Biesse : 14/05/2019 - 15.25 - APPROVAL OF THE QUARTERLY FINANCIAL REPORT TO 31 MARCH 2018

Approval of quarterly financial report for the three months ended

31 March 2019

compared to the corresponding period in 2018:

∙increase in consolidated revenue and value added

∙fall in EBITDA, EBIT and profit for the period

∙net financial position of Euro 16.7 million negative due to effect of IFRS 16

(negative impact of Euro 26.4 million)

	Amounts in Euro millions		31.3.19		31.3.18
	Consolidated revenue from sales and services		169.0		162.3
	EBITDA*		18.9		19.8
	EBIT*		10.7		13.9
	Profit for the period		5.6		8.1
	Net cash/(debt) (withimpact of IFRS16)		-16.7		18.9
	*before non-recurring items	IFRS 16: increase in debt of Euro 26.4
				million due to leases and rights-of-use

Pesaro, 14 May 2019 - The Board of Directors of Biesse S.p.A. - a company listed on the STAR (mid-cap) segment of the Italian Stock Exchange- today approved the consolidated interim financial report for the first quarter of 2019.

For the period 1/1/19 - 31/3/19, Biesse Group has reported:

•consolidated revenue from sales and services of Euro 169.0 million (+4.1% compared to the corresponding period

in 2018)

•value added of Euro 75.6 million (+8.5% compared to the corresponding period in 2018), being 44.8% of revenue

•EBITDA of Euro 18.9 million (-4.4% compared to the corresponding period in 2018), being 11.2% of revenue (positive impact of IFRS 16 of Euro 1.2 million)

•EBIT of Euro 10.7 million (-23.5% compared to the corresponding period in 2018), being 6.3% of revenue

•profit before tax of Euro 8.4 million (-34.8% compared to the corresponding period in 2018), being 5.0% of revenue

•profit for the period of Euro 5.6 million (-30.7% compared to the corresponding period in 2018), being 3.3% of revenue, with a tax rate of 33.3% (37.2% in the period to March 2018)

The Group's net financial position at 31 March 2019, including the impact of IFRS 16, amounts to Euro -16.7 million. On a pro-forma basis, excluding the impact of IFRS 16, the Group had a net cash position (positive) at the end of March 2019 of Euro 9.7 million, which also reflects the normal cyclicity/seasonality that is typical of Biesse's business in the first quarter of the year.

Net capital employed amounts to Euro 243.2 million. Equity amounts to Euro 226.5 million.

Orders

At the end of the first quarter of 2019, the value of the Group's order intake (machinery) had fallen by 9.5%, influenced by the global macroeconomic trend and evident uncertainty and instability factors. There was a much more modest decrease in the order backlog (-1.4%) that, at the end of March, exceeded Euro 223 million. During the current month, Biesse will participate at the important wood industry trade fair, Ligna 2019 (27 - 31 May, Hannover Hall 11) with an exhibition area of 6,000 sqm. In addition to new advanced technological solutions offered by its products, Biesse's stand will exhibit specific proposals concerning robotics and digitalisation. In particular, those visible will include 3 automated process solutions, "from the raw material to the finished product".

Breakdown of revenue (by business division and geographical area)

The wood division has prevailed again (69.9%) over the glass & stone division (19.6%) and the mechatronics division (13.4%).

In comparison to the 2018 comparative period, the breakdown by macro geographical area has remained largely unchanged as detailed below:

the market share by revenue in Italy comes to 15% (15.75% in the period to March 2018)

•Western Europe 45.9% (41.5% in 1Q 2018) +15.1%

•Eastern Europe 13.7% (14.8% in 1Q 2018) -4.1%

•North America 21.3% (16.7% in 1Q 2018) +32.6%

•Asia Pacific 15.6% (20.5% in the IQ 2018) -20.6%

•Rest of the world 3.5% (6.5% in 1Q 2018) +4.1%

The was a highly positive performance in Western Europe (+15.1%), and, above all, in the North-American market (+32.6%), where the favourable economic environment and the positive outlook continued to support demand for capital goods. The contribution made by other countries (Brazil and Turkey) has remained weak due to turbulence and political, economic and monetary instability. The Asian share, in terms of percentage of consolidated revenue, has fallen by 20.6%.

China accounts for 3.2% of consolidated revenue. The BRIC countries account for 8.1%.

Dividends

As previously announced, an ordinary dividend was paid to eligible shareholders of Euro 0.48 per share, gross of withholding tax, (ex-dividend date 6 May (coupon No. 15) - record date 7 May - payment value date 8 May). The total cash outlay by the company came to Euro 13,148,660.

"Pursuant to paragraph 2, Art. 154-bis of the Consolidated Finance Act, the financial reporting manager (Mr. Stefano Porcellini) declares that the accounting information contained in this press release corresponds to the underlying documents, books and accounting records"

FINANCIAL STATEMENTS

Statement of profit or loss for the period ended 31 March 2019 highlighting non-recurring items

Net cash/debt at 31 March 2019