Informazione Regolamentata n. 0533-7-2017		Data/Ora Ricezione 22 Marzo 2017 11:11:39
Societa'	:	ESPRINET
Identificativo Informazione Regolamentata	:	86664
Nome utilizzatore	:	ESPRINETN01 - Bertacco
Tipologia	:	IRED 02; IRAG 01; IRED 01
Data/Ora Ricezione	:	22 Marzo 2017 11:11:39
Data/Ora Inizio Diffusione presunta	:	22 Marzo 2017 11:26:40
Oggetto	:	Esprinet 2016 accounts and dividend proposal
Testo del comunicato

Vedi allegato.

Press release in accordance with Consob regulation n. 11971/99

Esprinet 2016 results approved by the Board

Proposed dividend of € 0.135 per share

2016 full year results:

Consolidated sales: € 3,042.3 million (+13% vs € 2,694.1 million as at 31 December 2015) Gross profit: € 163.9 million (+4% vs € 156.9 million) Operating income (EBIT): € 38.6 million -17% vs € 46.5 million) Net income: € 26.9 million (-11% vs € 30.0 million)

Net financial position as at 31 December 2016 positive by € 105.4 million (vs Net financial position as at 31 December 2015 positive by € 185.9 million)

Vimercate (Monza Brianza), 21 March 2017 – The Board of Directors of Esprinet S.p.A. (Italian Stock Exchange: PRT) met today under the chairmanship of Mr. Francesco Monti to examine and approve the draft of the separated and the consolidated financial statements for the fiscal year ended at 31 December 2016, both prepared in accordance with IFRSs requirements.

The net income for the full year 2016 was respectively € 26.9 million and € 12.8 million, while basic earnings per share was € 0.52.

Based on these results, the Board of Directors will propose to the Annual Shareholders' Meeting the distribution of a dividend of € 0.135 per ordinary share¹ , corresponding to a pay-out ratio of 26%² .

The statement for the period ending at 31 December 2016 is still under the revision of Independent Auditor and it is at disposal of the Board of Statutory Auditor.

By 7 April 2017 it will be available by the company headquarter (Vimercate, via Energy Park 20), on the company internet site www.esprinet.com ('Investor Relation', section 'Financial Data') and with further publication pursuant to the applicable law, as well as the Report of Statutory Auditor and the Report of Independent Auditor.

The Board of Director also approved the Corporate Governance Report and the Report on Remuneration, both prepared in accordance with the art. 123-bis of the TUF.

These documents will be sent to Borsa Italiana and will be available by the company headquarter (Vimercate, via Energy Park 20), on the company internet site www.esprinet.com ('Investor Relation') and with further publication pursuant to the applicable law at the time of the publication of this statement.

A) Esprinet Group's financial highlights

The Group's main economic, financial and asset results as at 31 December 2016 are hereby summarised:

¹ Corresponding to a dividend yield of 1.72% (based on Esprinet share closing price of € 7.85 as at 20 March 2017).

² Based on consolidated net profit of the Esprinet Group.

(euro/000)	2016	%	2015	%	Var.	Var. %
Sales	3,042,330	100.00%	2,694,054	100.00%	348,276	13%
Cost of sales	(2,878,435)	-94.61%	(2,537,190)	-94.18%	(341,245)	13%
Gross profi t	163,895	5.39%	156,864	5.82%	7,031	4 %
Other income	2,838	0.09%	-	0.00%	2,838	100%
Sales and marketing costs	(49,871)	-1.64%	(43,974)	-1.63%	(5,897)	13%
Overheads and administrative costs	(78,296)	-2.57%	(66,391)	-2.46%	(11,905)	18%
Operati ng i ncome (EBIT)	38,566	1.27%	46,499	1.73%	(7,933)	-17%
Finance costs - net	(2,847)	-0.09%	(4,243)	-0.16%	1,396	-33%
Other investments expenses / (incomes)	1	0.00%	(9)	0.00%	10	-111%
P rofi t before i ncome taxes	35,720	1.17%	42,247	1.57%	(6,527)	-15%
Income tax expenses	(8,850)	-0.29%	(12,206)	-0.45%	3,356	-27%
Net i ncome	26,870	0.88%	30,041	1.12%	(3,171)	-11%
Earnings per share - basic (euro)	0.52		0.59		(0.07)	-12%

Consolidated sales equal to € 3,042.3 million showed an increase of +13% (€ 348.3 million) compared to € 2,694.1 million as at 31 December 2015. With equal consolidation perimeter, estimated consolidated sales would have been equal to € 2,654.0 million, decreased by -1.49% compared to 2015;
Gross profit equal to € 163.9 million showed an increase of +4% (€ 7.0 million) compared to 2015 as consequence of higher sales only partially offset by a decrease in the gross profit margin. With equal consolidation perimeter, estimated consolidated gross profit would have been equal to € 145.0 million, decreased by -7,56% compared to 2015;
Other income, amounting to € 2.8 million, refers entirely to the gain realized from the newly established company, EDSlan S.r.l., for the business unit acquisition relating to distribution activities in networking, cabling, VoIP and UCC- unified communications sectors;
Operating income (EBIT) at 31 December 2016, equal to € 38.6 million, showed a reduction of -17% compared to 31 December 2015 (€ 46.5 million) as consequence of higher operating costs, affected by € 4.8 million of non-recurring costs sustained, both in Italy and Spain in business combinations and in enlarging of warehouses, which more than compensated the income realized by the subsidiary EDSlan S.r.l.. EBIT margin decreased to 1.27% from 1.73% %, due to a lower consolidated gross profit margin, being substantially in line the incidence of operating costs (-4,21% in 2016 vs -4,09% in 2015). With the same consolidation perimeter, net of business combinations non-recurring costs and income, estimated EBIT would have been equal to € 31.8 million (-31.59) due to, mainly, the EBIT margin decrease;
Profit before income taxes equal to € 35.7 million, (-15% compared to 31 December 2015), showed a lower decrease than the one registered in EBIT thanks to a € 1.4 million improvement in financial charges;
Net income equal to € 26.9 million, showing a reduction of -11% (€ -3.2 million) compared to the value at 31 December 2015;
Basic earnings per ordinary share as at 31 December 2016, equal to € 0.52, showed a reduction of -12% compared to the value at 31 December 2015 (€ 0.59).

(euro/000)	31/12/2016	%	31/12/2015	%	Var.	Var. %
Fixed assets	124,516	58.59%	101,083	90.50%	23,434	23%
Operating net working capital	102,046	48.01%	34,512	30.90%	67,534	196%
Other current assets/liabilities	276	0.13%	(12,607)	-11.29%	12,883	-102%
Other non-current assets/liabilities	(14,305)	-6.73%	(11,296)	-10.11%	(3,009)	27%
Total uses	212,533	100.00%	111,692	100.00%	100,841	90%
Short-term financial liabilities	141,885	66.76%	29,314	26.25%	112,571	384%
Current financial (assets)/liabilities for derivatives	483	0.23%	195	0.17%	288	148%
Financial receivables from factoring companies	(1,492)	-0.70%	(2,714)	-2.43%	1,222	-45%
Other financial receivables	(5,596)	-2.63%	(507)	-0.45%	(5,089)	1004%
Cash and cash equivalents	(285,933)	-134.54%	(280,089)	-250.77%	(5,844)	2%
Net current financial debt	(150,653)	-70.88%	(253,801)	-227.23%	103,148	-41%
Borrowings	38,833	18.27%	65,138	58.32%	(26,305)	-40%
Debts for investments in subsidiaries	8,660	4.07%	5,222	4.68%	3,438	66%
Non-current financial (assets)/liab. for derivatives	28	0.01%	224	0.20%	(196)	-88%
Other financial receivables	(2,292)	-1.08%	(2,696)	-2.41%	405	-15%
Net financial debt (A)	(105,424)	-49.60%	(185,913)	-166.45%	80,489	-43%
Net equity (B)	317,957	149.60%	297,605	266.45%	20,352	7%
Total sources of funds (C=A+ B)	212,533	100.00%	111,692	100.00%	100,841	90%

Consolidated net working capital as at 31 December 2016 equal to € 102.0 million compared to € 34.5 million as at 31 December 2015;
Net financial position as at 31 December 2016, positive by € 105.4 million, compared with a cash surplus equal to € 185.9 million as at 31 December 2015.

The reduction of net cash surplus was due to both business combinations carried out during the year and the performance of consolidated net working capital as at 31 December 2016 which in turn is influenced by technical events often not related to the average level of working capital and by the level of utilisation of both 'without – recourse' factoring programs referring to the trade receivables and of the corresponding securization program.

This program is aimed at transferring risks and rewards to the buyer, thus receivables sold are eliminated from balance sheet according to IAS 39.

Taking into account other technical forms of cash advances other than 'without-recourse assignment', but showing the same effects – such as 'confirming' used in Spain –, the overall impact on financial debt at 31 December 2016 was approx. 400 million euro (approx. 287 million euro as at 31 December 2015);

Consolidated net equity as at 31 December 2016 equal to € 318.0 million, showed an increase of € 20.4 million compared to € 297.6 million as at 31 December 2015.

B) Esprinet S.p.A. financial highlights

The main economic, financial, asset result of Esprinet S.p.A. are hereby summarized:

100.00% -94.71% 5.29% -1.55%	2,015,161 (1,901,464) 113,697	100.00% -94.36% 5.64%	(63,316) 52,891 (10,425)	-3% -3% -9%



	(29,457)	-1.46%	(747)	3%
-2.74%	(49,803)	-2.47%	(3,753)	8 %
1.00%	34,437	1.71%	(14,925)	-43%
-0.10%	(1,989)	-0.10%	8 0	-4%
0.00%	(19)	0.00%	1 9	-
0.90%	32,429	1.61%	(14,826)	-46%
-0.25%	(9,486)	-0.47%	4,621	-49%
0.65%	22,943	1.14%	(10,205)	-44%

Sales equal to € 1,951.8 million, decreased by -3% compared to € 2,015.2 million as at 31 December 2015;

Gross profit equal to € 103.3 million showed a decrease of -9% compared to € 113.7 million of 31 December 2015 as a consequence of lower sales and a gross profit margin decreased from 5.64% to 5.29%;
Operating income (EBIT) equal to € 19.5 million, showed a decrease of -43% compared to 2015 with an Ebit margin decreased from 1.71% to 1.00% as consequence of higher operating costs (€ 4.5 million);
Profit before income taxes equal to € 17.6 million, decreased by -46% (€ 14.8 million) compared to 31 December 2015;
Net income equal to € 12.7 million, showed a decrease of -44% (€ 10.2 million) compared to 31 December 2015.

(euro/000)	31/12/2016	%	31/12/2015	%	Var.	Var. %
Fixed assets	121,958	65.31%	113,698	97.17%	8,261	7%
Operating net working capital	16,801	9.00%	(13,511)	-11.55%	30,312	-224%
Other current assets/liabilities	55,702	29.83%	24,398	20.85%	31,304	128%
Other non-current assets/liabilities	(7,721)	-4.13%	(7,580)	-6.48%	(141)	2%
Total uses	186,740	100.00%	117,005	100.00%	69,735	60%
Short-term financial liabilities	108,779	58.25%	26,197	22.39%	82,582	315%
Current financial (assets)/liabilities for derivatives	428	0.23%	195	0.17%	233	119%
Financial receivables from factoring companies	(1,176)	-0.63%	(1,152)	-0.98%	(24)	2%
Financial (assets)/liab. From/to Group companies	(151,500)	-81.13%	(55,000)	-47.01%	(96,500)	175%
Customers financial receivables	(509)	-0.27%	(507)	-0.43%	(2)	0 %
Cash and cash equivalents	(80,109)	-42.90%	(205,993)	-176.06%	125,884	-61%
Net current financial debt	(124,087)	-66.45%	(236,260)	-201.92%	112,173	-47%
Borrowings	12,252	6.56%	61,138	52.25%	(48,886)	-80%
Non-current financial (assets)/liab. for derivatives	(377)	-0.20%	(145)	-0.12%	(232)	160%
Customers financial receivables	(2,292)	-1.23%	(2,696)	-2.30%	405	-15%
Net Financial debt (A)	(114,504)	-61.32%	(177,963)	-152.10%	63,459	-36%
Net equity (B)	301,244	161.32%	294,968	252.10%	6,276	2%
Total sources of funds (C=A+ B)	186,740	100.00%	117,005	100.00%	69,735	60%

Consolidated net working capital as at 31 December 2016 was equal to € 16.8 million compared to € -13.5 million as at 31 December 2015;
Net financial position as at 31 December 2016, was positive by € 114.5 million, compared with a cash surplus equal to € 178.0 million as at 31 December 2015. The impact of both 'without-recourse' sale and the securitization program of trade receivables as at 31 December 2016 was equal to € 131 million (approx. € 145 million as at 31 December 2015);
Net equity as at 31 December 2016 equal to € 301.2 million, increased by 6.3 million (+2%) compared to 31 December 2015.

C) Separate income statement by legal entity

Find below the separate income statement showing the contribution of each legal entities as considered significant³ .

Should be highlighted that business combination effects started from 9 April 2016 with respect to EDSlan S.r.l., from 1 July 2016 with respect to Vinzeo Technologies S.A.U., from 1 December 2016 with respect to Mosaico S.r.l. and V-Valley Iberian S.L.U.:

							2016
			Italy						Iberi an P	eni nsula
(euro/000)	E.Spa + V Valley	Mosai co	Celly*	EDSlan	Eli m. and other	Total	Espri net Iberi an	Espri net P ortugal	V-Valley Iberi an	Vi nzeo + Tape	Eli m. and other	Total	Eli m. and other	Group
Sales to third parties	1,900,972		11,042 30,415	53,212		- 1,995,640	690,275	26,785	741	328,889	-	1,046,689	-	3,042,330
Intersegment sales	50,849	-	1,911	1,678	(7,932)	46,506	20,845	25	-	1,269	(22,139)	-	(46,506)	-
Sales	1,951,821	11,042	32,326	54,890		(7,932) 2,042,146	711,120	26,810	741			330,158 (22,139) 1,046,689		(46,506) 3,042,330
Cost of sales	(1,848,942)	(10,128)	(18,071)	(47,172)	7,948	(1,916,365)	(683,589)	(26,320)	(673)		(319,961) 22,139	(1,008,404)	46,334	(2,878,435)
Gross profi t	102,879	914	14,255	7,718	1 6	125,781	27,531	490	6 8	10,197	-	38,285	(172)	163,895
Gross Profit %	5.3%	8.3%	44.1%	14.1%	-0.2%	6.2%	3.9%	1.8%	9.2%	3.1%		3.7%		5.4%
Other incomes	-	-	-	2,838	-	2,838	-	-	-	-	-	-	-	2,838
Sales and marketing costs	(28,706)	(130)	(8,882)	(4,193)	(2)	(41,913)	(5,916)	(310)	(60)	(1,654)	-	(7,940)	(18)	(49,871)
Overheads and admin. costs	(54,463)	(122)	(3,640)	(2,816)	74	(60,967)	(13,355)	(515)	(50)	(3,438)	-	(17,357)	28	(78,296)
Operati ng i ncome (Ebi t)	19,710	662	1,733	3,547	8 8	25,739	8,260	(335)	(42)	5,105	-	12,988	(162)	38,566
EBIT %	1.0%	6.0%	5.4%	6.5%	-1.1%	1.3%	1.2%	-1.2%	-5.7%	1.5%		1.2%		1.3%
Finance costs - net														(2,847)
Share of profits of associates														1
P rofi t before i ncome tax														35,720
Income tax expenses														(8,850)
Net i ncome														26,870
- of which attributable to non-controlling interests														203
- of which attributable to Group														26,667

³ V-Valley S.r.l. and Tape S.L.U., are both not showed separately as just a 'commission sales agent' of Esprinet S.p.A. and not yet significant, respectively.

					2015
			Italy			Iberi an P	eni nsula
(euro/000)	E.Spa + V Valley	Celly*	Eli m. and other	Total	Espri net Iberi ca	Espri net P ortugal	Eli m. and other	Total	Eli m. and other	Group
Sales to third parties	1,972,531	25,448	-	1,997,979	677,912	18,162	-	696,075	-	2,694,054
Intersegment sales	42,829	2,276	(2,234)	42,871	17,736	9	(17,744)	-	(42,871)	-
Sales	2,015,360	27,724	(2,234)	2,040,850	695,648	18,171	(17,744)	696,075	(42,871)	2,694,054
Cost of sales	(1,901,630)	(15,224)	2,093	(1,914,761)	(664,964)	(18,022)	17,735	(665,251)	42,822	(2,537,190)
Gross profi t	113,730	12,500	(141)	126,089	30,684	149	(9)	30,824	(49)	156,864
Gross Profit %	5.6%	45.1%	6.3%	6.2%	4.4%	0.8%		4.4%		5.8%
Other incomes	-	-	-	-	-	-	-	-	-	-
Sales and marketing costs	(28,128)	(9,777)	38	(37,867)	(5,862)	(176)	3	(6,035)	(72)	(43,974)
Overheads and admin. costs	(50,466)	(3,869)	(20)	(54,355)	(11,785)	(350)	6	(12,130)	9 4	(66,391)
Operati ng i ncome (Ebi t)	35,136	(1,146)	(123)	33,867	13,037	(377)	-	12,659	(27)	46,499
EBIT %	1.7%	-4.1%	5.5%	1.7%	1.9%	-2.1%		1.8%		1.7%
Finance costs - net										(4,243)
Share of profits of associates										(9)
P rofi t before i ncome tax										42,247
Income tax expenses										(12,206)
Net i ncome										30,041
- of which attributable to non-controlling interests										(280)
- of which attributable to Group										30,321

* Consisting of Celly S.p.A., Celly Nordic OY, Celly Swiss S.a.g.l. e Celly Pacific Limited.

E) Subsequent events

Relevant events occurred after 31 December 2016 are briefly described below:

Syndicated loan of € 210.0 million

Between January and February of the current year a pool of Italian and Spanish banks has favourably ruled on a 5-year loan unsecured amortising facility agreement of up to € 210.0 million split into a Term Loan Facility of up € 145.0 million and a Revolving Facility of € 65.0 million supported by a set of financial covenants. The minimum amount for the successful completion of the syndication was set € 175.0 million. Although the total amount of participation requests was more than the maximum amount of € 210.0 million, final amount was fixed at the maximum level.

Main purpose of the facility is to re-finance existing outstanding debt in relation to the existing syndicated loan signed on 31 July 2014 - € 40.6 million of Term Loan facility and € 65.0 million of Revolving Facility - and the furtherly lengthening average maturity of financial debt. The loan agreement was signed on 28 February 2016.

Renounce by Giuseppe Calì and Stefania Caterina Calì to the challenge of some resolutions of the Shareholders' Meeting and the Board of Directors

The Company informs that the shareholders Mr. Giuseppe Calì and Mrs. Stefania Caterina Calì, which had challenged certain resolutions of the Shareholders' Meeting of the Company taken on 30th April 2015 (see, on this respect, the press release dated 30th July 2015), have agreed to renounce the challenge brought.

Mr. Giuseppe Calì and Mrs. Stefania Caterina Calì took said decision after having compared with the Company, in the context of the judicial proceeding, the respective positions on a juridical ground. Thereafter, Mr. Giuseppe Calì and Mrs. Stefania Caterina Calì agreed on the fairness of the said resolutions taken by the Shareholders' Meeting of the Company.

E) Outlook

Referring to current fiscal year, Italian and Spanish economy are expected to grow respectively at a 1% and 2.7% YoY pace (source: consensus, Bain estimates, March 2017), with Italy lagging compared to the expected EU average.

In Italy, the ICT end user demand, both in the consumer and the business segment is expected stable after years of growth driven by mobility and smartphone. PC market will continue to be affected by volume reductions only partially counterbalanced by pricing stabilization connected to the shortage of components like memories and displays, increasingly absorbed by vendors of smartphone and consumer electronics. The IT 'Value' market is expected to grow mainly referring to datacenter solutions, software, cloud and cybersecurity.

Considering the distribution market, where Esprinet operates, it will grow at a moderate pace, confirming its capability to gaining share out of the total ICT market spending. The Italian operations positively integrated the recently acquired EDSLan and ITWay VAD as well as normalized the level of stock, being now focused on deploying the synergies arising from both the acquired competences and the other commercial initiatives presented in the industrial plan.

The trends of both Spanish ICT end user demand and distribution market (where Esprinet is active with its subsidiaries Esprinet Iberica and Vinzeo Technologies) are expected similar to what above-mentioned for Italy. Closed 2016 with the market leadership, which was missing by almost ten years, the Spanish operations are following the plan of focalization on value-added markets (i.e. IT Value and accessories) coupled by the cost optimization arising from to the integration of Vinzeo and ITWay Vad, with positive effects to be tangible both in the current year and in the next one.

Considering the industrial plan presented at the beginning of October 2016, for the current fiscal year of Italian operations, Esprinet expects grow of sales even due to the full consolidation of the acquisition made during 2016 (EDSLan and ITWay Vad). The overstock phenomenon is mostly disappeared, net of some punctual situations.

A noticeable price competition within many categories is still underway, while the plans of commercial innovation are starting to show the first positive results, benefitting the percentage gross margin, as expected by the management.

The initiatives of cost optimization are in track, showing its positive effects within 2017 and 2018.

Also for the Spanish operations Esprinet expects strong growth of sales, even thanks to the full consolidation of the acquisitions made during 2016 (Vinzeo and ITWay Vad). In line with what observed in Italy, the level of overstock of PC experienced in the first part of 2016 has almost disappeared, thus improving the stock rotation index and generating the return of many PC vendors proposing incentive plans to distributors who can support their growth in the high-end models.

Compared to the Italian market, a significant price competition is currently on-going even boosted by the higher share of the retailers' channel, while the re-focalization on higher margin business, like IT Value, accessories and the corporate channel, as well as the plans of commercial innovation are starting to show the first positive signs.

The integration of Vinzeo and ITWay VAD in the Group is on track, the arising synergies are expected to be significant both in 2017 and 2018.

All in all, the Groups confirms the 2018 targets of the Industrial Plan communicated in October 2016.

F) Dividend proposal

The Board of Directors will submit to the approval of the Shareholders Meeting the distribution of a dividend of € 0.135 for each ordinary share. The dividend shall be paid out from 10 May 2017 (ex-coupon no. 12 on 8 May 2017 and record date on 9 May 2017).

G) 2017 Shareholders' Meeting Call

The Ordinary and Extraordinary Meeting will be held at the Cosmo Hotel, Via Torri Bianche n. 4, Vimercate (MB), at 10:00 a.m. on 28 April 2017 (first call), and if necessary a second meeting will be called at 15 on 4 May 2017, to discuss the following:

Agenda

Ordinary Agenda

1. Financial Statement of Esprinet S.p.A. as at December 2016:
1.1 Approval of 2016 Financial Statement; Directors' Report on Operations, Statutory Auditors' Report, Independent Auditors' Report, presentation of the Consolidated Financial Statement of Esprinet Group as at 31 December 2016.
1.2 Allocation of income of the year.
2. Report on Remuneration. Resolutions on the first section of the Report on Remuneration pursuant to par. 6 of the art. 123-ter of the legislative decree 58/1998.
3. Resolutions on the Board of Directors composition; any relevant and corresponding resolutions.
4. Proposal for authorization of a buy-back plan of owned shares; correlated repeal of the authorization for the plan, or the unused portion of it, resolved during the Shareholders' Meeting of 4 May 2016.
5. Integration of fees for the legal accounting support of the Esprinet S.p.A. consolidated financial statement.

Extraordinary Agenda

1. Proposal for change of articles: 4, 5, 8, 11, 13, 16, 19 of the Company By Laws; any relevant and corresponding resolutions.

DECLARATION EX ART. 154-bis, paragraph 2 Legislative Decree n.58/1998 (T.U.F.)

The officer charged with the drawing up of the accounting documents of the company, Pietro Aglianò, declares that, in compliance with the provisions of paragraph 2 of Article 154 bis of Legislative Decree n.58/1998 (T.U.F.), the financial data shown in this press release corresponds to the findings resulting from accounting documents, books and accounting records.

Annex: Summary of economic and financial results (Group/Esprinet S.p.A.).

For further information:

Michele Bertacco

Esprinet S.p.A. – IR and Communications Director Tel. +39 02 40496.1 - [email protected]

Esprinet (Borsa Italiana: PRT) is engaged in the "B-to-B" distribution of technology products in Italy and Spain, with about 40.000 resellers served and 600 brands supplied. The 2016 turnover in excess of € 3 billion ranks the Company #1 in Italy and Spain and #4 in Europe.

Summary of main Group's results

Summary of main Group's results
(euro/000)	no tes	2016	%	2015	no tes	%	% var. 16/15	2014	no tes	%
P rofi t & Loss
Sales		3,042,330	100.0%	2,694,054		100.0%	13%	2,291,141		100.0%
Gross profit		163,895	5.4%	156,864		5.8%	4%	141,836		6.2%
EBITDA	(1)	43,072	1.4%	50,558		1.9%	-15%	45,139		2.0%
Operating income (EBIT)		38,566	1.3%	46,499		1.7%	-17%	41,086		1.8%
Profit before income tax		35,720	1.2%	42,247		1.6%	-15%	39,100		1.7%
Net income		26,870	0.9%	30,041		1.1%	-11%	26,813		1.2%
Fi nanci al data
Cash flow	(2)	30,820		33,378				30,080
Gross investments		11,710		5,731				3,593
Net working capital	(3)	102,322		21,905				58,627
Operating net working capital	(4)	102,046		34,512				77,431
Fixed assets	(5)	124,516		101,083				98,058
Net capital employed	(6)	212,535		111,692				144,588
Net equity		317,956		297,606				274,872
Tangible net equity	(7)	225,299		221,695				198,605
Net financial debt	(8)	(105,424)		(185,913)				(130,284)
Mai n i ndi cators
Net financial debt / Net equity		(0.3)		(0.6)				(0.5)
Net financial debt / Tangible net equity		(0.5)		(0.8)				(0.7)
EBIT / Finance costs - net		13.5		11.0				20.7
EBITDA / Finance costs - net		15.1		11.9				22.7
Net financial debt/ EBITDA		(2.4)		(3.7)				(2.9)
Operati onal data
N. of employees at end-period		1,327		1,016				969
Avarage number of employees	(9)	1,173		993				972
Earni ngs per share (euro)
- Basic		0.52		0.59			-12%	0.53
- Diluted		0.51		0.58			-12%	0.52

(1) EBITDA is equal to the operating income (EBIT) gross of amortisation and depreciation and accruals for risks and charges.

(2) Sum of consolidated net profit before minority interests and amortisation and depreciation.

(3) Sum of current assets, non-current assets held for sale and current liabilities, gross of short-term net financial position.

(4) Sum of trade receivables, inventory and trade payables.

(5) Non-current assets net of non-current financial assets.

(6) Equal to the sum of the net working capital plus fixed assets net of non-current liabilities except of financial liabilities.

(7) Equal to net equity less goodwill and intangible assets.

(8) Sum of borrowings and short term financial liabilities net of cash and cash equivalents, assets/liabilities for financial derivatives and financial receivables. (9) Average of the balance at period beginning and end of companies consolidated.

The 2016 economic and financial results and those of the relative periods of comparison have been measured by applying International Financial Standards ('IFRSs').

In the next table, in combination with IFRSs' defined measures, some 'alternative performance measures', not defined from IFRSs, are presented. These 'alternative performance measures', consistently presented in previous reports and not intended as substitute of IFRSs defined measures, are internally used by the management for measuring and controlling the Group's profitability, performance and financial position.

As required by the Guidelines ESMA / 2015/1415 ESMA (European Securities and Market Authority) issued under Article 16 of the ESMA Regulation, updating the previous recommendation CESR / 05-178b of CESR (Committee of European Securities Regulators) and adopted by Consob with Communication no. 0092543 of 12/03/2015, basis of calculation adopted are defined below the table.

Consolidated statement of financial position

(eu ro/000)	31/12/2016	related parties	31/12/2015	related parties
ASSETS
Non-cu rrent assets
Property, plant and equipment	15,284		12,130
Goodwill	91,189		75,246
Intangible assets	1,469		664
Investments in associates	39		47
Deferred income tax assets	11,931		8,347
Derivative financial assets	38		-
Receivables and other non-current assets	6,896	1,286	7,345	1,285
	126,846	1,286	103,779	1,285
Cu rrent assets
Inventory	328,886		305,455
Trade receivables	388,672	9	251,493	13
Income tax assets	6,175		3,490
Other assets	32,091	-	17,509	-
Cash and cash equivalents	285,933		280,089
	1,041,757	9	858,036	13
Di sposal grou ps assets	-		-
Total assets	1,168,603	1,295	961,815	1,298
EQUITY
Share capital	7,861		7,861
Reserves	282,430		258,626
Group net income	26,667		30,321
Grou p net equ i ty	316,958		296,808
Non-controlli ng i nterests	999		797
Total equ i ty	317,957		297,605
LIABILITIES
Non-cu rrent li abi li ti es
Borrowings	38,833		65,138
Derivative financial liabilities	6 6		224
Deferred income tax liabilities	6,100		4,757
Retirement benefit obligations	5,185		4,044
Debts for investments in subsidiaries	3,942		5,222
Provisions and other liabilities	3,020		2,495
	57,146		81,880
Cu rrent li abi li ti es
Trade payables	615,512	12	522,436	-
Short-term financial liabilities	141,885		29,314
Income tax liabilities	740		751
Derivative financial liabilities	483		195
Debiti per acquisto partecipazioni correnti	4,718		-
Provisions and other liabilities	30,162	-	29,634	-
	793,500	12	582,330	-
Di sposal grou ps li abi li ti es	-		-
Total li abi li ti es	850,646	12	664,210	-

Consolidated separate income statement

(euro/000)	2016	non-recurring	related parties*	2015	non-recurring	related parties*
Sales	3,042,330	-	15	2,694,054	-	25
Cost of sales	(2,878,435)	-	-	(2,537,190)	-	-
Gross profi t	163,895	-		156,864	-
Other income	2,838	2,838		-	-
Sales and marketing costs	(49,871)	-	-	(43,974)	-	-
Overheads and administrative costs	(78,296)	(4,754)	(3,782)	(66,391)	(657)	(3,611)
Operati ng i ncome (EBIT)	38,566	(1,916)		46,499	(657)
Finance costs - net	(2,847)	-	2	(4,243)	-	7
Other investments expenses/(incomes)	1	-		(9)	-
P rofi t before i ncome tax	35,720	(1,916)		42,247	(657)
Income tax expenses	(8,850)	1,411	-	(12,206)	292	-
Net i ncome	26,870	(505)		30,041	(365)
- of which attributable to non-controlling interests	203			(280)	(27)
- of which attributable to Group	26,667	(505)		30,321	(338)
Earnings per share - basic (euro)	0.52			0.59
Earnings per share - diluted (euro)	0.51			0.58

* Emoluments to key managers excluded.

Consolidated statement of comprehensive income

(euro/000)	2016	2015
Net income	26,870	30,041
Other comprehensive income:
- Changes in 'cash flow hedge' equity reserve	(79)	(157)
- Taxes on changes in 'cash flow hedge' equity reserve	17	43
- Changes in translation adjustment reserve	(1)	(10)
Other comprehensive income not to be reclassified in the separate income statement
- Changes in 'TFR' equity reserve	(139)	272
- Taxes on changes in 'TFR' equity reserve	30	(75)
Other comprehensive income	(172)	7 3
Total comprehensive income	26,698	30,114
- of which attributable to Group	26,499	30,371
- of which attributable to non-controlling interests	199	(257)

Consolidated statement of changes in equity

Consolidated statement of changes in equity
(euro/000)	Share capi tal	Reserves	Own shares	P rofi t for the peri od	Total net equi ty	Mi nori ty i nterest	Group net equi ty
Balance at 31 December 2014	7,861	253,268	(13,070)	26,813	274,872	2,193	272,679
Total comprehensi ve i ncome/(loss)	-	7 4	-	30,041	30,115	(257)	30,372
Change in equity by Celly group acquisition	-	(1,990)	-	-	(1,990)	(1,086)	(904)
Allocation of last year net income/(loss)	-	20,410	-	(20,410)	-	-	-
Dividend payment	-	-	-	(6,403)	(6,403)	-	(6,403)
Transacti ons wi th owners	-	18,420	-	(26,813)	(8,393)	(1,086)	(7,307)
Increase/(decrease) in 'stock grant' plan reserve	-	(1,662)	-	-	(1,662)	-	(1,662)
Assignment of Esprinet own shares	-	(9,985)	7,925	-	(2,060)	-	(2,060)
Increase/(decrease) in IAS 7 FTA reserve	-	(87)	-	-	(87)	(17)	(70)
Other variations	-	(59)	-	-	(59)	(36)	(23)
Variation in reserve on 40% Celly option	-	4,879	-	-	4,879	-	4,879
Balance at 31 December 2015	7,861	264,848	(5,145)	30,041	297,605	797	296,808
Total comprehensi ve i ncome/(loss)	-	(172)	-	26,870	26,697	199	26,498
Allocation of last year net income/(loss)	-	22,277	-	(22,277)	-	-	-
Dividend payment	-	-	-	(7,764)	(7,764)	-	(7,764)
Transacti ons wi th owners	-	22,277	-	(30,041)	(7,764)	-	(7,764)
Other variations	-	1 5	-	-	1 5	3	1 2
Balance at 31 December 2016	7,861	288,372	(5,145)	26,870	317,957	999	316,958

Consolidated net financial position

(euro/000)	31/12/2016	31/12/2015	Var.
Short-term financial liabilities	141,885	29,314	112,571
Current financial (assets)/liabilities for derivatives	483	195	288
Financial receivables from factoring companies	(1,492)	(2,714)	1,222
Other financial receivables	(5,596)	(507)	(5,089)
Cash and cash equivalents	(285,933)	(280,089)	(5,844)
Net current fi nanci al debt	(150,653)	(253,801)	103,148
Borrowings	38,833	65,138	(26,305)
Debts for investments in subsidiaries	8,660	5,222	3,438
Non-current financial (assets)/liabilities for derivatives	28	224	(196)
Other financial receivables	(2,292)	(2,696)	405
Net fi nanci al debt	(105,424)	(185,913)	80,489

Consolidated statement of cash flows

(eu ro/000)	2016	2015
Cash flow provi ded by (u sed i n) operati ng acti vi ti es (D=A+ B+ C)	34,413	74,058
Cash flow generated from operati ons (A)	40,986	50,357
Operating income (EBIT)	38,566	46,499
Income from business combinations	(2,838)	-
Depreciation, amortisation and other fixed assets write-downs	3,954	3,337
Net changes in provisions for risks and charges	171	(239)
Net changes in retirement benefit obligations	(271)	(316)
Stock option/grant costs	1,404	1,076
Cash flow provi ded by (u sed i n) changes i n worki ng capi tal (B)	3,447	39,034
Inventory	37,760	(51,746)
Trade receivables	(38,454)	24,490
Other current assets	(12,321)	(7,385)
Trade payables	18,354	70,447
Other current liabilities	(1,892)	3,228
Other cash flow provi ded by (u sed i n) operati ng acti vi ti es (C)	(10,020)	(15,333)
Interests paid, net	(644)	(1,038)
Foreign exchange (losses)/gains	(760)	(1,469)
Net results from associated companies Income taxes paid	9 (8,625)	(11) (12,815)
Cash flow provi ded by (u sed i n) i nvesti ng acti vi ti es (E)	(105,981)	(14,695)
Net investments in property, plant and equipment	(6,010)	(4,703)
Net investments in intangible assets	(1,098)	(136)
Changes in other non current assets and liabilities	73	(3,069)
Celly business combination	-	(1,990)
EDSlan business combination	(17,065)	-
Itway business combination	(8,731)	-
Vinzeo business combination	(73,150)	-
Own shares acquisition	-	(4,797)
Cash flow provi ded by (u sed i n) fi nanci ng acti vi ti es (F)	77,412	(4,448)
Medium/long term borrowing	-	15,000
Repayment/renegotiation of medium/long-term borrowings	(23,078)	(1,707)
Net change in financial liabilities	108,043	(9,795)
Net change in financial assets and derivative instruments	(7,328)	(1,397)
Deferred price Celly acquisition	(1,280)	(4,536)
Deferred price Vinzeo acquisition Deferred price Itway acquisition	4,718 3,957	- -
Option on 40% Celly sharesd	-	4,879
Dividend payments	(7,764)	(6,403)
Increase/(decrease) in 'cash flow edge' equity reserve	(61)	(114)
Changes in third parties net equity	205	(456)
Other movements	-	8 1
Net i ncrease/(decrease) i n cash and cash equ i valents (G=D+ E+ F)	5,844	54,915
Cash and cash equ i valents at year-begi nni ng	280,089	225,174
Net i ncrease/(decrease) i n cash and cash equ i valents	5,844	54,915
Cash and cash equ i valents at year-end	285,933	280,089

Esprinet S.p.A. statement of financial position.

(eu ro/000)	31/12/2016	related parties	31/12/2015	related parties
ASSETS
Non-cu rrent assets
Property, plant and equipment	11,464		9,958
Goodwill	10,626		10,626
Intangible assets	1,252		610
Investments in associates	-		9
Investments in others	92,420		85,688
Deferred income tax assets	1,975		2,368
Derivative financial assets	377		369
Receivables and other non-current assets	6,513 124,627	1,286 1,286	7,135 116,763	1,285 1,285
Cu rrent assets

Inventory Trade receivables	207,876 190,146	9	211,620 162,618	1 3
Income tax assets	4,543		3,296
Other assets	216,952	194,372	95,243	81,517
Cash and cash equivalents	80,109		205,993
	699,626	194,381	678,770	81,530
Non-cu rrent assets held for sale	-
Total assets	824,253	195,667	795,533	82,815

EQUITY
Share capital	7,861		7,861
Reserves	280,645		264,164
Net income for the period	12,738 301,244		22,943 294,968
Non-controlli ng i nterests
Total equ i ty	301,244		294,968
LIABILITIES
Non-cu rrent li abi li ti es
Borrowings	12,252		61,138
Derivative financial liabilities	-		224
Deferred income tax liabilities	2,354		2,248
Retirement benefit obligations	3,682		3,587
Provisions and other liabilities	1,685		1,745
	19,973		68,942
Cu rrent li abi li ti es
Trade payables	381,221		387,749	-
Short-term financial liabilities	108,779		26,197
Income tax liabilities	-		36
Derivative financial liabilities	428		195
Provisions and other liabilities	12,608	1,244	17,446	1324
	503,036	1,244	431,623	1,324
Total li abi li ti es	523,009	1,244	500,565	1,324
Total equ i ty and li abi li ti es	824,253	1,244	795,533	1,324

Esprinet S.p.A. separate income statement

(euro/000)	2016	non-recurring	related parties*	2015	non-recurring	related parties*
Sales	1,951,845	-	50,520	2,015,161	-	43,441
Cost of sales	(1,848,573)	-	(2,585)	(1,901,464)	-	(1,858)
Gross profi t	103,272	-		113,697	-
Sales and marketing costs	(30,204)	-	(1,438)	(29,457)	-	(1,198)
Overheads and administrative costs	(53,556)	(3,447)	(1,722)	(49,803)	(322)	(1,652)
Operati ng i ncome (EBIT)	19,512	(3,447)		34,437	(322)
Finance costs - net	(1,909)	-	1,144	(1,989)	-	766
Other investments expenses/(incomes)	-	-	-	(19)	-	-
P rofi t before i ncome tax	17,603	(3,447)		32,429	(322)
Income tax expenses	(4,865)	1,064	-	(9,486)	187	-
Net i ncome	12,738	(2,383)		22,943	(135)
- of which attributable to non-controlling interests	-			-
- of which attributable to Group	12,738	(2,383)		22,943	(135)