Basic Net SpA — Call Transcript 2018

Feb 19, 2018

Group BSSC et

CONFERENCE CALL - 19th February 2018

• Aggregated sales € 747 million, up 1.07%
• Consolidated direct sales € 184 million, up 1.05%
• EBITDA € 23 million or 16.9% of sales, up 7.2%
• Operating income (EBIT) € 17 million or 12.3% of sales, up 9.1%
• EBT € 15 million or 11.1% of sales, up 1%
• Net Financial Position € 61,5 million, an increase of € 12 million as compared to year-end 2016

• SEBAGO ACQUISITION

In July 2017 BasicNet has signed the agreement for the acquisition of Brand for a price of 14.2 USD million.

• BRIKO ACQUISITION

The acquisition has been formalized in August, with an advance payment of Euro 1 million out of an estimated final price of Euro 1.7 million, that will be settled in June 2019, based on target sales reached in the preceding 12 months.

• LANZERA DISPOSAL

Gain of Euro 200 thousand from the sale of the Lanzera® brand in June 2017.

Total Aggregated Sales

Euro/000

Euro/000

(million Euro)	31.12.2017	31.12.2016	Variances
Fatturato consolidato	183.507	181.607	1,0%
Vendite Dirette	135.583	135.183	0,3%
Royalties da ASL	36.085	34.968	3,1%
Royalties da ASSC	11.838	11.456	3,2%

Income Statement

Euro/000

	31/12/2017 Preliminary		31/12/2016 Actual		variances
Consolidated direct sales	135.583	100%	135.183	100%	400	0,3%
Cost of sales	(81.065)	-59,8%	(80.923)	-59,9%	(142)	-0,2%
GROSS MARGIN	54.518	40,2%	54.261	40,1%	258	0,5%
Royalties and sourcing commissions	47.924	35,3%	46.424	34,3%	1.500	3,2%
Other income	3.581	2,6%	2.226	1,6%	1.355	60,9%
Sponsorship and media costs	(24.627)	-18,2%	(24.285)	-18,0%	(341)	-1,4%
Personnel costs	(21.083)	-15,5%	(19.681)	-14,6%	(1.403)	-7,1%
Selling, general and administrative costs, royalties expenses and amortization	(43.691)	-32,2%	(43.703)	-32,3%	12	0,0%
EBIT	16.623	12,3%	15.241	11,3%	1.381	9,1%
Net financial income (charges)	(1.569)	-1,2%	(302)	-0,2%	(1.267)	-419,6%
EBT	15.054	11,1%	14.940	11,1%	114	0,8%

CONFERENCE CALL - 19th February 2018