AVIO: REVENUES, MARGINS AND NET PROFIT KEEP GROWING
VEGA RETURN TO FLIGHT IN Q1 2020
VV15 Independent inquiry commission: in place the action plan for Vega to return to fly in Q1 2020
Development activities of Vega C on schedule: qualification flight expected by H1 2020
Success of 1 Vega and 3 Ariane 5 missions in 2019
First launch contracts for Ariane 6Operating results
Revenues1: Euro 189 million (+6% on H1 2018)
Reported EBITDA2: Euro 16.1 million (+11%)
Reported EBIT2: Euro 8.1 million (+5%)
Net Profit2: Euro 7.1 million (+14%)
Backlog of Euro 745 million
Distribution of dividends of Euro 11.6 million (+16% on 2018)
Net Financial Position2: cash position of Euro 20.4 million
Milan, September the 12th, 2019 - The Board of Directors of Avio S.p.A., aerospace leader listed on the STAR segment of the Italian Stock Exchange, today reviewed and approved the H1 2019 results.
The Chief Executive Officer Giulio Ranzo, opening the meeting, outlined the results of the inquiry of the Independent Investigatory Commission led by ESA and Arianespace with the support of Avio in relation to the anomaly which caused the premature conclusion of the VV15 mission in July (for the first time in the history of the Vega launcher, after 14 consecutive successful launches), highlighting that:
Among the possible causes, the anomaly was most likely due to a thermo-structural failure in the dome of the Zefiro23 second stage engine;
The Commission launched a verification plan of its findings and a corrective actions plan to fix the issue faced;
Vega return to flight, following a check on the implementation of the corrective measures, is expected in the first quarter of 2020;
Avio has started the assessment process of the short-term economic and financial effects
The CEO then outlined: the on-schedule development operations and tests ahead of the maiden Vega
Net of "pass-through" revenues.
Includes the effects of IFRS 16.
C flight, expected by H1 2020; the commercial success of the new Ariane 6 launcher, equipped with the P120 boosters produced by Avio, with the signing of several launch contracts (Arianespace has currently 8 Ariane 6 flights in its schedule).
In terms of the operating results, the Group reports H1 2019 revenues of Euro 189 million, up 6% on the same period of the previous year. The increase is primarily due to Vega launcher operations and the greater focus on development of the new P120C motor, for the next generation launchers Ariane 6 and Vega C.
Reported EBITDA of Euro 16.1 million, up 11% on H1 2018, while reported EBIT of Euro 8.1 million2grew 5% on the previous year, in line with the Reported EBITDA performance.
The Net Profit of Euro 7.1 million grew 14% on H1 2018, also thanks to reduced taxes.
The Net Financial Position at June 30 was a cash position of Euro 20.4 million (Euro 49.1 million at December 31, 2018), in line with the expected cash flows pattern, greater investments (Capex of Euro
16.1 million, +Euro 9.9 million on H1 2018) and the payment of dividends in May of Euro 11.6 million (+16% on the 2018 dividend).
The backlog declined to Euro 745 million (-15%,-Euro 132 million compared to December 2018) which, ahead of the ESA's 2019 ministerial conference and the signing of the initial batches for the Vega C and Ariane 6 launchers. In 3Q 2019 it is expected the signature of new orders mainly for the P120 engine, for a total value of approx. Euro 80 million.
"Our growth trend continued in the first half of 2019, building on the Group's 2018 results - stated Giulio Ranzo, Chief Executive Officer of Avio".
"In the first half of the year - added Ranzo - we have successfully completed the qualification tests of the new P120C and Zefiro40 motors (the Vega C and Ariane 6 common first stage and the second stage of the Vega C, respectively). These tests are a key step for the new Vega C, whose test flight is scheduled for H1 2020. At the same time, we have successfully performed the firing test of reduced-scale of the M10 Oxygen-Methane combustion chamber for the upper stage of the upcoming Vega E (soon there will be a full-scale firing test).
In relation to the anomaly on the VV15 and the relative corrective actions: "We are working with ESA and Arianespace to solve the problem and return to fly by Q1 2020 in compliance with the safety and reliability requirements - added Ranzo".
"The Vega anomaly does not impact our medium-long term growth plan - concluded Giulio Ranzo. We continue to work on developing new technologies and are launching the SPTF project in Sardinia, for the testing of cryogenic motors. In the meantime, we have completed the configuration of the new SSMS, the dispenser able to put into orbit many small satellites simultaneously to satisfy the increasingly sophisticated demand of Customers. We therefore keep focusing and confident on the opportunities to create value in the long-term for our shareholders".
The Half-Year Report Key Financial Highlights will be available in the Investor Relations section of www.avio.com to assist the call with financial analysts and investors scheduled for Thursday, September 12 at 6.30 PM. The Half-Year Financial Report will be made available in Italian and in English in accordance with Law.
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The Executive Officer for Financial Reporting, Alessandro Agosti, declares in accordance with paragraph 2, Article 154-bis of the Consolidated Finance Act that the accounting information in the present press release corresponds to the underlying accounting documents, records and entries.
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Avio is a leading international group engaged in the construction and development of space launchers and solid and liquid propulsion systems for space travel. The experience and know-how built up over more than 50 years puts Avio at the cutting-edge of the space launcher sector, solid, liquid and cryogenic propulsion and tactical propulsion. Avio operates in Italy, France and French Guyana with 5 facilities, employing approx. 1,000 highly-qualified personnel, of which approx. 30% involved in research and development. Avio is a prime contractor for the Vega programme and a sub-contractor for the Ariane programme, both financed by the European Space Agency ("ESA"), placing Italy among the limited number of countries capable of producing a complete spacecraft.
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CONSOLIDATED BALANCE SHEET
June 30, 2019 December 31, 2018
Non-current assets Property, plant & equipment Rights of use
Investment property Goodwill
Intangible assets with definite life Investments
Non-current financial assets Deferred tax assets Other non-current assets
Total non-current assets
Inventories and advances to suppliers Contract work-in-progress
Cash and cash equivalents Current tax receivables Other current assets
Total current assets
CONSOLIDATED BALANCE SHEET
June 30, 2019 December 31, 2018
Share premium reserve
Group net profit for the period
Total Group Equity
Equity attributable to non-controlling interests
TOTAL SHAREHOLDERS' EQUITY
Non-current financial liabilities
Employee benefit provisions
Provisions for risks and charges
Other non-current liabilities
Total non-current liabilities
Current liabilities Current financial liabilities
Current portion of non-current financial payables
Provisions for risks and charges Trade payables
Advances from clients for contract work-in- progress
Current income tax liabilities Other current liabilities
Total current liabilities
TOTAL LIABILITIES AND EQUITY
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Avio S.p.A. published this content on 12 September 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 September 2019 16:31:02 UTC