Immsi Group: results at 30 September 2019

IMMSI GROUP: RESULTS AT 30 SEPTEMBER 20191   As of 30 September 2019, the Immsi Group registered the best nine-month period in the past nine years, revealing its continually improving performance.   Consolidated net sales 1,253.8 million euro, up 8.9% (1,151.6 €/mln at 30.09.2018)   Ebitda 192.2 million euro, up 9.1% (186.2 €/mln ex IFRS 16) (176.2 €/mln at 30.09.2018). Ebitda margin 15.3%   Ebit 99.8 million euro, up 8.1% (92.4 €/mln at 30.09.2018). Ebit margin 8%   Profit before tax 68.5 million euro, up 12.5% (68.9 €/mln ex IFRS 16) (60.9 €/mln at 30.09.2018)   Net profit including minority interests 32.8 million euro, up 12.4% (29.2 €/mln at 30.09.2018)   Consolidated net profit 16.4 million euro, up 10.1% (14.9 €/mln at 30.09.2018)   Adjusted net financial position2-795.8 €/mln, an improvement of 56.2 €/mln from -852 €/mln at 31.12.2018 and 25.9 €/mln from -821,7 €/mln at 30.09.2018   Capital expenditure 93.8 million euro, up 26.8% (74 €/mln at 30.09.2018)     Mantua, 13 November 2019 – At a meeting today chaired by Roberto Colaninno, the Board of Directors of Immsi S.p.A.(IMS.MI) examined and approved the interim report on operations as at and for the nine months to 30 September 2019.   Immsi Group financial and business performance at 30 September 2019   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 risks of an 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 socio-political 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 in the first nine months to 30 September 2019 totalled 1,253.8 million euro, up by 8.9% from 1,151.6 million euro in the year-earlier period. At constant exchange rates, consolidated net sales rose by 7.4%.   Immsi Group consolidated Ebitda amounted to 192.2 million euro, the best figure for the first nine months since 2007, with an increase of 9.1% from 176.2 million euro in the year-earlier period. The Ebitda margin was 15.3%, stable with the year-earlier period. Excluding the effects of IFRS 16, Ebitda at 30 September 2019 would have been 186.2 million euro.   Ebit was 99.8 million euro, an increase of 8.1% from 92.4 million euro at 30 September 2018. The Ebit margin was 8%, stable with the year-earlier period. Excluding the effects of IFRS 16, Ebit at 30 September 2019 would have been 99.2 million euro.   The Group posted a profit before tax of 68.5 million euro, an increase of 12.5% (68.9 million euro in the first nine months of 2018). Excluding the effects of IFRS 16, profit before tax at 30 September 2019 would have been 68.9 million euro.   Net profit including minority interests totalled 32.8 million euro, up 12.4% from 29.2 million euro in the year-earlier period.   Consolidated net profit was 16.4 million euro, an increase of 10.1% from 14.9 million euro at 30 September 2018.   Immsi Group net financial debt at 30 September 2019 (including the negative effects of 21.4 million euro from application of IFRS 16 and 9.8 million euro from the interim dividend distributed by Piaggio & C. S.p.A.) was 827 million euro. Adjusted net financial debt excluding the above effects stood at 795.8 million euro, an improvement of 56.2 million euro from 852 million euro at 31 December 2018 and an improvement of 25.9 million euro from 821.7 million euro at 30 September 2018.   In the first nine months of 2019, Immsi Group capital expenditure amounted to 93.8 million euro, an increase of 26.8% from 74 million euro in the year-earlier period.   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 September 2019   Industrial Sector: Piaggio Group   In the industrial sector, at 30 September 2019, the Piaggio Group reported a significant improvement in performance from the year-earlier period, with progress on all the main earnings indicators, an increase in net profit, higher capital expenditure and a reduction in debt.   At 30 September 2019, Piaggio Group consolidated net sales totalled 1,200.5 million euro (+9.8%); consolidated Ebitda was 188.8 million euro (+13.8%), with an Ebitda margin of 15.7%; Ebit was 99.5 million euro (+17.2%), with an Ebit margin of 8.3%; net profit rose by 26.7% to 46 million euro. Piaggio Group adjusted net financial debt[3] at 30 September 2019 stood at 366.5 million euro, an improvement of 38.6 million euro from 405.1 million euro at 30 September 2018 and an improvement of 62.7 million euro from 429.2 million euro at 31 December 2018.   In the first nine months of 2019, the Piaggio Group sold 479,200 vehicles worldwide, an increase of 2.1%.   Naval Sector: Intermarine S.p.A.   In the naval sector, at 30 September 2019 Intermarine S.p.A. reported consolidated net sales of 49.2 million euro, Ebitda of 5.2 million euro (Ebitda margin of 10.6%); Ebit of 2.6 million euro (Ebit margin 5.3%) and net profit of 0.6 million euro. Specifically, net sales consisted of 40.4 million euro in the Military Sector and 8.8 million euro in the Fast Ferries and Yacht division, relating largely to operations at the Messina shipyard and the Marine Systems division.   Real Estate and Holding sector Net sales in the real estate and holding sector totalled 4.1 million euro in the first nine months to 30 September 2019, 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 province of Cagliari, completed four showhomes and took the remaining 11 villas in the first batch to an advanced unfinished stage, to enable potential clients to select floorings and internal finishes. The company examined the possibility of leasing the showhomes in order to enable end customers, including investors, to become familiar with the product and related services on offer. Commercial operations are underway to identify possible national/international purchasers.   Significant events in and after the first nine months of 2019     Supplementing the information published above or at the time of approval of the 2019 first-half results (directors’ meeting of 2 September 2019), this section illustrates key events in and after the first nine months of 2019.   On 5 November 2019, the Piaggio Group presented a number of new products at the EICMA tradeshow in Milan. Key products in the motorcycle segment were the Aprilia RS 660 mid-range sports roadster, the Aprilia Tuono 660 concept and the Moto Guzzi V85TT Travel, an accessorised version of Moto Guzzi’s classic enduro. In scooters, the Group presented the new Piaggio Medley (on which the latest development in the Piaggio I-Get engine family makes its debut, in 125 cc and 150 cc versions), the Vespa Primavera Sean Wotherspoon (a special edition from one of the most creative and influential contemporary designers), the Vespa Racing Sixties special series and the Vespa Elettrica 70km/h scooter with motorcycle type-approval, which flanks the original 45km/h model.   * * *   Outlook   In the Industrial Sector, where the Piaggio Group is strengthening its position on the global markets, the Group is committed to: confirming its leadership position on the European two-wheeler market, taking full advantage of the expected recovery by further strengthening its scooter and motorcycle ranges; maintaining its current positions on the European commercial vehicles market by strengthening the sales network;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 and Aprilia offers;growing the penetration of commercial vehicles in India, in part through the introduction of new engine displacements.   From the technological viewpoint, the Piaggio Group will continue research on new solutions to current and future mobility problems, through the work of Piaggio Fast Forward (Boston) and new advances in design at the PADc (Piaggio Advanced Design center) in Pasadena.   At a more general level, the Group maintains its commitment – a characteristic of recent years and continuing in 2019 – to generate higher productivity through close attention to cost and investment efficiency, in compliance with its ethical principles.   In the Naval Sector (Intermarine S.p.A.), the last quarter of 2019 will see advances in production work on contracts, in order to strengthen the financial consolidation of recent years. In the Defence sector, the company is presenting minesweeper and patrol-boat projects to a number of foreign Navies, and is also monitoring the fleet modernisation requirements of the Italian Navy. The aim is to win new orders that would expand the order book and consequently optimise production capacity over the coming years.   In the Real Estate and Holding Sector, the Is Molas S.p.A. subsidiary is proceeding with commercial activities to identify possible purchasers, in Italy and abroad.1The results of operations, equity and financial figures for the year to 30 September 2019 reflect the effects of IFRS 16 on the accounting treatment of operating leases. For the purposes of comparison with the year-earlier period, which has not been restated in accordance with the new reporting standard, the most significant effects of the standard are highlighted in the comments on the individual items.   2Adjusted net financial position: Net financial position at 30 September 2019 net of 21.4 €/mln from application of IFRS 16 as from 1 January 2019 and net of 9.8 €/mln as a result of a change in the Piaggio & C. S.p.A. dividend distribution policy introduced in July 2019. 3Adjusted net financial position: Net financial position of the Piaggio Group at 30 September 2019 net of 19 €/mln from application of IFRS 16 as from 1 January 2019 and net of 19.6 €/mln as a result of a change in the dividend distribution policy introduced in July 2019.