Immsi — Earnings Release 2018

Sep 3, 2018

Informazione Regolamentata n. 0368-35-2018		Data/Ora Ricezione 03 Settembre 2018 13:29:20	MTA
Societa'	:	IMMSI
Identificativo Informazione Regolamentata	:	108002
Nome utilizzatore	:	IMMSIN06 - Paroli
Tipologia	:	1.2
Data/Ora Ricezione	:	03 Settembre 2018 13:29:20
Data/Ora Inizio Diffusione presunta	:	03 Settembre 2018 13:29:21
Oggetto	:	IMMSI GROUP: 2018 HALF-YEAR FINANCIAL STATEMENTS
Testo del comunicato

Vedi allegato.

PRESS RELEASE

IMMSI GROUP: 2018 HALF-YEAR FINANCIAL STATEMENTS1

Consolidated net sales 774.1 million euro (775.2 €/mln in H1 2017) (at constant exchange rates 810 €/mln, +4.5%)

Ebitda 124.1 million euro (122.5 €/mln in H1 2017) Ebitda margin 16% (15.8% in H1 2017)

Ebit 67.5 million euro, up 12.3% (60.1 €/mln in H1 2017). Ebit margin 8.7% (7.8% in H1 2017)

Profit before tax 45.9 million euro, up 18.8% (38.6 €/mln in H1 2017)

Net profit including minority interests 22.3 million euro, up 9.8% (20.3 €/mln in H1 2017)

Consolidated net profit 11.4 million euro (11.3 €/mln in H1 2017)

Net financial position -843.2 million euro an improvement of 15.7 €/mln from -858.9 €/mln at 31 December 2017 and an improvement of 20.2 €/mln from -863.4 €/mln at 30 June 2017

Mantua, 03 September 2018 – At a meeting today chaired by Roberto Colaninno, the Board of Directors of Immsi S.p.A. (IMS.MI) examined and approved the half-year report on operations as at and for the six months to 30 June 2018.

Immsi Group financial and business performance at 30 June 2018

The Immsi Group is continuing its strategic focus on geographical expansion consistent with product strategies and with world macro-economic trends.

This management model significantly reduces the risk of excessive concentration of production and sources of income in a single country, and enables the Group to maximise returns in countries with the highest economic growth rates.

At the same time, on-going analysis of the latest international trade policies and current sociopolitical developments confirms that geographical diversification enables the Group to meet the growing demand for quality among all the customers of its subsidiaries without increasing production costs, while simultaneously improving time to market.

Consolidated net sales for the first six months of 2018 amounted to 774.1 million euro (775.2 million euro in the year-earlier period). At constant exchange rates, consolidated net sales would have been 810 million euro, an increase of 4.5% on the year-earlier period.

Immsi Group consolidated Ebitda amounted to 124.1 million euro, an improvement of 1.3% from 122.5 million euro in the first half of 2017. The Ebitda margin was 16% (15.8% in the first half of 2017).

¹ As from 1 January 2018, the Immsi Group has applied IFRS 15 (Revenue from Contracts with Customers). In this press release, the 2017 half-year figures have been re-stated to permit comparison with the 2018 half-year figures.

Ebit was 67.5 million euro, an increase of 12.3% from 60.1 million euro in the year-earlier period. The Ebit margin also improved, to 8.7% (7.8% in the first half of 2017).

The Group posted a profit before tax for the first half of 2018 of 45.9 million euro, an increase of 18.8% (38.6 million euro in the year-earlier period).

Net profit including minority interests totalled 22.3 million euro, up 9.8% (20.3 €/mln for the first half of 2017).

Consolidated net profit was 11.4 million euro (11.3 million euro in the year-earlier period).

Immsi Group net financial debt at 30 June 2018 stood at 843.2 million euro, an improvement of 15.7 million euro from -858.9 million euro at 31 December 2017 and an improvement of 20.2 million euro from -863.4 million euro at 30 June 2017.

Immsi Group human resources at 30 June 2018 numbered 7,344 employees worldwide. The figure includes the Group's 3,798 Italian employees, unchanged from the end of 2017.

The Group's operations present seasonal variations in sales over the course of the year, especially in the industrial sector.

Performance of the Immsi Group businesses at 30 June 2018

Industrial Sector: Piaggio Group

In the industrial sector, in the first half of 2018 the Piaggio Group reported an improvement in performance from the year-earlier period, with progress on all the main earnings indicators and a reduction in debt.

Piaggio Group consolidated net sales totalled 729.6 million euro, for growth of 1.2%; consolidated Ebitda was 116.6 million euro, up 2.3%, with an Ebitda margin of 16%. Ebit was 61.9 million euro, up 16.8%, with an Ebit margin of 8.5%; net profit was 26.7 million euro, for growth of 24% from the first half of 2017.

Net financial debt at 30 June 2018 stood at 431.4 million euro, an improvement of 20.6 million euro from 452 million euro at 31 December 2017 and an improvement of 23.3 million euro from 454.6 million euro at 30 June 2017.

In the first half of 2018, the Piaggio Group sold 304,000 vehicles worldwide, an increase of 8.3%.

Naval Sector: Intermarine S.p.A.

In the naval sector, Intermarine S.p.A. reported consolidated net sales of 42.4 million euro for the first half of 2018; Ebitda was 9 million euro, with a 21.3% Ebitda margin; Ebit was 7.4 million euro, with a 17.5% Ebit margin; net profit was 4.6 million euro, with a return of 10.8% on net sales. Intermarine net financial debt at 30 June 2018 stood at 47.4 million euro, an improvement of 7.7 million euro from 30 June 2017.

Real Estate and Holding sector

Net sales in the real estate and holding sector totalled 2 million euro for the first half to 30 June 2018, an improvement of 2.7% from the year-earlier period.

The subsidiary Is Molas S.p.A., which manages the Is Molas Golf Resort project in the Sardinian province of Cagliari, substantially completed the first lot of residences and initial urbanisation

works. During the period, the 4 finished showhomes were delivered, as well as the remaining 11 residences in an advanced stage of construction to enable future buyers to choose the finishes.

Commercial operations are underway to identify possible national/international purchasers.

Significant events in and after the first half of 2018

During the conference call with analysts on 27 July 2018 after the approval of the half-year financial statements, Piaggio Group top management confirmed its full-year guidance, projecting Ebitda of approximately 200 million euro (up from 192.3 million euro in the year to 31 December 2017), and a net financial position of around 430 million euro, down from 446.7 million euro at 31 December 2017.

On 27 August 2018, the Piaggio Group announced that production of the Vespa Elettrica would commence in September at its Pontedera facility, in line with the plans presented at EICMA 2017. It will be possible to book the first Vespa Elettrica scooters at the beginning of October, online only through a special website, with innovative all-inclusive financial conditions available in addition to traditional purchasing systems. The Vespa Elettrica will be brought gradually on to the market from the end of October, with full marketing commencing in November, to coincide with the EICMA 2018 motorcycle show in Milan, starting in Europe, and then in the USA and Asia as from early 2019.

In the second quarter of 2018, the Piaggio Group arranged a liability management transaction on the "Eur 250 million Piaggio 4.625% due 2021" bond, to refinance the loan at better conditions. Specifically, at the beginning of April 2018 Piaggio & C. S.p.A. exercised the call option on the bond issued in April 2014 for an overall total of 250 million euro, due 30 April 2021. On 18 April 2018, it issued a high-yield bond (with the same characteristics as the 2014 instrument), for an amount of 250 million euro, due 30 April 2025.

The repayment schedule for the bonds issued by the Group envisages repayments totalling 9.7 million euro by 30 June 2019 and 10.4 million euro by 30 June 2020.

* * *

Outlook

In the industrial sector (Piaggio Group), against a strengthening on global markets, from a commercial and industrial viewpoint the Group is committed to:

• confirming its leadership position on the European two-wheeler market, taking full advantage of the expected recovery through:
• further strengthening of its product range;
• maintenance of current positions on the European commercial vehicle market;
• consolidating its presence in Asia Pacific, by exploring new opportunities in countries in the region, with a particular focus on the premium segment of the market;
• increasing sales on the Indian scooter market thanks to the Vespa offer and the Aprilia SR;
• growing the penetration of commercial vehicles in India, in part through the introduction of new engine displacements.

At a more general level, the Group maintains its commitment – a characteristic of recent years and continuing in 2018 – to generate higher productivity through close attention to cost and investment efficiency, in compliance with its ethical principles.

In the naval sector, during 2018 Intermarine S.p.A.:

• will continue positive management of current orders in order to consolidate the improvement in its financial position over the last few years;

• will maintain intense international commercial activity, with a specific focus on Asia and Europe;
• will pursue every opportunity to contain direct and indirect costs.

* * *

The manager in charge of preparing the company accounts and documents, Andrea Paroli, certifies, pursuant to paragraph 2 of art. 154-bis of the Consolidated Law on Financial Intermediation, that the accounting disclosures in this statement correspond to the accounting documents, ledgers and entries.

This press release may contain forward-looking statements relating to future events and Immsi Group business and financial results. By their nature, these statements are subject to inherent risks and uncertainties, since they relate to events and depend on circumstances that may or may not occur or exist in the future. Actual results may differ materially from those expressed in such statements as a result of a variety of factors.

This press release contains a number of indicators that, though not yet contemplated by the IFRS ("Non-GAAP Measures"), are based on financial measures envisaged by the IFRS. These indicators – presented in order to assist assessment of the Group's business performance – should not be considered as alternatives to those envisaged by the IFRS and are consistent with those in the Immsi Group 2017 Annual Report and quarterly and half-year reports. Furthermore, since determination of such indicators is not specifically regulated by the IFRS, the methods used may not coincide with those adopted by other companies/groups, and consequently the indicators in question may not be comparable. Specifically, the following alternative performance indicators are used:

• EBITDA: earnings before amortisation and impairment losses on property, plant and equipment and intangible assets, as reflected in the income statement;
• Net financial debt: this reflects financial liabilities (current and non-current), less cash and cash equivalents, and other current financial receivables. Determination of net financial debt does not include other financial assets and liabilities arising from measurement at fair value of derivatives designated as hedges, fair value adjustments of the related hedged items and interest expense accrued on loans received. The schedules in the Immsi Group halfyear report as at and for the six months to 30 June 2018 include a table illustrating the composition of net financial debt. In compliance with the CESR "Recommendation for consistent implementation of the European Commission regulation on prospectus" of 10 February 2005, the indicator as formulated reflects the values monitored by Group management.

In preparing the half-year report as at and for the six months to 30 June 2018, the Immsi Group applied the accounting policies used in preparing the consolidated financial statements as at and for the year ended 31 December 2017 with the exception of the adoption as from 1 January 2018 of IFRS 15 "Revenue from contracts with customers".

Immsi S.p.A. said that the half-year report as at and for the six months to 30 June 2018 will be available to the public at the company registered office, in the "eMarket STORAGE" authorised storage mechanism at and on the issuer's website www.immsi.it (section "Investors/Financial Reports/2018") as required by law.

The Immsi Group reclassified consolidated income statement and reclassified consolidated statement of financial position are set out below. In compliance with the Instructions to the Regulation for markets organised and managed by Borsa Italiana S.p.A. section IA.2.6, the reclassified schedules are not subject to auditing by the independent auditors.

For further information:

Immsi Group Press Office Director Diego Rancati Via Broletto, 13 - 20121 Milan – Italy Tel. +39 02.319612.19 E-mail: diego.rancati@immsi.it;

Image Building Tel. +39 02 89011300 E-mail: immsi@imagebuilding.it Immsi Group Investor Relations Andrea Paroli P.zza Vilfredo Pareto, 3 46100 Mantua (IT) Tel. +39.0376.2541 E-mail: andrea.paroli@immsi.it

Immsi Group reclassified consolidated income statement

774,071	100%	775,246	100%	-1,175	-0.2%
					1.2%
					-1.5%
122,468	15.8%	123,164	15.9%	-696	-0.6%
56,474	7.3%	54,148	7.0%	2,326	4.3%
12,178	1.6%	15,170	2.0%	-2,992	-19.7%
124,097	16.0%	122,517	15.8%	1,580	1.3%
21,431	2.8%	24,258	3.1%	-2,827	-11.7%
0	-	0	-	0	-
35,138	4.5%	38,124	4.9%	-2,986	-7.8%
67,528	8.7%	60,135	7.8%	7,393	12.3%
404	0.1%	637	0.1%	-233	-
15,202	2.0%	11,802	1.5%	3,400	28.8%
37,235	4.8%	33,927	4.4%	3,308	9.8%
45,899	5.9%	38,647	5.0%	7,252	18.8%
					28.7%
					9.8%
					-
22,301	2.9%	20,316	2.6%	1,985	9.8%
10,901	1.4%	9,017	1.2%	1,884	20.9%
11,400	1.5%	11,299	1.5%	101	0.9%
	30.06.2018 439,103 132,699 23,598 22,301 0	56.7% 17.1% 3.0% 2.9% -	30.06.2017* 433,812 134,731 18,331 20,316 0	56.0% 17.4% 2.4% 2.6% -	Change 5,291 -2,032 5,267 1,985 0

Immsi Group reclassified consolidated statement of financial position

In thousands of euro	30.06.2018	in %	31.12.2017	in %	30.06.2017	in %
Current assets:
Cash and cash equivalents	201,495	9.1%	138,949	6.8%	225,384	10.0%
Financial assets	0	0.0%	0	0.0%	0	0.0%
Operating assets	605,057	27.3%	484,439	23.7%	573,894	25.6%
Total current assets	806,552	36.4%	623,388	30.5%	799,278	35.6%
Non-current assets:
Financial assets	0	0.0%	0	0.0%	0	0.0%
Intangible assets	825,356	37.3%	826,198	40.5%	833,959	37.2%
Property, plant, equipment	296,557	13.4%	307,343	15.1%	319,457	14.2%
Other assets	284,411	12.9%	284,650	13.9%	291,102	13.0%
Total non-current assets	1,406,324	63.6%	1,418,191	69.5%	1,444,518	64.4%
TOTAL ASSETS	2,212,876	100.0%	2,041,579	100.0%	2,243,796	100.0%
Current liabilities:
Financial liabilities	467,914	21.1%	426,527	20.9%	504,209	22.5%
Operating liabilities	692,541	31.3%	577,028	28.3%	671,341	29.9%
Total current liabilities	1,160,455	52.4%	1,003,555	49.2%	1,175,550	52.4%
Non-current liabilities:
Financial liabilities	576,812	26.1%	571,342	28.0%	584,521	26.1%
Other non-current liabilities	96,455	4.4%	95,993	4.7%	106,104	4.7%
Total non-current	673,267	30.4%	667,335	32.7%	690,625	30.8%
liabilities
TOTAL LIABILITIES	1,833,722	82.9%	1,670,890	81.8%	1,866,175	83.2%
TOTAL SHAREHOLDERS'	379,154	17.1%	370,689	18.2%	377,621	16.8%
EQUITY
TOTAL LIABILITIES AND SHAREHOLDERS'	2,212,876	100.0%	2,041,579	100.0%	2,243,796	100.0%
EQUITY

^* The figures for the first half of 2017 have been restated to take account of application of IFRS 15