Semiannual Report as of June 30 th, 2017

Transcription

1 Semiannual Report as of June 30 th, 2017 Diagnostica Senese S.p.A.

2 MANAGEMENT REPORT FOR THE 1 st SEMESTER 2017 DIESSE - DIAGNOSTICA SENESE S.p.A. Head office in Milano, via Solari, 19 Secondary Office in Monteriggioni (SI), via delle Rose, 10 Capital stock euro Company Register of Milano Tax ID:

3 SUMMARY COMPANY BODIES... 4 OPERATIONAL STRUCTURE OF DIESSE S.P.A. AND DIESSE GROUP... 5 FINANCIAL HIGHLIGHTS... 6 ECONOMIC TREND PER BUSINESS UNIT... 7 FINANCIAL DATA FOR THE 1ST SEMESTER FORESEEABLE EVOLUTION OF THE BUSINESS

4 COMPANY BODIES Board of Directors ( ) CHAIRMAN AND CEO VICE CHAIRMAN DIRECTOR DIRECTOR Stefano Marchese Janusz Plocica Krzysztof Rudnik Fabrizio Villa Board of Auditors ( ) CHAIRMAN REGULAR AUDITORS SUBSTITUTE AUDITORS Fabio Coacci Stefano Bagnara Massimo Martini Luca Andrea Cidda Simonetta Pesce Audit firm ( ) KPMG 4

5 OPERATIONAL STRUCTURE OF DIESSE S.P.A. AND DIESSE GROUP The DIESSE S.p.A. structure is as follows: Registered office: Administration, Finance & Management Accounting Milano via Solari, 19 Secondary office: Reagent Production Development Monteriggioni (SI), località Tognazza, via delle Rose 10 Plastic material production Instrument Quality Control Warehouse Instrument Technical Assistance ESR-line Production Sales & Marketing Packing Reagent Quality Control Chorus-line Production Research Monteriggioni (SI), località Rigoni, strada Provinciale Colligiana, 44 Monteriggioni (SI) località San Martino, via del Pozzo, 5 Siena TLS - Toscana Life Sciences, via Fiorentina, 1. Trieste Area Science Park Padriciano, 99 The DIESSE group structure includes the following subsidiary company: Name Registered Office Business Percentage of shareholding Diesse Immobiliare s.p.a. Milano, Real Estate 100% via Solari, 19 Company 5

6 FINANCIAL HIGHLIGHTS Sales: 11,4 m., + 7% EBITDA: 2,3 m., + 15% Net profit: 899 k., + 86% Net financial position: 14,9 m., - 8% Equity: 3 m., + 43% (1H2016: 10,7 m.) (1H2016: 2 m.) (1H2016: 484 k.) (1H2016: 16,2 m.) (2016: 2,1 m.) Installed Chorus: 2.300, + 81 instruments (2016: 2.219) Installed Basis: , instruments (2016: ) 6

7 ECONOMIC TREND PER BUSINESS UNIT The breakdown of sales by product-line, compared with the values of the first semester 2016, as well as with the value of the budget, are here below indicated. Comparison Forecast/Sales by LINE JUNE 2016/JUNE 2017 (value = Eur) C U M U L A T I V E SALES (JUNE) Sales Forecast Sales Delta value Delta % Delta % Sales '16 Sales '16 Forecast '17 E S R TOTAL , , , ,50 20,53 7,36 Export , , , ,08 23,98 8,61 Italy , , , ,92 8,37 1,14 OEM Italy 4.024,00 406, , ,50 CHORUS TOTAL , , , ,22 4,33 0,65 Export , , , ,54-2,84-5,34 Italy , , , ,16 16,20 10,30 OEM Italy 174,00 0, ,60 893,60 ENZY-WELL TOTAL , , , ,47-34,28-26,97 Export , , , ,08-36,23-28,42 Italy , , , ,62 17,08 2,39 OEM Italy , , , ,01-37,98-29,61 ROBOBACT TOTAL , , , ,04-17,19 41,42 Export , , , ,50-16,14-13,41 Italy , , , ,54-17,40 61,36 OEM Italy 0,00 0,00 0,00 0,00 MANUAL SEROL./MICR. TOTAL , , , ,42-16,10-32,20 Export , , , ,06-10,97-23,31 Italy , , , ,77-21,10-37,22 7

8 OEM Italy 4.654, , ,06-43,59-0,94-39,56 OTHERS (Incl. SERAMAT) TOTAL , , , ,70 21,73 138,00 Export , , , ,59 24,26 228,29 Italy , , , ,90-20,56 42,29 OEM Italy 2.393, , , ,01 512,07 405,32 PLUS FINDER TOTAL 5.255, ,00 975, ,00-81,45-97,23 Export 0,00 0,00 0,00 0,00 Italy 5.255, ,00 975, ,00-81,45-97,23 OEM Italy 0,00 0,00 0,00 0,00 MYTHIC TOTAL , , , ,72 2,13-20,86 Export 0,00 0,00 0,00 0,00 Italy , , , ,72 2,13-20,86 OEM Italy 0,00 0,00 0,00 0,00 SPARE PARTS TOTAL , , , ,25 52,13 55,01 Export , , , ,48 53,46 55,49 Italy 5.746, , , ,23-26,04 12,07 OEM Italy 0,00 0,00 0,00 0,00 "Lease-Back" invoices TOTAL 0,00 0,00 0,00 0,00 Export 0,00 0,00 0,00 0,00 Italy 0,00 0,00 0,00 0,00 OEM Italy 0,00 0,00 0,00 0,00 TOTAL TOTAL , , , ,46 7,39 2,33 Export , , , ,97 5,69 0,76 Italy , , , ,98 11,80 5,83 OEM Italy , , , ,49-8,50 2,80 From the data above indicated, it is possible to note the remarkable increase of more than 20% of the sales of EST line, and of more than 16% of sales in Italy of the Chorus line, however counterbalanced by a decrease of 3% of the export sales of this product, which determined the global trend of this line substantially without changes compared to the previous year. 8

9 The vertical decrease of the the Enzy-Well line and, to a lesser extent, of the Robobact line, are continuing, the importance of such lines within the product portfolio of DIESSE is not negligible. Considering total sales, these increased by 7%, of which about 6% for export and about 12% in Italy. Cumulative Sales by CUSTOMER GROUP/LINE JUNE 2016/JUNE 2017 (value = Eur) Cumulative Sales JUNE 2016 Cumulative Sales JUNE 2017 % Export Italy OEM Italy Total Export Italy OEM Italy Total 2017/ 2016 E S R Total % Reagents , % Instruments , % CHORUS Total , % Reagents , % Instruments % ENZY-WELL % ROBOBACT Total % Reagents % Instruments % SERAMAT Total , % Reagents , % Instruments , % MANUAL SEROLOGY % MANUAL MICROBIOL , % PLUS FINDER , , % MYTHIC , , % SPARE PARTS , % FOOD INTOLERANCE ,00 0 RAW MATERIALS , % OTHER PRODUCTS % BLOOD AND DERIV % Lease-Back Invoices TOTAL ,4% (of which instruments) , % 9

10 The above table shows a significant increase (17%) of the sales of instruments, manly due to the new instrument VES Mini-Cube. Sales of the instruments of ESRline increased by 43%, while those of Chorus-line registered a decrease of 5% because of the expectation by the market of the new model inclusive of the autosample module. It is worth to note that, on the basis of the Company business model, the instrument installed basis is the driver of future sales of reagents; therefore, this figure is a leading indicator of increases of future sales. In this respect, the installed basis is of about 2,300 Chorus (2.200 as of December 31 st, 2016) and of ESR instruments, for a total of instruments in the world, compared to at the end of 2016, thus with an increase of 6%. For a better understanding the breakdown of sales by product line, here are reported two graphs, related to the percentages for 1H16 and 1H17. 0% 1% 0% 9% 1% 53% 1% 3% Cumul. Sales June 2016 E S R 32% CHORUS ENZY- WELL 0% 1% 5% 0% 1% 5% 1% 51% Cumul. Sales June 2017 E S R 36% CHORUS ENZY-WELL ROBOBACT SERAMAT The most important fact that emerges from the comparison of the two mixes is the increase of 4 points of the weight of ESR line, and the decrease of 2 points of the Chorus line and of 4 points of the Enzy-Well line. With regard to the evolution of sales in the different geographical areas, it is noted an increase of 25% of sales in the African continent, of 64% of sales in the American continent and of about 6% of sales in Europe; on the other side, there has been a decrease of 4% of sales in Asia and of 20% of sales in Middle East, mainly because of the tensions existing in this area. 10

11 FINANCIAL DATA FOR THE 1ST SEMESTER 2017 The pro-forma consolidated figures of Diesse Group as of June 30 th, 2017, which perimeter includes, in addition to DIESSE, Diesse Immobiliare s.p.a., are as follows 1. DIESSE - DIAGNOSTICA SENESE S.P.A. - June 30, 2017 BALANCE SHEET Diesse s.p.a. IFRS Immobiliare IFRS Consolidated Consolidated Consolidated ASSETS A) Receivables toward shareholders for capital B) Fixed assets: I) Intangibles 1) Start-up costs ) Development cost ) Patents ) Brand, licences and know-how ) Goodwill ) Intangibles in progress and advance payments ) Others Total intangibles II) Tangibles 1) Lands and buildings ) Plants and machineries ) Equipments ) Others ) Tangibles in progress and advance payments Total tangibles III) Financial fixed assets 1) Undertakings in: a) controlled companies Financial leases are treated according to IAS

12 b) connected companies d-bis) other companies ) Receivables - - a) toward controlled companies b) toward connected companies c) toward controlling companies d-bis) toward others ) Securities ) Own shares Total financial fixed assets Total fixed assets C) Working capital: I) Inventories 1) Raw materials and consumables ) Products in progress and semifinished products ) Work in progress ) Finished products and goods for resale ) Advance payments Total inventories II) Receivables: 1) toward clients ) toward controlled companies ) toward connected companies ) toward controlling companies bis) tax receivables

13 5-ter) assets for deferred taxes quater) other receivables Total receivables IV) Cash 1) Cash in bank ) Cheques ) Cash on hand Total cash Total working capital D) Accruals receivables and prepaid expenses Total assets LIABILITIES AND CAPITAL A) Equity: I) Capital stock II) Share premium III) Revaluation reserve IV) Legal reserve V) Reserve for own shares or for shares of the controlling company VI) Reserves according to bylaws VII) Other reserves Additional paid-in capital VIII) Retained earnings IX) Net profit (or loss) Total equity B) Funds for provisions 1) For deferred payments ) for deferred tax liabilities ) other

14 Total funds for provisions C) Severance pay fund D) Debts: 1) ordinary bonds ) convertible bonds ) bank liabilities: a) short term b) medium and long term total bank liabilities ) other financial liabilities a) short term b) medium and long term total other financial liabilities ) advance payments ) payables toward suppliers ) drafts ) payables toward controlled companies ) payables toward connected companies ) payables toward controlling companies ) tax liabilities ) payables toward social security agencies ) other debts Total debts E) Accruals payables and unearned income Total liabilities and equity Net Financial Position

15 INCOME STATEMENT Diesse s.p.a. IFRS Immobiliare IFRS 15 Consolidated Consolidated Consolidated A) Revenues 1) Revenues (sales and services) ) Change in inventory of semifinished and finished products ) Change of works in progress ) Increase of fixed assets produced internally ) Other revenues Total revenues B) Costs 6) Purchases of raw materials ) Service expenses ) Rents and leasing ) Personnel costs a) salaries b) social charges c) severance pay for the financial year d) other indemnities e) other costs Total personnel costs ) Depreciations and ammortisations a) intangibles b) tangibles c) amortization of fixed assets d) Provision for bad debts Total depreciations and amortisations ) Change in inventory of raw materials ) Provisions for risks

16 13) Other provisions ) Other expenses Total costs EBIT C) Interest revenues and expenses 15) dividends ) Interest and other financial revenues - from controlled and connected companies from controlling companies others Total interest and other financial revenues ) Interest and other financial expenses - from controlled and connected companies from controlling companies others Total interest and other financial expenses bis) profit or loss on currency exchange Financial result Profit from ordinary activity E) Extraordinary items 20) extraordinary gains ) extraordinary losses Result from extraordinary items Profit before taxes ) Taxes: 16

17 a) current taxes b) change in deferred tax liabilities c) change deferred tax assets Total taxes Net profit EBITDA With regard to the consolidated Balance Sheet, the comparison between the figures of the 1 st semester 2017 and those of the 1 st semester 2016shaws that the amount of fixed assets is almost stable, being the size of new investments lower than the amount of depreciations and amortizations. As far as the working capital is concerned, receivables increased because of the growth of sales, and the same happened to stock, determining an increase of working capital of about 1,1 million. The Net Financial Position formally appears to be increased to 14,9 m.; however, in practice, it has been decreased, because the NFP as of includes the amount of 1,8 m. of bond issued to convert the liabilities toward a shareholder and an ex-shareholder, which were allocated as other liabilities. Therefore, the amount of 14,9 m. of 2017 needs to be compared with that of 14,4 m. as of , added by such amount of 1,8 m., hence with the amount of 16,2 m. The result is an effective decrease of the NFP by 1,3 m. Additionally, it should be noted that the total liabilities decreased by 800 k. Consolidated Equity increased from 2,4 m. as of December 31 st, 2016 to 3,4 m. as of June 30 th, At Diesse s.p.a. level, the net profit for the 1 st semester 2017 has been of , amount that has permitted to reduce the cumulated loss below the threshold of one third of the share capital. Regarding the income statement, it has to be considered an increase of sales by 7%, which has implied an increase of EBITDA of 17%, of EBIT of 20% and of net profit of 86%, being financial costs substantially stable. Therefore, we are in a position to say that the results of the 1 st semester 2017 are more than satisfying. 17

18 FORESEEABLE EVOLUTION OF THE BUSINESS Also on the basis of the positive results registered in the first half of the year, and notwithstanding the fact that the second half is negatively influenced by the effect of the months of August and December, in which production and sales slowdown, for the financial year 2017 we estimate an increase both of sales and of the main performance indicator included in the Income Statement. Milan, September 2017 * * * The Chief Executive Officer Stefano Marchese 18