B&C Speakers

Earnings Release • Mar 14, 2016

Informazione Regolamentata n. 0931-7-2016		Data/Ora Ricezione 14 Marzo 2016 13:36:33	MTA - Star
Societa'	:	B&C SPEAKERS
Identificativo Informazione Regolamentata	:	70671
Nome utilizzatore	:	BCSPEAKERSN01 - Pratesi
Tipologia	:	IRAG 01
Data/Ora Ricezione	:	14 Marzo 2016 13:36:33
Data/Ora Inizio Diffusione presunta	:	14 Marzo 2016 13:51:34
Oggetto	:	financial statements for the year 2015	B&C Speakers Board approves the draft
Testo del comunicato

Vedi allegato.

PRESS RELEASE

B&C Speakers S.p.A.

The Board of Directors approves the draft financial statements for the year 2015 - Record sales for the Group

• Consolidated revenues equal to Euro 36.59 compared to Euro 32.77 million for the same period in 2014); million (an increase of 11.65%
• Consolidated EBITDA equal to Euro 8.46 million (an increase of compared to Euro 7.51 million for the same period in 2014);
• Group profit equal to Euro 5.02 Euro 4.36 million for the same period in 2014); 5.02 million (an increase of 15.33 15.33% compared to
• Group net financial position positive and amounted to Euro 1.54 million (Euro 2.00 million as at 31 December 2014);
• Proposal to distribute a dividend to shareholders owned with coupon detachment date on 2 May 2016, record date on 3 May and payment date on 4 May 2016. of Euro 0.35 per share

Bagno a Ripoli (FI) 14 March 2016 of the leading international players in the marketing of professional electro statements and draft consolidated financial statements accordance with IFRS international acco – The Board of Directors of B&C Speakers S.p.A. field of design, production, distribution and electro-acoustic transducers approved the for the year 2015 accounting standards. d 12.57% , one acoustic Draft financial , prepared in

CONSOLIDATED FINANCIAL STATEMENTS AT 31 DECEMBER 2015

REVENUES

The economic trend in the year 2015 was characterised by strong corporate growth that allowed us to achieve a new company record in terms of sales with a consolidated value amounting to Euro 36.59 million.

Consolidated revenues made during 2015 reached Eu increase of about 11.65% compared to 2014. Euro 36.59 million, showing an ro

2015 exports remained at 2014 levels, continuing to account for 91% of the Group's turnover.

The result achieved in 2015 was driven primarily by the extremely important growth achieved in the Asian market, with an increase of 38% at Group level with annual sales of 9.25 million and an incidence of 25% over the total figure.

Performance in the European market, including Italy, was also positive and showed an increase of about 17%. This million, provides 50% of the Group's total sales. market, which achieved an overall value in 2015 of 18.16

Results in the North American market were also very positive and showed a growth of 11% to reach an annual figure of 6 million. The Latin American m a result that should be considered as fairly good considering the economic difficulties seen at the country level in Brazil. market was stable with arket

The very positive trend in orders from customers of the Parent company continued in 2015, with a calendar year total of Euro 35.63 million, up by 11% compared to the total figure in 2014. The order book value (of the Parent company) at the end of 2015 amounted to Euro 6.5 million, showing a slight decrease compared to the figure of 7.2 at the end of 2014. ear solidated

Consolidated revenues in the four quarters (2015 and 2014) are summarised in the table below.

Trend of consolidated revenues
(€ millions)	I° Quarter	II° Quarter	III° Quarter	IV° Quarter	Total
Net sales revenues 2015	8.62	9.90	8.68	9.39	36.59
Net sales revenues 2014	7.88	8.78	7.42	8.70	32.78
Change 2015 - 2014	9.4%	12.7%	17.0%	7.9%	11.6%

As can be seen from the graph below, the sales figures for 2015 showed growth throughout the year compared to the same periods in 2014.

Cost of Sales

This category includes raw materials (purchasing, processing by third parties and changes in inventories), the cost of personnel directly involved in the production process, transport costs and the costs for commissions payable, customs duties and other direct costs of lesser importance.

The cost of sales showed a fractional increase in its incidence over revenues moving from 58.35% in 2014 to 58.97% in 2015. This change was due essentially to (i) a slight increase in the costs of purchases of components made in direct labour costs which increased slightly more than the growth in revenues. The other components in cost of sales (transport costs, commissions payable and other costs) have substantially maintained the same proportion over rev the dollar area and (ii) revenues.

Indirect personnel

This category refers to costs of R&D staff, office personnel, top executives and workers not directly involved in the production process.

The cost of indirect staff in 2015 showed a lower growth compared to sales and its incidence actually dropped to 5.20% of sales compared to 5.32% at the end of 2014.

Commercial expenses

This category refers to costs for commercial consultancy, advertising and marketing, travel and subsistence and other minor charges relating to the comm Commercial expenses showed no significant changes compared to 2014. commercial sector.

Administrative and General

This category refers to the costs for maintenance and utilities, provision of services not directly linked to the production process, purchases with the production process, remuneration for directors, professionals, consultants and supervisory bodies, property rent, hire costs and other indirect costs of lesser importance. of goods not directly associated

Given the close monitoring by top manageme showed no significant changes compared to the previous year. Therefore their impact over revenues made a positive fall from 11.2% in 2014 to 10.9% in 2015. management, general and administrative costs nt, e

EBITDA and EBITDA margin

Due to the trends described above, th an increase of 12.57% compared to 2014. the EBITDA in 2015 amounted to Euro 8.46 million,

The EBITDA margin for 2015 is therefore equal to 23.11% of revenues, compared to 22.93% recorded in the same period of 2014. This increase is mainly due to higher manufacturing volumes, associated with the changes commented above.

EBIT and EBIT margin

The EBIT at the end of 2015 totalled Euro 7.63 million up by 15.60% compared to 2014.

Group Net Result and Net Financial Position

Group Net Result at the end of 201 percentage of 14% of consolidated revenues. 2015 amounted to Euro 5.02 million and represents a

The financial stability of the Group remains very good and despite the repayments on agreed loans, it is still positive at about Euro 1.54 million.

The Group's reclassified Income Statement for 2015 is shown in the table below

Economic trends - Group B&C Speakers
(€ thousands)	2015 YTD	Incidence	2014 YTD	Incidence
Revenues	36,588	100.00%	32,771	100.0%
Cost of sales	(21,577)	-58.97%	(19,121)	-58.3%
Gross margin	15,011	41.03%	13,650	41.7%
Other revenues	148	0.40%	90	0.3%
Cost of indirect labour	(1,898)	-5.19%	(1,744)	-5.3%
Commercial expenses	(827)	-2.26%	(809)	-2.5%
General and administrative expenses	(3,977)	-10.87%	(3,674)	-11.2%
Ebitda	8,457	23.11%	7,513	22.9%
Depreciation of tangible assets	(732)	-2.00%	(734)	-2.2%
Amortization of intangible assets	(72)	-0.20%	(109)	-0.3%
Writedowns	(78)	-0.21%	(68)	-0.2%
Earning before interest and taxes (Ebit)	7,575	20.70%	6,601	20.1%
Financial costs	(680)	-1.86%	(405)	-1.2%
Financial income	522	1.43%	438	1.3%
Earning before taxes (Ebt)	7,416	20.27%	6,634	20.2%
Income taxes	(2,440)	-6.67%	(2,102)	-6.4%
Profit for the year	4,977	13.60%	4,533	13.8%
Minority interest	0	0.00%	0	0.0%
Group Net Result	4,977	13.60% 0.13%	4,533	13.8% -0.5%
Other comprehensive result Total Comprehensive result	46 5,023	13.73%	(178) 4,355	13.3%
It should be noted that, starting with the interim report as at 30 September 2015, the
Group's management decided to adopt an arrangement for the Statement of
Comprehensive Income with classification by destination rather than by nature.
Therefore the statement of comprehensive income shows a different classification of
costs together with the identification of intermediate results in terms of EBITDA, EBIT,
EBT and net profit. This approach was adopted with the double aim of (i) aligning the
periodic financial disclosure with	management reporting	used	internally	by
management for decision decision-making and control purposes and (ii) improving the making
readability and effectiveness of infor mation	information in annual and interim reporting towards
third parties.
The statement of comprehensive income for 2014 was consequently also reclassified
to allow a uniform comparison of magnitudes and economic results. It should be noted
that, following the reclass reclassification of costs by destination, the restated EBITDA and ification

The statement of comprehensive income for 2014 was consequently also reclassified to allow a uniform comparison of magnitudes and economic results. It should be noted that, following the reclass EBIT for 2014 increased by Euro 20 thousand, related to bank charge costs classified in financial charges rather than in general and administrative costs. reclassification of costs by destination, the restated EBITDA and

SIGNIFICANT EVENTS SUBSEQUENT to 31 December 2015

Orders received from customers showed a very positive trend during the first two months of 2016; in fact, the Parent company received orders for Euro 8.5 million compared to 7.2 million in the first two months of 2015.

Other resolutions passed by the same Board of Directors

The Board has also made a proposal to the Shareholders' Meeting, already called for 26 April 2016, to provide a dividend of Euro 0.35 for each ordinary share held; the coupon detachment date will be on 2 May 2016, the payment on 4 May 2016. record date on 3 May and

The Financial Reporting Manager of B&C Speakers S.p.A., Francesco Spapperi, hereby certifies, pursuant to Art. 154 58/1998, that the accounting disclosures December 2015, as presented in this press release, are consistent with the company's accounting documents, books and records. 154-bis, paragraph 2 of Italian Legislative Decree No. relating to the figures for the year ended 31 ,

CONSOLIDATED STATEMENT OF FINANCIAL POSITION		31 December	31 December
(Values in Euro)		2015	2014
ASSETS
Fixed assets
Tangible assets		3,145,378	3,402,208
Goodwill		1,393,789	1,393,789
Other intangible assets		92,329	136,249
Investments in non controlled associates		50,000 50,000	-
Deferred tax assets		307,014	325,052
Other non current assets		152,766	219,334
	related parties	88,950	88,950
Other assets (TFM insurance)		303,405	254,012
Total non current assets		5,444,681	5,730,644
Currents assets
Inventory		8,812,521	8,018,696
Trade receivables		7,084,609	6,828,276
Tax assets		737,790	1,069,532
Other current assets		4,339,376	5,265,368
Cash and cash equivalents		1,495,913	4,082,370
Total current assets		22,470,209	25,264,242
Total assets		27,914,890	30,994,886

The table below shows the Consolidated Income Statement and Balance Sheet for the year 2015

		31 December 2015	31 December 2014
LIABILITIES
Equity
Share capital		1,072,541	1,086,030
Other reserves		3,283,847	4,201,715
Retained Earnings		8,879,546	7,926,561
Fair value reserve		(159,596)	(136,836)
Profit/(loss) for the year		5,022,801	4,355,103
Total equity attributable to shareholders of the parent		18,099,139	17,432,573
Minority interest		-	0
Total equity		18,099,139	17,432,573
Non current equity
Long-term borrowings		2,821,554	358,331
Severance Indemnities		660,765	641,535
Provisions for risk and charges		82,596	82,596
Deferred tax liabilities		33,127	43,533
Total non current liabilities		3,598,042	1,125,995
Current liabilities
Short-term borrowings		1,133,516	6,686,669
Trade liabilities		3,180,375	4,391,910
	related parties	0	13,896
Tax liabilities		936,917	548,453
Other current liabilities		966,901	809,286
Total current liabilities		6,217,709	12,436,318
Total Liabilities		27,914,890	30,994,886

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(Values in Euro)		2015 YTD	2014 YTD
Revenues		36,588,399	32,771,310
Cost of sales		(21,577,174)	(19,121,125)
Gross Margin		15,011,226	13,650,185
Other revenues		148,023	90,031
Cost of indirect labour		(1,897,617)	(1,744,391)
Commercial expenses		(827,163)	(809,015)
General and administrative expenses		(3,977,351)	(3,673,760)
	related parties	927,249	961,337
Ebitda		8,457,118	7,513,050
Depreciation of tangible assets		(732,007)	(734,303)
Amortization of intangible assets		(72,475)	(109,373)
Writedowns		(77,940)	(68,325)
Earning before interest and taxes		7,574,696	6,601,050
Financial costs		(680,225)	(404,593)
Financial income		521,962	437,899
Earning before taxes		7,416,433	6,634,355
Income taxes		(2,439,881)	(2,101,733)
Profit for the year (A)		4,976,552	4,532,623
Other comprehensive income/(losses) for the year that will not be
reclassified in icome statement:
Exchange differences on translating foreign operations		36,199	(154,759)
Actuarial gain/(losses) on DBO (net of tax)		10,049	(22,760)
Total other comprehensive income/(losses) for the year (B)		46,249	(177,520)
Total comprehensive income (A) + (B)		5,022,801	4,355,103
Profit attributable to:
Owners of the parent		4,976,552	4,532,623
Minority interest		-	-
Total comprehensive income atributable to:
Owners of the parent		5,022,801	4,355,103
Minority interest		-	-
B&C Speakers S.p.A.
B&C Speakers S.p.A. is an international leader in the design, production, distribution and marketing of C
professional electro-acoustic transducers (the main components in acoustic speakers for music, acoustic
commonly referred to as loudspeakers), supplied mainly to p professional audio system manufacturers rofessional

B&C Speakers S.p.A.

B&C Speakers S.p.A. is an international leader in the design, production, distribution and marketing of professional electro-acoustic transducers (the main components in acoustic speakers for music, commonly referred to as loudspeakers), supplied mainly to p (OEM). With 120 employees and approximately 10% of staff assigned to its Research and Development Department, B&C Speakers carries out all design, production, marketing and control activities at its C acoustic professional audio system manufacturers

headquarters in Florence. Most of its products are developed according to its key customers' specifications. B&C Speakers also operates in the US and Brazil through two subsidiaries carrying out commercial activities. orence. Tel.: +39 055/6572 303

B&C Speakers S.p.A.

Simone Pratesi (Investor Relator), Email: spratesi@bcspeakers.com

Fine Comunicato n.0931-7	Numero di Pagine: 11
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