SergeFerrari Group — Earnings Release 2018

Mar 7, 2019

2018 RESULTS

ORGANIC GROWTH OF 4.6% AT CONSTANT EXCHANGE RATES, IN LINE WITH THE STRATEGIC PLAN

2018 EARNINGS IMPACTED BY MATERIAL NON-RECURRING ITEMS

€'000	2018	2017
Revenues	184,904	172,139
Adjusted EBITDA 1	10,812 2	14,151
FBIT	2,829	5,853
Income after tax	1,806	3,456
Net income/(loss), Group share	(123)	2,780
Shareholders' equity, Group share	91,201	92,551

1

Press release

During 2018, the Group:

• continued and finalized organizational adjustments in the sales, industrial and innovation segments of its operations, in order to support expected growth over the coming years;
• implemented an action plan focusing its resources on four priority markets (tensile architecture, solar protection, modular structures, and marine and furniture).

These decisions gave rise to non-recurring expenses of $E2.1$ million (abandonment of development projects, inventory impairment, organization transformation costs) over the financial year. 2018 EBIT therefore came to $\epsilon$ 2.9 million compared to $\epsilon$ 5.9 million the previous year.

Income after tax was €1.8 million.

Allowing for the impact of the shutdown of Vinyloop operations and the resulting non-recurring loss, the Group posted a net loss, Group share of €0.1 million for 2018.

At December 31, 2018, gross cash and cash equivalents amounted to €25.1 million versus gross debt of €24.5 million, resulting in net cash of $€0.6$ million, a clear improvement from the June 30, 2018 position $(\in 7.7$ million cash generated during H2 2018, twice the amount generated in H2 2017).

Outlook

After a period of necessary structuring, and focusing on its four buoyant priority markets, the management team, now complete, moves into 2019 with ambition determined to reap the benefits of the investments made over the past few years.

In an uncertain economic environment, the Group is aiming at organic growth (at constant exchange rates) of over 4.5% in 2019, as set out in the SF2020 strategic plan. Year-to-date revenues at February 28, 2019 are in line with this target, thus confirming the trend already observed over three consecutive quarters. As stated in prior releases, Serge Ferrari's key priorities are improving operating profit margins, focusing on product development projects ensuring faster time-to-market, improving industrial efficiency and appropriate sizing of capacity investments.

General Meeting

At the General Meeting scheduled for May 16, 2019, the Group will request shareholder approval of a dividend of €0.05 per share to be paid out on June 6, 2019.

Calendar

Q1 2019 revenues, April 25, 2019 after market close

General Meeting: May 16, 2019, 5.00pm

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