 824) | (1, 152, 886) |
| Variation in intangible assets | (383,968) | (348, 575) |
| Variation in financial assets | 66,693 | (194, 522) |
| Cash flow arising (used) from investment activities | (505,099) | (1,695,983) |
| Financial activities: | ||
| Changes in financial assets not held as fixed assets | 365,431 | 202,769 |
| Variation in other reserves | (181, 773) | (60, 677) |
| Cash flow arising (used) from financial activities | 183,658 | 142,092 |
| Increase (decrease) in cash | 1,286,774 | 5,304,718 |
| Banks and cash profits at start of year | 14,224,271 | 9,398,811 |
| Banks and cash losses at start of year | (43,957,966) | (45,512,934) |
| Banks and cash profits at end of period | 11,796,991 | 10,813,648 |
| Banks and cash losses at end of period | (40, 243, 912) | (41,623,053) |
| Increase (decrease) in liquidity | 1,286,774 | 5,304,718 |
The quarterly report as at 31 March 2015 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 2015 include the equity, economic and financial situations of the Holding Company Exprivia S.p.A. and subsidiaries, and were not subject to changes with respect to 31 December 2014.
The table below shows the companies under consolidation; the investments shown below are all held directly by the Holding Company Exprivia apart from the companies ProSap SA de CV, ProSap Centroamerica SA, ProSap Perù Sac, ProSap Holding Inc and ProSap Consulting LLC (incorporated in 2014), which are held indirectly:
| Company | Area |
|---|---|
| Consorzio Exprivia S.c.ar.l. | Other |
| Exprivia Asia Ltd | International Aerea |
| Exprivia IT Solutions (Shanghai) Co Ltd | International Aerea |
| Exprivia Projects Srl | Utilities |
| Exprivia do Brasil Serviços de Informatica Ltda | International Aerea |
| Exprivia SL | International Aerea |
| Exprivia Healthcare IT Srl | Healthcare/ Public Administrations |
| Exprivia Telco & Media Srl | Telco & Media |
| Profesionales de Sistemas Aplicaciones y Productos S.L. | International Aerea |
| ProSap SA de CV (Messico) | International Aerea |
| ProSAP Perù SAC | International Aerea |
| ProSAP Centroamerica S.A (Guatemala) | International Aerea |
| ProSap Holding Inc. | International Aerea |
| ProSap Consulting LLC | International Aerea |
| Exprivia Enterprise Consulting Srl | Industry and Aerospace |
| Exprivia Digital Financial Solutions Srl | Banks, Finance and Insurance |
| Spegea Scarl | Other |
The table below provides the main data on the aforementioned subsidiaries consolidated using the line-byline method.
| Company | Company | Results for | Net worth Total revenues Total Assets | % of holding | ||
|---|---|---|---|---|---|---|
| capital | period | |||||
| Consorzio Exprivia S.c.a.r.l | 20,000 | (1,683) | 9.893 | 20,631 | 100.00% | |
| Expriva SL | 8,250 | (4, 438) | 1,643,555 | 285,813 | 3,662,048 | 100.00% |
| Gruppo Exprivia Asia | 58,176 | (12, 845) | 40,366 | 248,909 | 560,498 | 100.00% |
| Exprivia Enterprise Consulting Srl | 1,500,000 | (247, 968) | 1,244,748 | 2,086,491 | 9,412,094 | 100.00% |
| Exprivia Healthcare IT Srl | 1,982,190 | (177, 261) | 10,013,872 | 5,610,577 | 34,941,977 | 100.00% |
| Exprivia Do Brasil Servicos Ltda | 1,685,068 | (16,055) | 1,586,810 | 376,089 | 1,943,606 | 52.22% |
| Exprivia Projects Srl | 242,000 | 35,382 | 51,270 | 2,387,182 | 3,250,123 | 100.00% |
| Exprivia Telco & Media Srl | 1,200,000 | (37,056) | 897,824 | 4,351,003 | 11,470,067 | 100.00% |
| Gruppo ProSap | 197,904 | (120, 473) | (98, 113) | 1,646,571 | 6,836,583 | 51.12% |
| Exprivia Digital Financial Solution Srl | 1,586,919 | 320,896 | 10,646,534 | 5,739,863 | 22,050,560 | 100.00% |
| Spegea Sc a rl | 125,000 | (52,998) | 204,118 | 518,388 | 2,167,937 | 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 26,100,219 and is represented by 51,883,958 ordinary shares at euro 0.52 nominal value each, including 1,691,230 own shares amounting to euro 879,440 held as at 31 March 2015.
At 31 March 2015 the "share premium reserve" amounted to euro 18,081,738 and is the same as 31 December 2014.
At 31 March 2015 the "revaluation reserve" amounted to euro 2,907,138 and is the same as 31 December 2014.
As at 31 March 2015 the balance of the item "other reserves" amounted to euro 19,936,613 compared with euro 20,274,641 at 31 December 2014 and pertains to:
deriving from the sale of own shares (for a total of euro 432,264) and it remained unchanged with respect to 31 December 2014;
As at 31 March 2015 profit from previous financial years amounted to euro 5,045,145 compared to euro 2,014,991 as at 31 December 2014. The change is mainly due to the allocation of profit from 2014.
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 as at 31 March 2015 amounted to euro 33,510,750 compared to euro 30,384,033 in the same period of 2014.
The table below shows details on revenues, including changes in inventories of raw materials and finished products, broken down by business segment as at 31 March 2015 and compared with the figures for the same period of the previous year (in thousands of euro).
| Exprivia Group (value in $K \in \Sigma$ ) | 31.03.2015 | 31.03.2014 | Variations % |
|---|---|---|---|
| Banks, Finance and Insurance | 5,551 | 5,523 | 1% |
| Energy and Utilities | 6,301 | 7,882 | $-20%$ |
| Industry | 2,684 | 2,777 | $-3%$ |
| Oil and Gas | 3,636 | 3,202 | 14% |
| Telcom and Media | 4,344 | 114 | 3711% |
| Health and Healthcare | 5,571 | 5,410 | 3% |
| Defence, Aerospace and Public Sector | 2,576 | 1,897 | 36% |
| International Business | 2,540 | 2,770 | $-8%$ |
| Other | 442 | 541 | $-18%$ |
| Total | 33,646 | 30,116 | 11.72% |
Details of revenue relating to 31 March 2014 are shown below, compared with the figures for the same period of the previous year, broken down by business segment (in K €).
| Exprivia Group (value in $K \in \Sigma$ ) | 31.03.2015 | 31.03.2014 | Variations% |
|---|---|---|---|
| Projects and Services | 28,911 | 24,349 | 19% |
| Maintenance | 3,326 | 3,044 | 9% |
| HW/ SW third parties | 847 | 1,935 | $-56%$ |
| Own licences | 121 | 248 | $-51%$ |
| Other | 441 | 540 | $-18%$ |
| Total | 33,646 | 30,116 | 11.72% |
The details of the revenues concerning 31 March 2015, compared with the figures as at 31 March 2014, broken down by private and public sector are shown below (in K €).
| Exprivia Group (value in $K \in \Sigma$ ) | 31.03.2015 | Effect % 31.03.2014 | Effect% Variations% | ||
|---|---|---|---|---|---|
| PRIVATE | 26,000 | 77.3% | 23.474 | 77.9% | 10.8% |
| PUBLIC | 7.647 | 22.7% | 6.642 | 22.1% | 15.1% |
| TOTAL | 33,646 | 30,116 | 11.72% |
Details of revenue relating to 31 March 2015 are shown below, compared with the figures as at 31 March 2014, broken down by geographical area (in K €).
| Exprivia Group (value in $K \in \Sigma$ ) | 31.03.2015 | Effect % 31.03.2014 | Effect% Variations% | ||
|---|---|---|---|---|---|
| ITALY | 30.742 | 91.4% | 27.017 | 89.7% | 13.8% |
| FOREIGN | 2.904 | 8.6% | 3.099 | 10.3% | -6.3% |
| TOTAL | 33,646 | 30,116 | 11.72% |
For further detail on business segments see the section "Trends in Exprivia Group Results" in the Directors' Report.
As at 31 March 2015 "other revenue and income" amounted to euro 1,268,279 compared with euro 1,320,027 in the same period of the previous year. The table below provides details on the items.
| Description | 31/03/2015 | 31/03/2014 | Variation |
|---|---|---|---|
| Other income | 99.691 | 157,843 | (58, 152) |
| Operating grants | 849.780 | 783,590 | 66,190 |
| Costs for capitalized internal | 318,808 | 378,594 | (59, 786) |
| TOTAL | 1,268,279 | 1,320,027 | (51, 747) |
As at 31 March 2015 "other revenue and income" amounted to euro 99,691 compared with euro 157,843 in the same period of the previous year. The table below provides details on the items.
| Description | 31/03/2015 | 31/03/2014 | Variation |
|---|---|---|---|
| Contingency assets | 3,325 | 38,074 | (34, 749) |
| Rental income | 8,423 | $\sim$ | 8,423 |
| Other revenue | 21,553 | 26,721 | (5, 168) |
| Pay in lieu of notice | 24,774 | 38,756 | (13,982) |
| Income from assignment of vehicles to staff | 41,515 | 54,264 | (12, 749) |
| capital gains | 101 | 28 | 73 |
| TOTAL | 99,691 | 157,843 | (58, 151) |
As at 31 March 2015 "grants for operating expenses" amounted to euro 849,780 compared with euro 783,590 in the same period of 2014 and refer to grants and tax breaks pertaining to the period or authorised in the period for funded research and development projects.
As at 31 March 2015 the item "costs for capitalised internal projects" amounted to euro 318,808 compared with euro 378,594 in the same period of 2014 and mainly refers to expenses incurred in the period to develop products for the banking and healthcare segments.
As at 31 March 2015 the balance of the item "change in inventories of raw materials and finished products" amounted to euro 135,473 compared with euro -267,842 in the same period of the previous year. It refers to changes in finished products in the healthcare segment.
As at 31 March the item "raw materials, consumables and goods" amounted to euro 2,268,153 compared with euro 2,751,828 in the same period of the previous year. The table below provides details on the items.
| Description | 31/03/2015 | 31/03/2014 | Variation |
|---|---|---|---|
| Purchase of HW-SW products | 531,011 | 1,797,576 | (1, 266, 565) |
| Purchase of HW-SW maintenance | 1,647,995 | 848,058 | 799,937 |
| Stationery and consumables | 37.976 | 41,647 | (3,672) |
| Fuel and oil | 36,309 | 38.780 | (2, 471) |
| Other costs | 12,266 | 21,783 | (9,517) |
| Warranty services on our customers activities | 2.597 | 3,984 | (1, 387) |
| TOTAL | 2,268,153 | 2,751,828 | (483, 675) |
As at 31 March 2015 the item "staff costs" amounted to euro 23,512,566 compared with euro 20,835,413 in 2014. The table below provides details on the item:
| Description | 31/03/2015 | 31/03/2014 | Variation |
|---|---|---|---|
| Salaries and wages | 17,365,900 | 15,424,088 | 1,941,812 |
| Social charges | 4,668,652 | 4,240,109 | 428,543 |
| Severance Pay | 993,676 | 880,519 | 113,157 |
| Other staff costs | 484.338 | 290.697 | 193,641 |
| TOTAL | 23,512,566 | 20,835,413 | 2,677,152 |
The number of group resources as at 31 March 2015 amounted to 2,219 workers, 2,197 of which employees and 22 temporary workers, compared with the number as at 31 December 2014 (2,181 workers, of which 2,162 employees and 19 temporary workers) and as at 31 March 2014 (2,020 workers, of which 1,984 employees and 36 temporary workers).
As at 31 March 2015 the consolidated balance of the item "costs for services" amounted to euro 5,473,213 compared with euro 4,444,057 in the same period of the previous year. The table below provides details on the items:
| Description | 31/03/2015 | 31/03/2014 | Variation |
|---|---|---|---|
| Technical and commercial consultancy | 3,151,129 | 2,299,077 | 852,052 |
| Administrative/company/legal consultancy | 287,883 | 320,287 | (32, 404) |
| Data processing service | 93,740 | 11,188 | 82,552 |
| Auditors' fees | 41,006 | 123,602 | (82, 596) |
| Travel and transfer expenses | 559,329 | 455,225 | 104,104 |
| Other staff costs | 23,566 | 98,848 | (75, 282) |
| Utilities | 265,477 | 243,742 | 21,736 |
| Advertising and agency expenses | 105,637 | 146,871 | (41, 234) |
| HW and SW maintenance | 157,631 | 164,499 | (6,869) |
| Insurance | 245,705 | 133,430 | 112,276 |
| Costs of temporary staff | 109,130 | 135,254 | (26, 124) |
| Other costs | 328,277 | 207,939 | 120,339 |
| Mail services | 104,701 | 100,524 | 4,177 |
| TOTAL | 5,473,213 | 4,444,057 | 1,029,156 |
The most significant change is due to the increase in costs for consultancy, mainly in the banking, finance and insurance and energy segments where there was a corresponding increase in revenues.
As at 31 March 2015 the item "costs for leased assets" amounted to euro 997,917 compared with euro 1,228,234 in the same period of the previous year. The table below provides details on the items:
| Description | 31/03/2015 | 31/03/2014 | Variation |
|---|---|---|---|
| Rental expenses | 354,321 | 561,309 | (206,988) |
| Car rental/leasing | 253.654 | 404,426 | (150, 773) |
| Rental of other assets | 356,234 | 217,453 | 138,781 |
| Royalties | 33,709 | 45,046 | (11, 337) |
| TOTAL | 997,917 | 1,228,234 | (230, 317) |
The decrease in the item "payable rent" is mainly related to rationalisation and optimisation projects at branch offices.
As at 31 March 2015 the consolidated balance of the item "sundry operating expenses" amounted to euro 304,191 compared with euro 276,946 in the same period of the previous year. The table below provides details on the item:
| Description | 31/03/2015 | 31/03/2014 | Variation |
|---|---|---|---|
| Annual subscriptions | 28,218 | 28,665 | (446) |
| Books and magazines | 4,306 | 1,246 | 3,060 |
| Taxes | 72,963 | 67,623 | 5,340 |
| Stamp duty | 27,855 | 27,916 | (61) |
| Penalties and fines | 4,208 | 32,113 | (27,906) |
| Contingency liabilities | 343 | 8,259 | (7, 915) |
| Bank charges and commissions | 117,014 | 89,296 | 27,719 |
| Write-offs | 3,909 | $\sim$ | 3,909 |
| Sundry expenses | 45,375 | 21,829 | 23,546 |
| TOTAL | 304,191 | 276,946 | 27,245 |
As at 31 March 2015 the consolidated balance of the item "provisions" amounted to euro 351,563 compared with euro 100,000 in the same period in 2014.
The table below shows the movements as at 31 March 2015 compared with 31 March 2014.
| Description | 31/03/2015 | 31/03/2014 | Variation |
|---|---|---|---|
| Provision for risks of litigation | 193,110 | 100,000 | 93,110 |
| Provision for legal disputes | 158,453 | 158,453 | |
| TOTAL | 351.563 | 200,000 | 151,563 |
The item "provision for legal disputes" is mainly for the allocation of euro 150,000 for the dispute with Realtech AG concerning the advance termination of the company Realtech Italia SpA following the EEC merger.
As at 31 March 2015 the consolidated balance of the item "amortisation, depreciation and write-downs" amounted to euro 1,135,574 compared with euro 897,226 in the same period in 2014.
The table below shows the movements as at 31 March 2015 compared with 31 March 2014.
| Description | 31/03/2015 | 31/03/2014 | Variation |
|---|---|---|---|
| Ordinary amortization of intangible assets | 579,276 | 474,363 | 104,913 |
| Ordinary depreciation of tangible fixed assets | 478,215 | 394,780 | 83,435 |
| Other write-downs of fixed assets | 28,083 | 28,083 | $\overline{\phantom{a}}$ |
| Write-down of current receivables | 50,000 | 50,000 | |
| TOTAL | 1,135,574 | 897,226 | 238,348 |
The item "amortisation and depreciation" amounted to euro 1,057,491 compared with euro 869,143 as at 31 March 2014 and refers to euro 579,276 for intangible assets and euro 478,215 for tangible assets.
The item "other write-downs" amounted to euro 28,083 and was unchanged compared with the figure as at 31 March 2014. The item refers to asset write-downs.
The balance of "write-downs" as at 31 March 2015 amounted to euro 50,000 and refers to doubtful receivables unlikely to be collected.
The balance of the item "financial (income) charges and other investments" as at 31 March 2015 amounted to euro 597,770 compared with euro 707,995 as at 31 March 2014. The table below provides details on the item:
| Description | 31/03/2015 | 31/03/2014 | Variation |
|---|---|---|---|
| Income from parent companies | (7, 346) | (13, 404) | 6,058 |
| Other income | (29, 694) | (16, 721) | (12, 973) |
| Interest and other financial charges | 682,207 | 742,577 | (60,370) |
| Interest and other financial charges | (47, 397) | (4, 457) | (42, 940) |
| TOTAL | 597,770 | 707,995 | (110, 225) |
As at 31 March 2015 the balance of the item "income from parent companies" amounted to euro 7,364 compared with euro 13,404 as at 31 March 2014 and refers to interest accrued by the parent company Abaco Innovazione S.p.A. for a loan granted by Exprivia SpA.
As at 31 March 2015 the item "other financial income" amounted to euro 29,694 compared with euro 16,721 in the same period in 2014. The table below provides details on the item:
| Description | 31/03/2015 | 31/03/2014 | Variation |
|---|---|---|---|
| Bank interest receivable | 1,928 | 1.058 | 870 |
| Revenues from financial derivatives | 27,328 | $\sim$ | 27,328 |
| Other interest income | 23 | 15,639 | (15,616) |
| Rounding up of assets | 415 | 24 | 391 |
| TOTAL | 29,694 | 16,721 | 12,973 |
As at 31 March 2015 the balance of the item "interest and other financial charges" amounted to euro 682,207 compared with euro 742,577 in the same period of the previous year. The table below provides details on the items:
| Description | 31/03/2015 | 31/03/2014 | Variation |
|---|---|---|---|
| Bank interest payable | 196,484 | 500,670 | (304,186) |
| Interest on loans and mortgages | 237,620 | 127,152 | 110,468 |
| Sundry interest | 170,512 | 14,174 | 156,338 |
| Charges on financial products and sundry items |
77,592 | 100,357 | (22, 765) |
| Rounding up/down | $\sim$ | 225 | (225) |
| TOTAL | 682,207 | 742,577 | (60, 368) |
As at 31 March 2015 the item "gains on currency exchange" amounted to euro 47,397 compared with euro 4,457 at 31 March 2014 and mainly refers to the fluctuations in exchange rates due to the commercial transactions made in currencies different from the national currency used by the foreign companies in the Exprivia Group.
As at 31 March 2015 the item "taxes" amounted to euro 544,875 compared with euro 603,836 as at 31 March 2014. The table below provides details on the changes compared to the previous period:
| Description | 31/03/2015 | 31/03/2014 | Variation |
|---|---|---|---|
| IRES | 323,899 | 115,127 | 208,772 |
| IRAP | 290,958 | 485,307 | (194, 349) |
| FOREIGN TAX | 6,801 | 15,575 | (8, 774) |
| Defered tax | (8,089) | (8,089) | ۰ |
| deferred tax assets | (68, 694) | (4,084) | (64, 610) |
| TOTAL | 544,875 | 603,836 | (58,960) |
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 as at 31 March 2015 closed with a consolidated loss (after tax) of euro 271,320, compared with a loss of euro 409,317 as at 31 March 2014.
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.
As at 31 March 2015 the basic and diluted earnings per share amounted to euro -0.0036.
| Profits (Euro) | 31/03/2015 |
|---|---|
| Profits for determining basic earnings per share (Net profit due to shareholders of parent | |
| company) | (183, 562) |
| Profit for determining the earnings per basic share | (183, 562) |
| Number of shares | 31/03/2015 |
| Number of ordinary shares at 1 January 2015 | 51,883,958 |
| Purchase of own shares at 31 March 2015 | (1,691,230) |
| Average weighted number ordinary shares for calculation of basic profit | 50,913,122 |
| Earnings per share (Euro) | 31/03/2015 |
| Profit (loss) per basic share | (0.0036) |
| Diluted earnings (loss) per share | (0.0036) |
The Consolidated Net Financial Position as at 31 March 2015 was negative euro 28.4 million, a significant improvement from the euro -29.7 million as at 31 December 2014. Although a significant level of investment was maintained (euro 0.5 million), the Group generated liquid assets during the quarter amounting to euro 1.3 million as a result of positive cash flows from income management (euro 0.6 million) and net working capital management (euro 0.1 million).
The undersigned, Gianni Sebastiano, 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 2015 referring to the Consolidated Financial Statements correspond to the accounting documents, books and records.
Molfetta, 14 May 2015.
Financial Reporting Officer Responsible for Preparing Corporate Accounting Documents
Gianni Sebastiano
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