Immsi - Approves 2006 Draft Financial Statements

Mon, 26/03/2007 - 02:00

Board of Directors meeting today

IMMSI GROUP APPROVES 2006 DRAFT FINANCIAL STATEMENTS
NET SALES € 1,708.8 MLN (+10.4% YoY)
EBITDA € 180.8 MLN, EBITDA MARGIN 10.6% (+4.8% YoY)
NET PROFIT € 65.6 MLN FROM € 8.4 MLN IN 2005
NET DEBT € 414.3 MLN (down by € 96.6 mln from 31.12.05)

 

PARENT COMPANY IMMSI S.P.A.:
NET PROFIT € 28 MLN
PROPOSED DIVIDEND € 0.03 PER SHARE

 

Milan, 26 March 2007 – At a meeting today chaired by Roberto Colaninno, the Board of Directors of IMMSI S.p.A. examined and approved the 2006 draft financial statements, to be presented at the Shareholders’ Meeting called for 27 April 2007 (first call) and 9 May 2007 (second call).

 

During 2006, the IMMSI Group continued normal operations in its core businesses.

 

Specifically:

 

  • in the real estate business, work was completed on the Is Molas Golf Resort project and the project was presented to the authorities for the necessary approvals. Meanwhile, marketing activities began to promote the complex.
  • in 2006 the Piaggio Group was admitted to the Milan Stock Exchange, with the share price gaining more than 65% in the first few months of trading (percentage determined with reference to the closing price on 23 March 2007). On the business side, the Pontedera-based group made positive progress in 2006 in both the two-wheel sector (net sales +8.7%, volumes +6.3%) and in light transport vehicles (net sales +17.3%, volumes +32%). IMMSI currently holds a direct interest of 55.02% in Piaggio & C. S.p.A.
  • the Rodriquez Cantieri Navali Group completed its industrial re-organisation to improve management and control in each line of business. During 2006, it acquired a number of important orders (including 5 fast ferries for the Sultanate of Oman and 3 minesweepers for the Finnish Navy), bringing its year-end order book to € 500 million, for an increase in production volumes over the next few years.

 

 

Business and financial figures


IMMSI Group 2006 consolidated net sales totalled € 1,708.8 million, a YoY increase of 10.4%. Net sales reflected € 1,607.4 million at the Piaggio group, € 5.4 million in the real estate business and € 95.9 million at the Rodriquez group.

 

Specifically, the Piaggio group reported a net sales increase of € 155.6 million from 2005 (+10.7%), driven by a general strengthening in its two-wheel brands and a further improvement in the light transport vehicles business in Europe (volumes +4.6%) and in India (volumes +37.4%). Noteworthy events in the two-wheeler sector included particularly satisfactory results at Vespa and Moto Guzzi, which topped 100,000 units and 10,000 units respectively, the production start-up of the MP3, the world’s first three-wheel scooter, and a score of motor-racing successes by Aprilia in the various world championships.

 

In the ship-building business, 2006 consolidated net sales amounted to € 95.9 million, up by 5.9% from € 90.6 million in 2005. 2006 net sales reflected only to a marginal extent the orders acquired during the year, whose impact will develop over the next few years beginning in 2007.

 

EBITDA amounted to € 180.8 million, with an EBITDA margin of 10.6% and a YoY improvement of 4.9%. The Piaggio group, which contributed EBITDA of € 204 million, had non-recurring expenses relating to IPO procedures (€ 10.2 million). RCN had negative EBITDA of € 16.1 million as a result both of low net sales in 2006, and the impact on income of guarantee expenses and prior-year charges relating to supply contracts agreed and completed in previous years.

 

After depreciation and amortisation charges of € 94.8 million, EBIT amounted to € 86 million, or 5% of net sales, for a YoY gain of 11.7%.

 

The Group posted net financial income of € 106 million, reflecting financial charges for approximately € 50.9 million and financial income of approximately € 157 million; financial income included € 136.1 million of capital gains at Piaggio Holding Netherlands B.V. from the market placement of 117,537,840 Piaggio C. S.p.A. shares at a per-share price of € 2.3, for the IPO.

 

After tax of € 24.4 million and minority interests of € 102 million, the Group posted a net profit of € 65.6 million for 2006, compared with € 8.4 million in 2005.

 

Group net debt at 31 December 2006 amounted to € 414.3 million, a decrease of € 96.6 million from € 510.9 million at 31 December 2005.

 

IMMSI Group total shareholders' equity at 31 December 2006 was € 645.6 million, including minority interests for € 243.8 million.

 

Significant events subsequent to year-end 2006

 

On 21 March 2007 Is Molas S.p.A received the approval of the Scenic Planning Office for its project; ratification by the Regional Council and subsequent publication in the regional gazette is pending, after which the company will obtain a final building licence from the Pula town council. Construction work is therefore expected to begin fairly shortly.

 

2007 outlook

 

With regard to the foreseeable outlook for Group operations, the Piaggio group will focus on maintaining its leadership in the scooter segment and consolidating the renewed success of the Aprilia and Guzzi brands. In the Light Transport Vehicles business, it will give priority to optimising growth on the Indian market.

 

At the Rodriquez Cantieri Navali group, the important contracts acquired last year indicate that 2007 production volumes will be significantly higher than in 2006. The new organisational structure will focus on improving contract management with a view to reporting positive EBIT for 2007.

 

Work is expected to begin on the Is Molas Golf Resort project by Massimiliano Fuksas.

 

IMMSI S.p.A.

 

For 2006, the parent company reported net sales of € 6.3 million, negative EBITDA of € 0.5 million and profit before tax of € 34.6 million. This is not comparable with 2005 profit before tax, since it arose on the Piaggio & C. share dividend for a gross amount of € 37.8 million paid by Piaggio Holding Netherlands BV. Net profit for 2006 therefore totalled € 28 million, compared with € 2.8 million in 2005.

 

Given the net profit for the year, the Board of Directors will ask the Shareholders’ Meeting to approve payment of a dividend of € 0.03 per share, for a total payout of € 10,296,000 million. Coupon tear-off will be 28 May 2007, with payment as from 31 May 2007.

 

****

 

The Board of Directors also carried a number of resolutions regarding corporate governance, in compliance with the Voluntary Code of Conduct: they named Independent Director Marco Reboa as Lead Independent Director and appointed Directors Marco Reboa, Mauro Gambaro and Carlo d’Urso to form an Internal Control Committee, with Mr Reboa acting as committee chairman.

 

 

 

For more information:
IMMSI Press Office
Via Vivaio, 6 - 20122 Milan
Massimiliano Levi
Tel. +39 0276212620
 Fax. +39 0276212629
massimiliano.levi@immsi.it
www.immsi.it