Technical Publications Service : TPS Group continues on its growth pathway in 2018 Revenue at +26%.pdf

Technical Publications Service S.p.A.

• ●PRESS RELEASE●

TPS GROUP CONTINUES ON ITS GROWTH PATHWAY: IN 2018 REVENUE AT +26%

The Board of Directors has approved the draft statutory financial statements and consolidated balance sheet of the Group at 31 December 2018 and proposed the distribution of a dividend of Euro 0.05 per share

• Revenue: Euro 24.1 million, + 26% (FY2017 Euro 19.1 million)

• EBITDA: Euro 4.8 million, + 14% (FY2017 Euro 4.2 million)

• Net Result Adjusted : Euro 2.21 million, +5% (FY2017 Euro 2.11 million)

• Net Financial Position: Euro (7 million) to FY2017 Euro 0.14 million

Gallarate (VA), March 19, 2019- TPS S.p.A. (TPS: IM) operational holding of the TPS Group, leading company in technical services and engineering for the aeronautical and automotive industry ("TPS" or "Company" or "Issuer") has announced that the Board of Directors approved today the draft statutory financial statements and the consolidated balance sheet of the Group for the year ended 31 December 2018.

Moreover, the Board of Directors resolved to propose to the Shareholders' Meeting, called for 19 April 2019 at first call and, if necessary, 22 April 2019 at second call, the distribution of a gross dividend of Euro 0.05 per each outstanding share according to the following calendar: ex date6 May 2019, record date7 May 2019,and payment date8 May 2019.

The Chair of the Board of Directors, Mr. Alessandro Rosso, commented as follows:

"The results of 2018 confirm the value of consolidation and growth process that we are pursuing. Last year theenlargement of the Group to new industrial sectors, especially theautomotiveone,took place, as well as the positive completion ofshare capital increase, which will allow us to further invest and extend the services and products that we offer on the market. The extraordinary operations of 2018 allowed us an important diversification in the industrial sector and a significant reinforcement of capital, which leads us to new M&A transactions.

The results of the year should be viewed within a precise industrial strategy started some years ago and made possible by the value of the management leading the company with passion, ability, and dedication, as well as all the people who are part of the TPS Group, who constitute a simply extraordinary unit of skills and energy"

Main consolidated results as at 31 December 2018

The consolidated balance sheet was prepared based on the financial statements ended 31 December 2018 by the Issuer and by other companies of the Group within the scope of the consolidation, as Neos S.r.l., TPS Aerospace Engineering S.r.l., Adriatech S.r.l., Aviotrace Swiss SA, ICB S.r.l., Stemar Consulting S.r.l., Satiz Technical Publishing & Multimedia S.r.l., TPM Engineering S.r.l., Satiz Poland sp. zoo.

Therevenuesare Euro 24.1 million, with a growth of 26% compared to Euro 19.1 million in 2017; such a significant increase reflects the positive results at the level of all of companies of the Group and is due both to the organic growth of the TPS Group and to the conferral of Satiz Technical Publishing & Multimedia Srl in the month of October 2018. In particular, in 2018 TPS expanded its commercial action by opening new interest areas thanks to the acquisition of the entire share capital of Satiz Technical Publishing & Multimedia S.r.l.

The TPS Group has a transversal organization compared to the single companies, based on 4 strategic business units:Technical Publishing & Training,Engineering & Cost Engineering,Avionic & Informative Technologies,Digital Content Management.

EBITDAis Euro 4.8 million, which is a growth of 14%, compared to Euro 4.2 million in 2017, for anEBITDA marginof 20% (21.7% in 2017).EBITis Euro 3.2 million, lower than the previous year owing to the major depreciations made in the last years (Euro 3.4 million in 2017).

Thepre-tax resultof Euro 3.1 million shows a slight increase on the Euro 3.08 million in 2017.

Net profit adjusted(net of the economic costs related to the 2018 share capital increase)is Euro 2.21 million and represents an increase of 5% compared to the Euro 2.11 million of 2017. Taxes are equal to Euro 965 million.

The net profit is Euro2.14 million, and theGroup net profitarose from Euro 2.01 million in 2017 to Euro 2.03 million in 2018.

The net improvement on economic results for 2018 is a result of the growth in turnover, also obtained from the arrival of new customers and reduced operating costs as a results of the integrated management of operating resources by the TPS Group.

TheNet financial positionis Euro (7 million) compared to Euro 0.14 million at 31 December 2017.

TPS main results as at 31 December 2018

Revenueis Euro 5.8 million (Euro 4.9 million in 2017);EBITDAis Euro 1.2 million, slightly down compared to 2017 (Euro 1.3 million) with anEBITDA marginof 20%.EBITis Euro 0.7 million (Euro 1.0 million Euro in 2017) as an effect of the investments made in the year.

Thepre-tax resultis Euro 0.7 million, compared to Euro 1.0 million in 2017.Net profit adjusted(net of the financial charges relating to the increase in share capital)is Euro 0.6 million, compared to Euro 0.7 million in 2017. Net profit is Euro 0.5 million.

TheNet financial positionis Euro 5.2 million compared to Euro 0.3 million at 31 December 2017.

Business outlook

In 2019, the TPS Group intends to continue its growth path, both in organic terms and in external lines. The capital increase in 2018 has the purpose of provide the Group with financial resources useful for new focused transactions of M&A, that can expand the value chain of the technical services offered to reference industrial sectors, especially the aeronautical one.

Distribution of the operating profit:

The TPS balance sheet at 31 December 2018 shows a profit of Euro 504,790.

The Board of Directors resolved to propose to the Shareholders' Meeting to:

-distribute a dividend of Euro 0.05 per share;

-allocate the remaining part amounting to Euro 127,182 to the legal reserve and Euro 15,990 to the extraordinary reserve.

Convocation of the Shareholders' Meeting

At todays Meeting, the TPS Board of Directors resolved,inter alia, to call the TPS Shareholders' Meeting for 19 April 2019 at first call and, if necessary, 22 April 2019 at second call, to deliberate on(i)the balance sheet of the Company at 31 December 2018,(ii)acknowledgement of the Group consolidated balance sheet concerning the year ended 31 December 2018, as well as(iii)conferral of assignment of the statutory auditor of the Company for the three-year period 2019-2021 to an auditing company, on a reasoned proposal by the Board of Statutory Auditors according to the applicable law.

In this respect, it is recalled that - upon approval of said balance sheet by the Shareholders' Meeting - the assignment of statutory auditor to the company Audirevi S.p.A. for the three-year period 2016-2018 will expire.

The notice of convocation will be published in the sectionInvestor Relations, Meetingsof the Issuer's websitewww.tps-group.itand in the Official Gazette under the statutory and legal terms.

The documentation required by prevailing law in relation to the aforesaid matters will be filed at the registered office and at the same time made available in theInvestor Relations, Meetingssection on the Issuer'swebsitewww.tps-group.itpursuant to the terms of law.

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The following section contains reclassified data for the Income Statement, Balance Sheet and Cash flow Statement as at 31 December 2018 (both consolidated and from the accounting period for TPS). The data are currently undergoing certification by the Auditors.

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This press release is available to read on-line atwww.tps-group.it(in the Investor Relations/Press Release section)

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TPS S.p.A.is an operational holding company of TPS Group, leader in the technical services field for the aeronautical industry, with specific focus on helicopters. TPS is a Borsa Italiana "Elite" company.

Founded in 1964, TPS has been working in the aeronautical, automotive, defence, rail and ship industries, providing Technical Publishing & Training services, Engineering, Design and Cost Engineering, as well as Avionic Software Development , System Integration, and Digital Content Management. The TPS Group can include leaders in the field of aircraft design and production, as well as the manufacture of aeronautical parts, as well as leading automotive and rail manufacturers among its client base.

ISIN code ordinary shares: IT0005246142 - Ticker ordinary shares: TPS

ISIN Code Warrant: IT0005246225 - Ticker Warrant: WTPS20

For more information:

●Investor Relations●	●Integrae SIM S.p.A.●
Sanna Rossella	Nominated Adviser
e.mail:[e-mail]	ph: +39 02/87208720
e.mail:[e-mail]
-www.tps-group.it-

Consolidated economic, financial and operational data

RECLASSIFIED PROFIT AND LOSS ACCOUNT	Consolidated Balance Sheet 2018, TPS Group	Consolidated Balance Sheet 2017, TPS Group
Production value	24.083.523	19.085.162
External costs for material and services	(6.615.935)	(6.274.655)
Added value	17.467.588	12.810.507
Personnel costs	(12.614.873)	(8.578.884)
Other operating income (charges)	(100.964)	(81.599)
EBITDA	4.751.751	4.150.024
Depreciation	(1.577.242)	(786.898)
EBIT	3.174.509	3.363.126
(charges) / operating income	(157.439)	(38.094)
(charges) / extraordinary income	89.206	(237.651)
Results before tax	3.106.276	3.087.381
Current and deferred tax	(965.689)	(973.843)
Net income adjusted*	2.212.354
Net income	2.140.586	2.113.537
Pertinent to the Group	2.032.224	2.016.315
* net of costs incurred by the Tps S.p.A. and subsidiaries companies for the capital increase

RECLASSIFIED BALANCE SHEET	Report 2018, TPS Group
Receivables from shareholders for payments still due	0	0
Intangible assets	4.699.423	3.173.314
Tangible assets	864.927	818.208
Financial assets	145.629	21.296
Total financial fixed assets	5.709.979	4.012.818
Trade receivables	11.686.038	10.565.495
Trade payables	(1.888.886)	(2.803.969)
Working capital	9.797.152	7.761.526
Other assets	2.093.084	1.311.355
Other liabilities	(3.980.322)	(2.589.541)
Other assets and liabilities	(1.887.238)	(1.278.186)
Reserves for contingent liabilities	(49.303)	(215.000)
Severance fund	(2.595.221)	(2.106.927)
Total fund	(2.644.524)	(2.321.927)
Net invested capital (NIC)	10.975.370	8.174.230
Group net assets	15.586.903	5.750.479
Minority interest in shareholders' equity	266.867	169.645
Group result for the period	2.032.224	2.016.315
Minority interest in income for the period	108.364	97.222
CONSOLIDATED NET ASSETS	17.994.359	8.033.661
Net financial debt (PFN)	(7.018.989)	140.570
To cover NIC	10.975.370	8.174.230

Report 2017, TPS Group

Consolidated Statement

FINANCIAL STATEMENT
Amounts in euro
2018	2017
Pre-tax profit (loss)	3.007.955	3.066.541
Corrections for:
- non-monetary items - Change in inventories
- non-monetary items - Net writedown (revaluation) of assets	-
- non-monetary items - accruals / releases	747	(14.797)
- non-monetary items - amortisations	1.576.495	786.898
Pre-tax profit (loss) for the period	4.585.198	3.838.642
Liquid assets generated by operations
- Income tax	(965.689)	(973.843)
Other financial (income) / charges without money flows	98.320	38.094
Total	(867.369)	(935.749)
Variations in net circulating capital
Variations to receivables from commercial customers (increase)/decrease	3.167.617	(2.417.252)
Variation in liabilities to suppliers	(430.156)	1.102.188
Variations in other assets and liabilities
Other variations	(342.914)	215.442
Variation in severance and other funds	-
Variations in other reserves and deferred taxes	63.112	(28.629)
Total	2.457.659	(1.128.251)
Cash flow from operating activities (1)	6.175.487	1.774.642
Investments:
- Tangible	(51.370)	(54.363)
- Intangible	(2.643.724)	(1.931.124)
- Acquisition of company stock	382.786	(2.517.853)
- Financial	(62.209)	5.144
Cash flow from investments (2)	(2.374.517)	(4.498.196)
Financial activities
Increase/(decrease) in financial liabilities	(1.633.582)	(29.813)
Increases in company capital of a monetary nature	4.858.549
Expenditure on capital operations	150.867
Other variations for net assets	320.000	2.875.200
Cash flow from financing activities (3)	3.695.833	2.845.387
Cash flow from continuing operations	7.496.804	121.833
Variations in liquid assets (1+2+3)	7.496.804	121.833
Liquid assets from the start of the financial period	1.569.125	1.198.308
Liquid assets from the start of the financial period for transferred companies	852.786	248.984
Liquid assets at the end of the period	9.918.715	1.569.125