Servizi Italia

Earnings Release • Dec 20, 2019

Informazione Regolamentata n. 0868-133-2019		Data/Ora Ricezione 20 Dicembre 2019 21:36:44	MTA - Star
Societa'	:	SERVIZI ITALIA S.P.A.
Identificativo Informazione Regolamentata	:	126140
Nome utilizzatore	: SERVIZIITAN05 - Manti
Tipologia	:	2.2
Data/Ora Ricezione	:	20 Dicembre 2019 21:36:44
Data/Ora Inizio Diffusione presunta	:	20 Dicembre 2019 21:36:45
Oggetto	:	Servizi Italia S.p.A.: Initial analysis of preliminary 2019 year-end data
Testo del comunicato

Vedi allegato.

Servizi Italia S.p.A.: Initial analysis of preliminary 2019 year-end data

Castellina di Soragna, 20 December 2019

Servizi Italia S.p.A. (the "Company") – a company listed on the STAR segment of the Italian Stock Exchange and leader in the outsourcing of hospital services in Italy, Brazil, Turkey, India, Albania, Morocco and Singapore –here informs that today the Board of Directors has examined an initial analysis of preliminary 2019 year-end data, presented by the Chief Executive Officer.

As highlighted by Assosistema trade association, the Italian industrial laundry market, in which Servizi Italia S.p.A., among others, operates, is going through a structural contraction linked to certain critical issues specific to the healthcare services sector, such as the phenomenon of the awarding of contracts with increasingly downward economic offers.

In this context of market contraction, the following factors must be also considered (i) the missing reconfirmation of the wash-hire services tender related to Lazio Region Health Authorities, in relation to which Lazio Region has decided, in compliance with the provisions of art. 32, paragraph 11 of Legislative Decree no. 50/2016, to proceed with the stipulation of contracts with the successful bidders; (ii) the re-awarding of contracts atlowered prices in Emilia-Romagna and Lombardy regions.

Although the Company had not disclosed to the market any forecasts or estimates about Group's possible results for 2019, the Board of Directors, having taken note today of the initial analysis of preliminary 2019 year-end presented by the Chief Executive Officer, considers prudent, in order to timely and transparently notify the market, to inform that from this analysis arises a reduction in revenues and margins expected by the Servizi Italia Group in the fourth quarter of 2019, compared with figures related to "wash-hire" business segment as reported in the Interim Management Report as at 30 September 2019.

Within the aforesaid context, against a slight reduction in revenues, EBITDA of Servizi Italia S.p.A. separate financial statements, compared to the final data as at 31 December 2018 (equal to Euro 53.3 million), is prudentially expected to decrease, in a range of Euro 49-51 million.

At a consolidated level, revenues for 2019 are expected to grow, thanks to the contribution of acquisitions made in Italy and the results of the foreign companies, although the relative incidence in terms of EBITDA margin is expected to be lower than the final data as at 30 September 2019; prudentially this reduction is expected in a range between 100-200 bps.

Alternative performance indicators

The present document uses an "alternative performance indicator" not provided by the IFRS accounting standards. Here is the calculation method used and the composition of these ratios, in line with the guidelines of the European Securities and Market Authority (ESMA). The Company management has defined: (i) EBITDA as the difference between the value of sales and services and operating costs before depreciation, amortisation, write-downs, impairment and provisions.

This press release, disclosed by SDIR eMarket system, is now available on Company's website www.servizitaliagroup.com and on eMarket STORAGE ().

Servizi Italia S.p.A., a company based in Castellina in Soragna (PR), listed on the STAR segment of the Italian Stock Exchange, is the leading operator in Italy in the field of integrated services for hire, washing and sterilization of textile materials and surgical instruments for hospitals. With a technologically advanced production platform, articulated in laundry facilities, textile sterilization centers, surgical instruments sterilization centers and many wardrobes, the Company, which together with its Italian and foreign subsidiaries constitute the Servizi Italia Group, turns primarily to companies in public and private healthcare sector of center / northern Italy and the State of S.Paulo, Brazil, Turkey, India, Albania, Morocco and Singapore with a wide and diversified offer.

For further information:

Investor Relations Media Relations Servizi Italia iCorporate Tel: +39 0524598511 Tel. + 02 4678 749 investor@servizitaliagroup.com servizitalia@icorporate.it

Giovanni Manti, Luigi Innocenti Arturo Salerni, Ilaria Mastrogregori