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Civitanavi Systems Earnings Release 2023

Nov 7, 2023

4157_bfr_2023-11-07_d1048202-6891-4c19-b266-a08ddc36860a.pdf

Earnings Release

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Informazione
Regolamentata n.
2464-99-2023
Data/Ora Inizio
Diffusione
07 Novembre 2023
14:58:53
Euronext Milan
Societa' : CIVITANAVI SYSTEMS
Identificativo
Informazione
Regolamentata
: 182987
Nome utilizzatore : CIVITANAVIN01 - Galletti
Tipologia : REGEM
Data/Ora Ricezione : 07 Novembre 2023 14:58:52
Data/Ora Inizio
Diffusione
: 07 Novembre 2023 14:58:53
Oggetto : Board of directors approves operating
Continuing growth in aerospace and
defence +79%. Guidance confirmed.
revenues for the first nine months of 2023.

Testo del comunicato

Vedi allegato.

PRESS RELEASE

CIVITANAVI SYSTEMS S.P.A. BOARD OF DIRECTORS APPROVES OPERATING REVENUES FOR THE FIRST NINE MONTHS OF 2023 CONTINUING GROWTH IN AEROSPACE AND DEFENCE +79% GUIDANCE CONFIRMED

  • Total Operating revenues: EUR 32.6 million, +64% compared to EUR 19.8 million recorded in the first nine months of 2022;
  • Booking of EUR 32.1 million as of 30 September 2023 and EUR 34.5 million as at the date of this press release;
  • Guidance 2023 confirmed: expected total revenues in the EUR 42M EUR 46M range and EBITDA adjusted margin to roughly 29%, in line with what was communicated to the market during the approval of Civitanavi Systems S.p.A.'s Budget 2023.

Pedaso (FM), November 7th , 2023 –- Civitanavi Systems S.p.A. (EURONEXT MILAN: CNS), a company active in the design, development and production of inertial navigation and stabilization systems, announces that the Board of Directors, which met today, approved its Operating Revenues as of September 30th , 2023.

Andrea Pizzarulli, CEO of Civitanavi Systems, commented "The positive trend continues, allowing us to present the market with exceptional results also in this third quarter with operating revenues up 64%. This extraordinary performance is due in particular to the further development of the Aerospace and Defence division, that thanks to a solid sales strategy which led to important commercial agreements with leading international companies brought meaningful contribution. We are approaching the end of the year with the expected trend and the current results allow us to confirm the targets announced to the market through the guidance, and for the end of 2023 to reach total revenues in the EUR 42M-EUR 46M range".

OPERATING REVENUES AS OF SEPTEMBER 30th 2023

Operating Revenues as of September 30th, 2023 stood at EUR 32.6 million, up 64% compared to EUR 19.8 million recorded in the first nine months of 2022.

Operating revenues net of change in inventories of finished and semi-finished goods increased by 63% in the first nine months of 2023 compared to the same period in 2022. The significant increase is mainly driven by the sale of goods, which more than doubled compared to the same period in the previous year (up 103%), thanks to the drive of the Aerospace and Defense and Industrial divisions.

Revenue stream related to engineering services records an increase compared to the first half year 2023 with an incidence which increases from 8% to 12% on Operating revenues net of change in inventories

Civitanavi Systems S.p.A. Headquarters: Via del Progresso 5, 63827 Pedaso (FM) - ITALY Rome Office: Via Pontina Vecchia km 34, 00040 Ardea (RM) | Naples Office: Via G. Pascoli 7, 80026 Casoria (NA) Turin Office: Corso Francia 35, 10138 Torino (TO) – ITALY VAT n. IT01795210432 | Phone: +39 0733 773648 | Fax: +39 0733 1997156 Email: [email protected] | Pec: [email protected] www.civitanavi.com

of finished and semi-finished goods. Operating revenues follow the expected trend and allow to confirm what was communicated to the market during the approval of Budget 2023 for Civitanavi Systems S.p.A. (which took place on 22 December 2022), based on the information available to date.

The results achieved during the quarter are characterised by a solid and stable growth and consolidate the Group's position in the inertial stabilisation and navigation systems sector globally.

It is specified that the subsidiary in UK, being in a start up phase, has not reported any operating revenues, which are all in charge of Civitanavi Systems S.p.A..

BOOKING 2023 – RECEIVED ORDERS

As of September 30th , 2023, Booking amounted to EUR 32.1 million, up 11% compared to September 30th , 2022.

Booking represents an indicator of the growth of Civitanavi Systems and shows the evolution recorded by the orders acquired within the period, whether or not they were fulfilled within the same (so-called "Booking").

As of November 7th , 2023, orders received amounted to EUR 34.5 million, up by 13,5% compared to the booking recorded in the same period of 2022 (communicated on October 28th, 2022) confirming the Group's growth trend.

The Group remains confident about long-term demand trends in its target market due to Civitanavi's specific competitive characteristics.

OPERATING REVENUES BY BUSINESS AREA

During the first nine months of fiscal year 2023, Civitanavi Systems achieved an excellent performance, in particular Aerospace and Defence contributed 79% of Operating Revenues net of change in inventories of finished and semi-finished goods and in Industrial with a steady presence of 19%.

In Euro thousands As of
September
30th 2023
% of 2023
total
As of
September
30th 2022
% of 2022
total
Changes Changes
%
Aeronautics 3,315 11% 4,800 26% (1,485) (31%)
Land defence 1,643 5% 1,123 6% 520 46%
Space 7,963 26% 2,909 16% 5,054 174%
Other (Naval, Submarine, Guidance) 11,011 36% 4,505 24% 6,506 144%
Total Aerospace and Defence 23,932 79% 13,337 72% 10,595 79%
Industrial 5,712 19% 4,624 25% 1,088 24%
Other 602 2% 645 3% (43) (7%)
Total Operating revenues net of the change in
FP/SFP inventories
30,246 100% 18,606 100% 11,640 63%
Change in FP and SFP inventories 2,362 1,222 1,140 93%
Total Operating Revenues 32,608 19,828 12,780 64%

Growth is confirmed in both divisions: A&D reports revenues up 79% from the same period in the previous year, while the Industrial division achieves 24% growth, registering a recovery from the slowdown noted in 2022.

REVENUES BY GEOGRAPHICAL AREA

In Euro thousands As of
September
30th 2023
% of 2023
total
As of
September
30th 2022
% of 2022
total
Changes Changes
%
Italy 3,224 11% 2,482 13% 742 30%
EMEA (except Italy) 22,886 76% 11,267 61% 11,619 103%
APAC 3,684 12% 3,601 19% 83 2%
USA 452 1% 1,256 7% (804) (64%)
Rest of the World 0 0% 0 0% 0 0%
Total Operating revenues net of the change in
FP/SFP inventories
30,246 100% 18,606 100% 11,640 63%
Change in FP and SFP inventories 2,362 1,222 1,140 93%
Total Operating revenues 32,608 19,828 12,780 64%

As of September 30th, 2023, revenues generated in Italy amounted to EUR 3.2 million up 30% from the same period in 2022. The result is driven mainly by revenues from the Aerospace and Defence division. The Group believes it is strategic to maintain a portion of its business in the domestic market, with the international market remaining the reference market.

In the EMEA area (except Italy), as of September 30th , 2023, revenues amounted to EUR 22.9 million up 103% compared to EUR 11.3 million in the same period of 2022. Once again, growth is driven by the development of the Aerospace and Defence and Industrial divisions.

As regards the APAC region, as of September 30th, 2023, there was a slight growth of 2% to EUR 3.7 million compared to EUR 3.6 million in the same period last year.

Finally, the USA market, shows an improvement over previous quarters with sales of EUR 452 thousand, although still down from the result of the same period in the previous year, registering a significant narrowing in sales (down 64%).

***

Declaration of the Manager in charge of drawing up the corporate accounting documents

Letizia Galletti, as the manager in charge of drawing up the corporate accounting documents, hereby declares - pursuant to paragraph 2, article 154-bis of Legislative Decree no. 58/1998 ("Consolidated Law on Finance") - that the accounting information contained in this press release corresponds to the documented results, books and accounting records.

Civitanavi Systems S.p.A.

Headquarters: Via del Progresso 5, 63827 Pedaso (FM) - ITALY Rome Office: Via Pontina Vecchia km 34, 00040 Ardea (RM) | Naples Office: Via G. Pascoli 7, 80026 Casoria (NA) Turin Office: Corso Francia 35, 10138 Torino (TO) – ITALY VAT n. IT01795210432 | Phone: +39 0733 773648 | Fax: +39 0733 1997156 Email: [email protected] | Pec: [email protected] www.civitanavi.com

***

The press release is available in the Investors section of the Company website https://www.civitanavi.com/investors/comunicati-stampa/

***

Civitanavi Systems, born as a start-up in 2012, is one of the main players in the design, development and production of inertial navigation and stabilization systems used in the aerospace and defense sectors in space, terrestrial, aeronautical, naval and industrial, mining and oil & gas. The Company vertically provides high accuracy systems, designed and manufactured with methods, techniques and algorithms based on FOG (Fiber Optic Gyroscope) and MEMS (Micro Electro Mechanical Systems) technology, also integrated with devices for satellite navigation. Today it carries out its activities in Pedaso (FM), in Ardea (RM), in Casoria (NA) in Turin (TO) and in Filton, Bristol, counting on a staff of around 170 employees in Italy and UK.

Investor Relations Letizia Galletti Phone: +39 0733773648 [email protected] Media Relation Image Building Via Privata Maria Teresa, 11 20123 – Milano Phone: +39 02 89011300 [email protected]