SOL : First half 2016 results

SOL GROUP

PRESS RELEASE FIRST HALF 2016 RESULTS The Board of Directors has approved the First Half 2016 results. Consolidated Sales € 348.3 ml, (+4.5% vs 1H 2015, € 333.4 ml), EBITDA € 81.9 ml being 23.5% on sales (€ 72.6 ml at 1H 2015), EBIT € 38.5 ml being 11.1% on sales (€ 32.3 ml at 1H 2015), Net Profit € 19.4 ml (16.5 ml at 1H 2015).

These are the highlights disclosed in the First Half 2016 results approved earlier today by the Board of Directors of SOL S.p.A., a listed company on the Italian Stock Exchange that acts as holding company to an Italian multinational group, with more than 3,000 employees, involved in the area of technical gases and home-care assistance, operating in Europe, Turkey, Morocco, India and Brazil.

In a climate of moderate economic recovery and uncertainty due to low prices of raw materials in the European countries, in the first half of 2016 Sol Group achieved a growth of 4.5 % in sales volume compared with the 1H 2015. The positive result is due to the growth of sales abroad with an increase of 7.3%, but also to an improvement in Italy, where the growth was of 1.6%.

With reference to the two businesses of the Group, the Technical Gases Division registered an increase of sales of 1.8% in respect to the first semester of 2015, whereas the Home Care Division, in which the Group operates through VIVISOL, marked a growth of 7.2%.

EBITDA and EBIT increased of 12.8% and 19.3% respectively, compared with the 1H 2015.

The Consolidated Net Profit was € 19.4 ml, with a growth of 17.7% compared with the first half of 2015 (€ 16.5 ml).

In financial terms, Operating Cash Flow was € 60.2 ml (€ 55.6 ml in the same period of 2015); the Total Net Debt was € 253.4 ml, increased by € 7.1 ml vs June 2015 and

€ 23.3 ml vs 12/31/15, due to the investments made in the first semester of € 53.4 ml and the payment of dividends for € 11.8 ml.

The Net Debt/Equity ratio was 0.55 (0.56 at the end of June 2015). There are no relevant events occurred after June 30, 2016.

"We consider in a positive way the results achieved in the first semester of 2016" affirmed Marco Annoni, Vice-President of SOL S.p.A. "which confirm the capacity of SOL Group to operate in an uncertain economic situation".

"In the year 2016", concluded SOL Chairman Aldo Fumagalli Romario, "our target is to pursue the trend of growth of sales and to maintain the profitability of the Group at a good level, to continue the investment program sustaining the development, the internationalization, the diversification and the innovation".

Pursuant to paragraph 2 of Article 154-bis of the Unified Finance Act of February 24,1998, the manager responsible for preparing the financial reports Marco Filippi declares that the accounting information contained in this press release corresponds to the results documented in the books, accounting and other records.

Enclosure: Consolidated Income Statement and Statement of Financial Position. Monza, September 6th, 2016

SOL Group - Consolidated income statement

(Thousands Euro)

30/06/2016	%	30/06/2015	%
Net sales	348,343	100.0%	333,372	100.0%
Other revenues and proceeds	1,971	0.6%	2,471	0.7%
Internal works and collections	5,841	1.7%	7,931	2.4%
Revenues	356,156	102.2%	343,773	103.1%
Purchase of materials	82,330	23.6%	87,161	26.1%
Services rendered	105,497	30.3%	101,841	30.5%
Change in inventories	(1,934)	-0.6%	(4,550)	-1.4%
Other expenses	14,022	4.0%	15,983	4.8%
Total costs	199,914	57.4%	200,435	60.1%
Added value	156,242	44.9%	143,338	43.0%
Payroll and related costs	74,373	21.4%	70,757	21.2%
EBITDA	81,869	23.5%	72,581	21.8%
Depreciation & amortization	40,157	11.5%	38,331	11.5%
Other provisions	3,169	0.9%	1,938	0.6%
Non recurring (Income) / Charges	0	0.0%	0	0.0%
EBIT	38,543	11.1%	32,313	9.7%
Financial income	889	0.3%	2,544	0.8%
Financial expense	(7,617)	-2.2%	(6,700)	-2.0%
Result of investments	(151)	0.0%	(421)	-0.1%
Net financial Income / (Charges)	(6,879)	-2.0%	(4,576)	-1.4%
PBT	31,665	9.1%	27,736	8.3%
Tax on profit	11,607	3.3%	10,425	3.1%
Net profit from ongoing operations	20,058	5.8%	17,311	5.2%
Net profit from discontinuous operations	0	0.0%	0	0.0%
Minorities	(671)	-0.2%	(845)	-0.3%
Net profit	19,386	5.6%	16,466	4.9%
EPS	0.214	0.0%	0.182	0.0%

SOL Group - Statement of financial position

(Thousands Euro)	30/06/2016	31/12/2015
Tangible assets	446,637	433,651
Goodwill and consolidation differences	57,268	56,342
Other intangible assets	12,284	11,635
Equity investments	10,139	10,552
Other financial assets	17,654	19,436
Tax advances	6,327	6,107
NON CURRENT ASSETS	550,309	537,722
Non current assets held for sale	0	0
Inventories	40,913	39,024
Trade receivables	256,430	242,822
Other current assets	40,943	33,530
Current financial assets	5,592	5,402
Cash and banks	78,667	101,989
CURRENT ASSETS	422,545	422,766
TOTAL ASSETS	972,854	960,488
Share capital	47,164	47,164
Share premium reserve	63,335	63,335
Legal reserve	10,459	10,459
Reserve for treasury shares in portfolio	0	0
Other reserves	302,055	287,106
Retained earnings	1,992	2,473
Net profit	19,386	32,441
Shareholders' equity - Group	444,391	442,979
Minorities	14,631	13,186
Net income attributable to minority shareholders	671	1,968
Shareholders' equity - minority interests	15,303	15,154
SHAREHOLDERS' EQUITY	459,694	458,132
Employee benefits	15,596	14,250
Provision for deferred tax liabilitieses	2,431	2,709
Provision for risks and charges	1,295	956
Payables and other financial liabilities	299,409	301,691
NON CURRENT LIABILITIES	318,731	319,606
Non current liabilities held for sale	0	0
Due to banks	15,325	2,975
Trade accounts	103,723	88,960
Current financial liabilities	35,791	48,573
Taxes payables	9,875	11,523
Other current liabilities	29,715	30,720
CURRENT LIABILITIES	194,429	182,750
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	972,854	960,488