Immsi Group: results at 30 September 2020

Despite the objective difficulties of the pandemic, the Immsi Group reported a net profit at 30 September 2020, and successfully reduced debt by more than 75 million euro from the end of June 2020. Compared with the year-earlier period, the third quarter of 2020 was very positive: net sales rose by over 2%, EBITDA by 21%, EBIT by 55%, and net profit more than doubled.  Consolidated net sales 1,041.9 million euro (1,253.8 €/mln at 30.09.2019)EBITDA 150.9 million euro (192.2 €/mln at 30.09.2019) EBITDA margin 14.5% (15.3% at 30.09.2019)EBIT 61.1 million euro (99.8 €/mln at 30.09.2019)EBIT margin 5.9% (8% at 30.09.2019)Profit before tax 33.6 million euro subject to tax amounting to 17.6 million euroNet profit including minority interests 16.1 million euro (32.8 €/mln at 30.09.2019)Consolidated net profit of 9.2 million euro (16.4 €/mln at 30.09.2019) Consolidated net financial position of the Immsi Group -823.7 €/mln, an improvement of 75.1 million euro from 898.8 €/mln at 30.06.2020 and an improvement of 3.3 million euro from 827 €/mln at 30.09.2019Capital expenditure 90.6 million euro (93.8 €/mln at 30.09.2019)Mantua, 12 November 2020 – 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 2020. Immsi Group financial and business performance at 30 September 2020 Consolidated net sales at 30 September 2020 amounted to 1,041.9 million euro, a reduction of 16.9% from 1,253.8 million euro at 30 September 2019 as a result of the lockdown, which led to the suspension of production and commercial operations for a number of weeks in many countries. Immsi Group consolidated EBITDA amounted to 150.9 million euro, down 21.5% from 192.2 million euro at 30 September 2019. The EBITDA margin was 14.5% (15.3% at 30 September 2019). Consolidated EBIT was 61.1 million euro (99.8 million euro at 30 September 2019). The EBIT margin was 5.9% (8% at 30 September 2019). Profit before tax was 33.6 million euro (68.5 million euro at 30 September 2019) and was subject to tax totalling 17.6 million euro. Net profit including minority interests totalled 16.1 million euro (32.8 million euro at 30 September 2019). Consolidated net profit was 9.2 million euro (16.4 million euro at 30 September 2019). Immsi Group net financial debt at 30 September 2020 stood at 823.7 million euro, an improvement of 75.1 million euro from debt of 898.8 million euro at 30 June 2020 arising largely from the quarter’s positive sales performance and prudent management of working capital at the Piaggio Group. The Immsi Group's net financial debt was 796.4 million euro at 31 December 2019 and 827 million euro at 30 September 2019.Immsi Group capital expenditure in 2020 amounted to 90.6 million euro (93.8 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 2020 Industrial Sector: Piaggio Group In the nine months to 30 September 2020, the Piaggio Group sold 353,900 vehicles worldwide, reporting consolidated net sales of 993.8 million euro. Consolidated EBITDA was 150.1 million euro, with an EBITDA margin of 15.1%; EBIT was 63.6 million euro, with an EBIT margin of 6.4%; net profit was 29.1 million euro. The Piaggio Group's operating expense in the first nine months totalled 222.3 million euro, a sharp reduction of 15.8% from 264.2 million euro in the year-earlier period, arising largely as a result of the mitigating action put in place since the end of the first quarter of 2020 to respond to the Covid-19 emergency. Piaggio Group net debt at 30 September 2020 stood at 444.8 million euro, an improvement of 83.7 million euro from 528.5 million euro at 30 June 2020, secured by a positive sales performance in the third quarter and prudent management of working capital. Naval Sector: Intermarine S.p.A. At 30 September 2020, the subsidiary Intermarine S.p.A. reported consolidated net sales of 46.8 million euro; EBITDA was 5.1 million euro. with an EBITDA margin of 10.9%; EBIT was 2.5 million euro, with an EBIT margin of 5.3%; net profit was 0.2 million euro. Specifically, net sales consisted of 35.9 million euro in the Military Sector and 10.9 million euro in the Fast Ferries and Yacht division, relating largely to operations at the Messina shipyard. Real Estate and Holding sectorThe Real Estate and Holding sector had net sales of 1.2 million euro at 30 September 2020. 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 confirmed 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 2020 Supplementing the information published above or at the time of approval of the 2020 first-half results (directors’ meeting of 2 September 2020), this section illustrates key events in and after the first nine months of 2019. On 19 October, the Piaggio Group and the European Investment Bank (EIB) signed a 7-year 30 million euro finance contract to fund the research and development projects set out in the investment plan, to be conducted at the Piaggio Group's Italian sites through 2021. The funding follows a previous loan agreement signed last year, taking the EIB's overall commitment to the Piaggio Group to 100 million euro. At the meeting held on 30 October to approve the financial statements at 30 September 2020, the Piaggio Group Board of Directors approved a plan to renovate the historic Moto Guzzi factory in Mandello del Lario, which celebrates its centenary next year. The project, awarded to world-famous US architect and designer Greg Lynn, involves a major restoration for the entire area, from the production floor to the offices and the museum wing, where Moto Guzzi models illustrating the company’s history since 1921 are on display. The meeting also announced the expansion of the Piaggio Group E-Mobility department, which develops core components for 2-, 3- and 4-wheel electric vehicles. New offices and workshops will be built in Pontedera and the organisational structure will be reinforced, to be composed of about 40 engineers specialising in electronics, mechanics and electrical technology. On 5 November, Piaggio Fast Forward (PFF) launched a series of pilot programs, under which it will join partners active in a variety of business sectors to test new applications for its revolutionary robot carrier, Gita, in tourist, residential, retail and last-mile-delivery environments.   Outlook Since the early months of 2020 a situation of macroeconomic instability has emerged with the spread of Covid-19, affecting economic activities initially in China and subsequently in the other countries. As reflected in the figures on world economic performance, this instability is having a significant impact on the global growth outlook, influencing general macroeconomic conditions and the financial and real estate markets, despite the decisions that have already been taken by the world authorities to support the recovery. It is still difficult to provide guidance for the final quarter of the year, however, as much depends on how the Covid-19 pandemic evolves following the upturn that began in Europe in October, and on government measures implemented to limit contagion and support the economy in the countries where the Group operates. In the Industrial Sector, within this general picture Piaggio will continue to work to meet its commitments and targets, while maintaining all the measures in place for management of the crisis caused by the pandemic for as long as necessary, and to implement a speedy and flexible response to any unexpected and difficult situations that might arise in the final months of 2020, thanks to an increasingly efficient cost structure. In the Naval Sector too, as regards the business and financial situation it is not currently possible to forecast the trend in the health emergency and the impact on the economy. Despite the difficult general situation, production will proceed on current contracts over the coming months and commercial operations will continue in all the company businesses, with a view to seizing favourable opportunities. Management also will continue to take all measures to contain costs and all necessary action to acquire new contracts in order to expand the order book and optimise production capacity for the coming years. In the Real Estate and Tourist Hospitality Sector, as for all the Group core businesses, it is difficult to forecast the possible trend in the health emergency. For Is Molas, it is not possible to forecast negative financial and business impacts, but the company is continuing its commercial activities to identify possible purchasers in Italy and abroad.