SERVIZI ITALIA: The Board of Directors approves the results as at June 30, 2017 and it appoints by co-optation the Director Antonio Aristide Mastrangelo.
  • Revenues at Euro 125.3 million (Euro 115.5 million as at 30 June 2016), whose 13.1% totaled in Brazil
  • EBITDA at Euro 34.6 million (Euro 32.7 million as at 30 June 2016), EBITDA adjusted at Euro 35.5 million
  • EBIT at Euro 8.0 million (Euro 9.2 million as at 30 June 2016), EBIT adjusted at Euro 8.9 million
  • Net Profit equal to Euro 7.1 million, million (Euro 7.2 million as at 30 June 2016), Net Profit adjusted at Euro 7.9 million
  • Net Financial Position at Euro 77.4 million (Euro 79.6 million at 31 December 2016)

    Castellina di Soragna, 11 September 2017

    The Board of Directors of Servizi Italia S.p.A, leader in Italy in the integrated services of rental, laundry and sterilization of textile garments and surgical instruments for hospitals and listed on the STAR segment of the Italian Stock Exchange, today approved the Half-Year Financial Report as at 30 June 2017.

    "We are very satisfied with the results of the first semester 2017 - states Enea Righi, Vice- Chairman and CEO of Servizi Italia - which are in line with the economic and financial projections of the industrial plan of the Group. In particular, the management concentrated its efforts towards the achievement of important commercial, managerial and operational goals. In the period, the operation of external growth and the award of new contracts in Italy and in Brazil led to an increase in revenues. The conclusion of the reorganisation and optimization project in the Italian North-West area, which envisaged the merger of the Company Tintoria Lombarda Divisione Sanitaria S.r.l. and the closure of a laundry plant, although it generated extraordinary one-off costs, laid the foundations for an important recovery of industrial efficiency starting from this year."

    Consolidated results as at 30 June 2017

    Revenues amounts to Euro 125.3 million (Euro 115.5 million as at 30 June 2016), whose 13.1% totaled in Brazil. With reference to the three business lines, it is to underline the growth of the was-hire and surgical instruments sterilization lines. In particular:

    • Revenues produced by Wash-hire services pass from Euro 86.0 million of the first semester 2016, to Euro 95.1 million in the first semester 2017, registering an increase of 10.6%;

    • Revenues produced by Surgical Instruments Sterilization pass from Euro 19.6 million of the first semester 2016, to Euro 20.5 million in the first semester 2017, registering an increase of 4.4%;

    • Revenues produced by Linen sterilization amount to Euro 9.7 million (Euro 9.9 million as at 30 June 2016);

Consolidated EBITDA amounts to Euro 34.6 million (Euro 32.7 million as at 30 June 2016), registering, compared to the same period of the previous year, an increase by 5.9%. EBITDA was positively impacted by the acquisition of Tintoria Lombarda Divisione Sanitaria S.r.l., by the increase in sales revenues in both the wash-hire line and the surgical instrument sterilisation line and by a greater reduction in operating costs as utilities, rentals and the use of third-party personnel. On the contrary, it was adversely affected by an increase of personnel expense in the Brazilian area and by one-off costs relating to the restructuring and industrial reorganisation of the Italian North-West area. Net of one-off components, EBITDA adjusted1, amounting to Euro 35,5 million, rose by 8.7% in absolute terms, with unchanged relative incidence.

EBIT is equal to Euro 8.0 million (Euro 9.2 million as at 30 June 2016) after depreciation and amortization for Euro 26.6 million, determined by the increase in depreciation of linen due to initial acquisitions of new jobs, amortisation of the customer portfolio which emerged from the

1 EBITDA adjusted does not consider non-recurring costs for Euro 925 thousand, relating to the restructuring and industrial reorganisation costs of the North-West area for Euro 564 thousand and one-off costs of the payment of registration tax and accessory charges for Euro 361 thousand.

acquisition of the company Tintoria Lombarda Divisione Sanitaria S.r.l. and the write-down of trade receivables of some private customers.

Profit before taxes passes from Euro 9.1 million to Euro 8.8 million. Financial management revealed a reduction compared to the same period of the previous year in net financial expense, due to the decrease in the rates on loans and an increase in financial income, also due to the recognition in the period of a positive difference on exchange rates due to the reduction in the Turkish Lira/Euro exchange rate compared to 31 December 2016. The result was also positively impacted by the revaluation of equity investments measured using the equity method.

Net profit, equal to Euro 7.1 million (Euro 7.2 million as at 30 June 2016). Adjusted net profit2 rose by 8.6% compared with the same period of the previous year and is equal to Euro

7.8 milion.

Net Financial Position is improved by Euro 2.2 million, passing from Euro 79.6 million as at

31 December 2016 to Euro 77.4 million, as a consequence of an accurate management of cash-flows.

Any relevant event subsequent to period end

11 July 2017: the company announced that Servizi Italia S.p.A.'s Board of Directors and the shareholders' meeting of Servizi Italia Medical S.r.l. approved the merger by incorporation of the wholly-owned subsidiary Servizi Italia Medical S.r.l. in Servizi Italia S.p.A. The merger will presumably be completed by 2017, therefore it will take effect from 1 January 2017 for tax and accounting purposes. For more details and information, refer to the documents available on the company's website.

On 2 August 2017: the company announced that, pursuant to the applicable regulations, Marco Marchetti stepped down from the role of executive Director and manager Servizi Italia S.p.A. For more information please visit the company's website.

2 Adjusted net profit does not consider non-recurring costs relating to the restructuring and industrial reorganisation costs of the North-West area for Euro 429 thousand, net of tax for Euro 135 thousand, and one-off costs of the payment of registration tax and accessory charges for Euro 361 thousand.

On 5 September 2017: the company announced the acquisition of the majority of the share capital of Steritek S.p.A., a leading Italian operator in offering services of validation and systematic control of sterilization cycles, surgical instruments washing systems and related services for Healthcare. Thanks to this transaction, Servizi Italia diversifies its existing business lines, expanding the range of high value added and similar services to its sterilisation activities. For more information and details of the characteristics of the transaction, please refer to the press release available on the company's website.

10 July 2017: the Company informed that, up to 7 July 2017, it purchased on the market regulated and managed by the Italian Stock Exchange a total of 10,550 treasury shares, equal to 0.332% of the share capital.

Treasury shares

As at 30 June 2017, the Company owns 9,000 treasury shares, equal to 0.0283% of the share capital as a result of purchases and sales made on the regulated market and managed by Borsa Italiana.

Outlook

The results achieved in the first half of 2017 confirm the estimates and income statement and cash flow projections set forth in the plan. For the year 2017, the Group expects results that will take into account the commitment to consolidating investments made in the countries in which it operates, as well as meeting significant operating and organisational efficiency targets which are related, among other things, to meeting customer quality requirements, but also further enhancing the value of social sustainability, considered increasingly more pertinent to all areas of the business.

Deposit of documentation

Please be informed that, under the terms and in the manner provided by law, we will proceed and make available to the public the Interim Financial Report at 30 June 2017, accompanied by the report of the independent auditors.

Other resolutions

Servizi Italia S.p.A. published this content on 11 September 2017 and is solely responsible for the information contained herein.
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