BOARD OF DIRECTORS APPROVES THE SEPARATE AND CONSOLIDATED FINANCIAL STATEMENTS AS AT 31 DECEMBER 2017

Transcription

1 BOARD OF DIRECTORS APPROVES THE SEPARATE AND CONSOLIDATED FINANCIAL STATEMENTS AS AT 31 DECEMBER 2017 BOARD OF DIRECTORS APPROVES THE PROJECT FOR LISTING ON MERCATO TELEMATICO AZIONARIO SHAREHOLDERS MEETING CALLED FOR 30 APRIL 2018 SUSPENSION OF EXERCISE OF GPI WARRANTS AS OF 7 APRIL 2018 *** *** *** GPI CLOSES 2017 WITH SIGNFICANT GROWTH: REVENUES +32%, EBITDA +29%, NET PROFIT +26%; PROPOSED GROSS DIVIDEND OF EUR 0.30 PER SHARE 2017 characterised by 8 M&A transactions for a total investment of EUR 26 million, the effects of which are fully reflected in statement of financial position and only marginally in the income statement Revenues: EUR 180 million, +32% (2016: EUR 136 million) - Italy revenues: EUR 167 million, of which: - IT Solutions: EUR 78.0 million, +75% (2016: EUR 44.5 million) - Healthcare Services EUR 81.2 million +7% (2016: EUR 75.9 million) - Foreign revenues: EUR 13 million (2016: EUR 1.6 million) 74% of total revenues, totalling EUR million, derive from Recurring Fees EBITDA: EUR 25.9 million +29% (2016: EUR 20.1 million) Net Profit: EUR 8.2 million +26% (2016: EUR 6.5 million) Net Financial Position: EUR 52.5 million (H1 2017: EUR 22.4 million) Proposed gross dividend of EUR 0.30 per share Tenders awarded in 2017: EUR 52 million Management Performance Indicators - 1,700 customers (1,300 in 2016) - 94% confirmation rate - 25% average tender hit rate GPI SPA via Ragazzi del '99, Trento info@gpi.it 1

2 Trento, 6 April 2018 The Board of Directors of GPI, a leading company in IT Solutions and Healthcare and Social Services, today approved the separate and consolidated financial statements as at 31 December 2017, prepared in accordance with IAS/IFRS accounting standards. Fausto Manzana, Chairman and CEO of GPI: 2017 has provided further impetus to the growth process underway, with an increase in revenues of 32% over The results for the year confirm the soundness of strategic decisions which have led the Group to record a Compound Annual Growth Rate (CAGR) of +35% in revenues for the three-year period , driven by organic CAGR of +20% in line with the growth path outlined when we entered the market. However, due to the timing of acquisitions made in 2017, the results include, to a minimal degree, the financial results of the newly acquired businesses, whose benefits will have a full impact in the current year. Profitability in percentage terms remains solid, with EBITDA of nearly EUR 26 million (+29% compared with 2016) and an EBIT of EUR 15.9 million, ensuring a high level of self-funding for the Group s operations, adequate resources that can be allocated to investments, research, and development, as well as a return on capital that I believe will be fully satisfactory for our many shareholders. We continue our commitment to creating value and expect that 2018 will be characterised by additional growth in revenues and EBITDA, due to the full implementation of the business activities acquired and organic growth in terms of new orders, for which the Group built a solid foundation in 2017.Access to the MTA market, in accordance with commitments made to our investors, will allow us to further expand the Company s visibility and strengthen its competitive position. INTRODUCTION ON 2017 M&A TRANSACTIONS AND THE SCOPE OF CONSOLIDATION For an accurate and complete understanding of the 2017 results reported below, it should first be noted that during the year the Group benefited from transactions completed at the end of 2016: INSIEL MERCATO SPA and PCS GMBH, acquired on 29 December 2016, contributed to the consolidated income statement beginning in 2017, with revenues of EUR 24.2 million and EUR 10.4 million, respectively. GPI also strengthened its scope of consolidation and the technology and production offer by acquiring 8 majority shareholdings in 2017, which involved a total investment of EUR 26 million. The timing of the transactions that, as shown in the table below, were mainly completed in the second half of the year, affects the 2017 results, which fully integrate the effects of the businesses acquired in the statement of financial position, while the income statement includes only the relative pro-rata effects (in terms of revenues, for example, the pro-rata contribution of the acquired companies is EUR 5 million). Company Closing Transaction Business activity BIM ITALIA SRL 21/12/ % acquisition XIDERA SRL 04/12/ % acquisition HEMASOFT SOFTWARE SL 28/11/ % acquisition INFO LINE SRL 23/10/ % acquisition NUOVA SIGMA SRL 10/08/ % acquisition Leading provider of management systems for healthcare agencies and hospitals governance of hospital activities Solutions for reception management code resetting, appointment management, rationalisation of user routing Software solutions for blood transfusion centres and blood banks (also tissue and breast milk). Partner/reseller network in 55 countries. 100% ownership of Hemasoft America Corp. Application software and services for human resource management. Strong presence in Emilia Romagna and Lombardy. Information technology services applied to the automated management of healthcare and human resources, both for public and private entities. 100% GPI SPA via Ragazzi del '99, Trento info@gpi.it 2

3 ownership of EDP SRL NET MEDICA SRL 09/08/ % acquisition DO.MI.NO. SRL 19/06/2017 SALURIS ZOO. 15/03/2017 Purchase 70% (public tender) 40% acquisition (reaching 60% of capital) Automated management solutions for general practitioners. Healthcare services, particularly administrative (secretarial, etc.). Provides services at 3 area hospitals: Dolo, Mirano, and Noale. Distribution in the Polish market of healthcare software, systems and devices The analysis of the key economic-financial indicators should be read in consideration of the significant growth of Net Invested Capital, the long-term usefulness associated with implementing strategic plans at the consolidated level, and the time lag between the closing of the various transactions and the full integration of the companies acquired in the Group s business and organisational structure. This consideration must also be made in reference to transactions carried out at the end of 2016 (Insiel Mercato and PCS), for which the integration is still ongoing. KEY CONSOLIDATED RESULTS AS AT 31 DECEMBER 2017 REVENUE Revenues amounted to EUR million, up 32.1% compared with EUR million in 2016 as a result of the positive contribution of all business areas. An internal growth component (+6%) and a growth component related to the M&A transactions (+26%) generated this performance. REVENUES BY BUSINESS AREA 88% of GPI Group s revenues are represented by 2 business areas: - IT Solutions: software solutions and services for managing administrative and accounting processes of the Public Administration, care processes in hospitals and regions, and social-assistance processes of public and private structures; - Healthcare Services (BPO): auxiliary administrative services, such as appointments for health services, contact & call centres, front-end/desks, secretarial, cultural intermediation for foreigners, and other. REVENUES BY BUSINESS AREA (EUR mln) 2017 % 2016 % % Chg IT Solutions % % +75% Healthcare Services (BPO) % % +7% Other business areas % % +33% Revenue % % +32% IT Solutions represent the Group s technology driver, posting revenues of EUR 78.0 million (43% of total), up 75% compared with EUR 44.5 million in 2016 (33% of total). The loyalty of public customers is substantially confirmed, while satisfactory growth is reported in private healthcare. The Group continues its plans in the area of Chronic Care, where GPI is at the forefront in terms of competitive positioning. With regard to completed M&A transactions, the following were particularly important: exploratory activities and the framework and production approach conducted on the newly acquired Nuova Sigma/Info Line for creating a leading healthcare HR hub at a national level; Hemasoft (blood banks as well as tissue and breast milk databases); Net Medica (IT outsourcing and services to general practitioners); Xidera (access and reception management); and Bim Italia (business management intelligence for healthcare). Healthcare Services (BPO) represents the business area in which GPI Group plays a leadership role throughout the country. Revenues were EUR 81.2 million (45% of total), +7% compared with EUR 75.9 million in 2016 (56% of total). Over a third of the Italian population uses GPI structures to schedule GPI SPA via Ragazzi del '99, Trento info@gpi.it 3

4 appointments with and contact healthcare facilities. With the acquisition of Domino Srl, the Group incorporated an important company, specialised in hospital department administrative management. GPI was the winner in the Lazio Region tender for Central Appointments Centre (CUP) service desks, and was awarded new contracts in Enna and Salerno, among others. In the largest Italian region in terms of the budget for health services, Lombardy, activities developed through the subsidiary Lombardia Contact srl are particularly important. Note the positive contribution from other business areas (Social-Welfare Services, Logistics and Automation, Professional ICT Services, and Payment Solutions), which recorded total revenues of EUR 20.8 million, +33% compared with EUR 15.7 million in REVENUES FROM RECURRING FEES An analysis of revenues by type shows that a significant portion is generated by recurring fees, equal to EUR million in 2017 (74% of total). This is in relation to the IT Solutions business area, where revenues from recurring fees represent approximately 60% of the total, as well as Healthcare Services BPO (95%), Professional ICT Services (approximately 90%), and Payment Solutions (about 50%). REVENUES BY GEOGRAPHIC AREA Revenues were primarily generated in Italy, which posted growth of 24% to EUR million, compared with EUR million in However, 2017 also recorded a significant increase in foreign revenues, amounting to EUR 13.1 million (7% of total), mainly due to the consolidation of PCS GMBH, acquired in December 2016, which contributed with revenues of EUR 10.4 million. REVENUES BY GEOGRAPHIC AREA (EUR mln) 2017 % 2016 % % Chg Italy % % +24% Foreign % 1.6 1% > +100% Revenue % % +32% GROSS OPERATING MARGIN (EBITDA) Gross Operating Margin (EBITDA) was EUR 25.9 million, +29% compared with EUR 20.1 million in The EBITDA margin amounted to 14.4%: the change compared with 2016 (14.8%) reflects the business and organisational integration phase that became necessary due to the important external growth transactions carried out over the two-year period, for a total of over EUR 60 million of investments in terms of Enterprise Value. In this regard, note that the consolidated income statement includes EUR 1.5 million of extraordinary and non-recurring costs incurred for M&A activities and for listing on the stock exchange. Excluding these components, the Group would have an adjusted EBITDA of EUR 27.4 million (15.2% of revenues). The operating cost structure shows that the personnel costs represent 57% of revenues, a decrease from 2016, while there has been an increase in the percentage of consumables (particularly due to the increase in manufacturing activities in Logistics & Automation) and costs for general services and expenses. GPI SPA via Ragazzi del '99, Trento info@gpi.it 4

5 The following table shows the EBITDA contribution of the various business areas. EBITDA BY BUSINESS AREA (EUR mln) 2017 % of revenues 2016 % of revenues IT Solutions % 16.1* 21%* Healthcare Services (BPO) 6.4 8% 6.6 9% Other business areas 3.4 8% -0.3 n.a. EBITDA: % % * pro-forma including Insiel Mercato and PCS for 12 months NET OPERATING MARGIN (EBIT) Net Operating Margin (EBIT) was EUR 15.9 million, up 7.4% compared with EUR 14.8 million in 2016, after depreciation, amortisation, and write-downs of EUR 9.2 million (EUR 5.2 million in 2016). PRE-TAX PROFIT (EBT) Pre-Tax Profit (EBT) was EUR 13.6 million, up 12.0% compared with EUR 12.2 million in 2016, after net financial charges of EUR 2.2 million (EUR 2.5 million in 2016). PROFIT FOR THE YEAR Profit for the year was EUR 8.2 million, up 25.7% compared with EUR 6.5 million in 2016, after income taxes of EUR 5.5 million (EUR 5.7 million in 2016). NET WORKING CAPITAL Net Working Capital related to commercial activities, including those for customer contracts, was EUR 66.2 million, compared with EUR 36.4 million in This change is the combination of an increase in trade receivables associated with the significant increase in revenues achieved in 2017 and the strengthening of net working capital from newly acquired companies. EQUITY Equity amounts to EUR 64.3 million; the change compared with 2016 (EUR 61.3 million) reflects the disbursement of 2016 dividends and the profit generated during the year. The Group is financing 55% of its Net Invested Capital through its capital. NET FINANCIAL POSITION The Net Financial Position amounted to EUR 52.5 million, compared with EUR 22.4 million at 30 June 2017 and EUR 9.9 million as at 31 December The change reflects the considerable investments in fixed assets and current assets. Note that, due to the improvement in the CERVED Rating issued on 22 April 2017 (from B1.1 to A3.1), GPI was able to benefit from a step-down in the rates applied to its bond issues, and in particular: 1) a reduction from 4.30% to 4.00% on GPI Fixed Rate 4.3% Ot23, amounting to EUR 15 million and 2) a reduction from 4.25% to 4.00% of GPI Fixed Rate , issued for EUR 4.75 million, repaid and cancelled in March EMPLOYEES GPI SPA via Ragazzi del '99, Trento info@gpi.it 5

6 The number of GPI Group employees as at 31 December 2017 was 3,904 (3,675 as of 31 December 2016), distributed across the numerous offices throughout Italy and at subsidiaries in Germany, Austria, Poland, Spain, and the United States. KEY RESULTS OF PARENT COMPANY GPI SPA AS AT 31 DECEMBER 2017 The Parent Company GPI SPA recorded total revenues of EUR million (+23% compared with 2016 with EUR 83.4 million), EBITDA of EUR 14.8 million, and net profit of EUR 7.9 million. DIVIDEND The Board of Directors resolved to propose to the Shareholders Meeting a gross dividend equal to EUR 0.30 for each entitled share (hence excluding the 61,320 Category C special shares as well as treasury shares in portfolio on the coupon detachment date). - - If approved by the Shareholders Meeting, the dividend will be paid on 9 May 2018 no. 2 coupon detachment date of 7 May 2018 and record date of 8 May SIGNIFICANT EVENTS SUBSEQUENT TO REPORTING DATE INTERNATIONAL PRESENCE In January 2018, the subsidiary Argentea srl established ARGENTEA SP ZOO in Poland, a Northern European branch for the Payment Solutions business area. ISO 37001:2016 ANTI-BRIBERY MANAGEMENT SYSTEM INTERNATIONAL CERTIFICATION In February 2018, GPI obtained the ISO 37001:2016 international certification (Anti-Bribery Management System), which certifies the adoption of a procedure management standard, both internally and externally, that supports and facilitates the development of a culture of integrity, transparency, and compliance designed to prevent and combat corruption. REPAYMENT OF THE GPI FIXED RATE BOND In March 2018, the GPI fixed rate bond (ISIN IT ) was completely repaid, which had been issued on 29 December 2015 for EUR 4,750,000 and fully subscribed by professional investors. The reimbursement is part of actions to optimise borrowing rates and support the Group s growth plans, which led to the issue on 17 November 2017 of the fourth GPI 3% mini-bond for EUR 20 million, listed on the Extra-MOT PRO segment. M&A On 16 March 2018, GPI acquired 100% of ERRE EFFE SRL, specialised in IT healthcare solutions and assumed the remaining portion (45%) of INSIEL MERCATO SPA, which is now fully owned. CONCLUSION OF TREASURY SHARE PURCHASE PROGRAMME On 21 March 2018, the treasury share purchase programme was concluded, with a total of 41,424 treasury shares held (0.26% of share capital). 5G HEALTHCARE GPI participates in the BariMatera5G project to implement application solutions in the following usage scenarios: remote diagnosis and remote monitoring of vital signs and patient conditions, and care@home, telemedicine at home for chronic patients. BariMatera5G is the project with which TIM, Fastweb and Huawei won the MISE (Ministry of Economic Development) tender to test new 5G technology, with an investment of over EUR 60 million in 4 years. GPI SPA via Ragazzi del '99, Trento info@gpi.it 6

7 OUTLOOK We expect the current year will be characterised by additional growth in revenues and EBITDA, due to the full implementation of the business activities acquired and organic growth in terms of new orders, for which the Group built a solid foundation in During the year, activities will continue for commercial and production integration of newly acquired companies, rationalisation of the corporate structure by incorporating fully owned companies, as well as strengthening of internal information systems. The Group will also continue to evaluate acquisition opportunities that the market may present in order to ramp up the globalisation process. PROTECTION MECHANISM Based on the results achieved, the Board of Directors has assumed that the conditions envisaged by the Protection Mechanism for the distribution of Remedy Shares, described in the AIM Italia Admission Document of December 2016, should not occur. According to the contractual agreements signed at the time, the final determination for this matter is made by KPMG, the current independent auditors of GPI, which will inform the Board of Directors prior to the approval of the financial statements as at 31 December 2017 by the Shareholders Meeting. LISTING ON MERCATO TELEMATICO AZIONARIO AND RESIGNATION OF BOARD OF DIRECTORS Consistent with prior communications to the market, the Board of Directors also resolved to submit to the Shareholders Meeting the request for admission to listing of GPI ordinary shares and warrants on the Mercato Telematico Azionario organised and managed by Borsa Italiana S.p.A., preferably on the Star Segment. In consideration of the fact that the mandate for the current Board of Directors expires on the date of admission to listing on the Mercato Telematico Azionario, all directors in office have resigned effective from the next Shareholders Meeting in order to allow the Board s renewal in preparation for the launch of the project for listing on said market. CONVOCATION OF ORDINARY AND EXTRAORDINARY SHAREHOLDERS MEETING The Board of Directors resolved to convene the ordinary and extraordinary Shareholders Meeting for 30 April at 3:00 pm on first call, and if necessary, on 7 May on second call, at 3:00 pm in Milan, Via del Lauro no. 7, at the law firm Pavia e Ansaldo, to resolve on approving the financial statements and the consequent profit allocation as well as presentation of the consolidated financial statements. The Shareholders Meeting will also be asked to approve resolutions concerning the approval of the request for admission to listing on the Mercato Telematico Azionario organised and managed by Borsa Italiana S.p.A. of GPI ordinary shares and warrants, appointment of the Board of Directors, conferment of the nine-year assignment for the legal audit of the accounts, authorisation to purchase and dispose of treasury shares, as well as approval of a Shareholders Meeting regulation and the new text of the Articles of Association. The documentation for the Shareholders Meeting will be made available to the public, in accordance with the law, at the registered office in Trento, Via Ragazzi del 99 no. 13, and will also be available on the website (Investor Relations/Shareholders Meetings section).shareholders will have the right to obtain a copy. SUSPENSION OF EXERCISE OF GPI WARRANTS AS OF 7 APRIL 2018 Holders of GPI Warrants are informed that, following the convening of shareholders to approve the financial statements as at 31 December 2017, the exercise of said warrants will be suspended, in compliance with the provisions of the GPI Warrant Regulations, from 7 April 2018 until the day (inclusive) of the Shareholders GPI SPA via Ragazzi del '99, Trento info@gpi.it 7

8 Meeting, and in any case up to the dividend payment date (exclusive) that may be resolved by the Shareholders Meeting. GPI GROUP GPI (GPI:IM), with registered office in Trento and more than 3,900 employees, was founded in 1988 by Fausto Manzana and has numerous branches throughout Italy and abroad. As a result of its cutting-edge technology in the field of social-healthcare systems and new hi-tech services for healthcare, it understands the transformation needs and the innovative forces of its numerous customers in the public and private sector. The Group s robust growth has been driven by considerable investments in the R&D Centre which, in partnership with leading Italian universities and research institutions, aims to advance scientific, technological, functional, and process knowledge applied to the sectors of e-health sectors, e-welfare, well-being. The Group s offer combines specialist expertise in the IT sphere and consulting and planning capability which enable activities in different business segments: IT Solutions, Healthcare Services, Logistics and Automation, Professional ICT Services, and Payment Solutions. In recent years, the Group has grown by acquiring similar or complementary companies and developing business in Italy and abroad. Listing on AIM Italia, which occurred as a result of the merger with SPAC Capital For Progress 1, introduced new financial resources of over EUR 50 million and is designed to strengthen the Group s presence nationally and internationally. ISIN ordinary shares: IT ISIN Warrant GPI SpA : IT Press release available on and CONTACTS INVESTOR RELATIONS IR Top Maria Antonietta Pireddu m.pireddu@irtop.com Tel: Via C. Cantù, Milan GPI Stefano Corvo stefano.corvo@gpi.it Tel: Via Ragazzi del 99, Trento MEDIA RELATIONS IR Top Domenico Gentile, Antonio Buozzi ufficiostampa@irtop.com Tel: Via C. Cantù, Milan GPI Daniela Filbier daniela.filbier@gpi.it Tel: Via Ragazzi del 99, Trento NOMAD Banca Akros cm@bancaakros.it Tel: V.le Eginardo, Milan SPECIALIST UBI Banca Marco Germano marco.germano@ubibanca.it Tel: P. V. Veneto, Bergamo GPI SPA via Ragazzi del '99, Trento info@gpi.it 8

9 CONSOLIDATED Income Statement In thousands of Euro Note Revenue 178, ,118 Other income 1, Total revenue and other income , ,162 Raw materials and consumables 7.2 (7.180) (4.113) Service costs 7.3 (40.223) (30.164) Personnel expenses 7.4 ( ) (79.593) Amortisation, depreciation and impairment losses 7.5 (9.161) (5.172) Other provisions 7.6 (872) (139) Other operating costs 7.7 (4.278) (2.205) Operating profit 15,867 14,777 Financial income Financial expense (2.797) (2.507) Net Financial expense 7.8 (2.230) (2.455) Share of (profit)/loss of equity-accounted investees net of tax (108) Pre-tax profit 13,637 12,214 Tax expense 7.10 (5.477) (5.723) Profit for the year 8,160 6,491 Profit / (loss) for the year attributable to: Owners of the parent 7,956 6,230 Non-controlling interests GPI SPA via Ragazzi del '99, Trento info@gpi.it 9

10 CONSOLIDATED Balance Sheet In thousands of Euro Note (restated) Assets Goodwill ,854 6,192 Other intangible assets ,306 27,037 Property, plant and equipment ,772 13,872 Equity-accounted investments for using the equity method Equity-accounted investments in subsidiaries Non-current financial assets Deferred tax assets 6.5 3, Contract costs 6.7 9,050 10,732 Other non-current assets Non-current assets 102,047 64,399 Inventories 6.7 4, Assets from contracts with customers ,103 39,661 Trade receivables and other receivables ,513 29,923 Cash and cash equivalents ,936 71,843 Current financial assets 6.4 6,164 4,509 Current tax assets ,135 Assets held for sale - - Current assets 157, ,108 Total assets 259, ,507 Net assets Equity Share Capital 8,523 8,526 Share premium reserve 55,733 55,120 Other reserves (8.683) (8.897) Net income of the Group 7,695 5,641 Other reserves and retained earnings / (losses carried forward), including profit / (loss) for the year (988) (3.256) Capital and reserves attributable to owners of the parent ,267 60,390 Capital and reserves attributable to non-controlling interests , Total equity 64,339 61,337 Liabilities Non-current financial liabilities ,512 50,894 Non-current employee benefits ,366 Non-current provisions for risks and charges ,347 1,551 Deferred tax liabilities 6.5 6,018 6,360 Other non-current liabilities ,856 3,742 Non-current liabilities 95,781 66,913 Contract liabilities 6.7 1,277 2,106 Trade and other payables ,823 47,568 Current employee benefits Current provisions for risks and charges ,233 Current financial liabilities ,046 35,358 Current tax liabilities 6.9 2, Liabilities associated with assets held for sale - - Current liabilities 99,038 88,257 Total liabilities 194, ,170 Total equity and liabilities 259, ,507 GPI SPA via Ragazzi del '99, Trento info@gpi.it 10

11 CONSOLIDATED Cash Flow Statement In thousands of Euro Note Cash flows from operating activities Profit / (Loss) for the year 8,159 6,491 Adjustments for: - Depreciation of property, plant and equipment 7.5 5,179 1,447 - Amortisation of intangible assets 7.5 1,858 1,802 - Amortisation of contract costs 7.5 2,111 1,504 - Other provisions CFP1 merger cost - 1,145 - Net Financial expense 7.8 2,231 2,455 - Share of (profit)/loss of equity-accounted investees, net of tax Tax expense ,477 6,142 Changes in working capital and other changes 6 (33.609) (10.517) Interest paid (2.585) (2.506) Income taxes paid (1.586) (4.510) Net cash and cash equivalents generated by operating activities (11.879) 3,699 Cash flows from investing activities Interest collected Dividends collected Acquisition of subsidiaries, net of liquidity acquired 5 (40.534) (14.928) Acquisition of property, plant and equipment 6.2 (1.543) (4.237) Development costs and other in intangible assets investments 6.1 (3.919) (2.788) Other investments in financial assets (1.337) 438 Net cash and cash equivalents absorbed by investing activities (47.052) (21.462) Cash flows from financing activities Amounts collected on issue of shares ,272 Purchase of treasury shares (1.440) - Amounts collected from undertaking of financial liabilities 44,804 36,114 Reimbursements of financial liabilities (33.134) (11.497) Acquisition of non-controlling interests Finance lease payments (775) (1.056) Variazione dei debiti per acquisto partecipazioni 21,532 - Dividends paid 6.10 (4.602) (1.800) Net cash and cash equivalents generated by financing activities 27,024 71,033 Net increase (decrease) in cash and cash equivalents (31.907) 53,270 Cash and cash equivalents 1 January Effect of exchange rate fluctuations on cash and cash equivalents 71,843 18,572 - Cash and cash equivalents as at 31 December ,936 71,843 GPI SPA via Ragazzi del '99, Trento info@gpi.it 11

12 GPI S.P.A. Income Statement In thousands of Euro Note Revenue 96,376 80,951 Other income 6,331 2,452 Total revenue and other income ,708 83,403 Raw materials and consumables 6.2 (4.999) (2.380) Service costs 6.3 (23.426) (20.383) Personnel expenses 6.4 (58.063) (47.451) Amortisation, depreciation and impairment losses 6.5 (2.976) (2.243) Other provisions 6.6 (549) (124) Other operating costs 6.7 (1.436) (1.075) Operating profit 11,259 9,747 Financial income Financial expense (2.570) (2.321) Net Financial expense 6.8 (2.097) (2.155) Share of (profit)/loss of equity-accounted investees net of tax 6.9 2,258 2,353 Pre-tax profit 11,420 9,944 Tax expense 6.10 (3.531) (2.993) Profit for the year 7,888 6,951 GPI SPA via Ragazzi del '99, Trento 12

13 GPI S.P.A. Balance Sheet In thousands of Euro Note Assets Goodwill 5.1 1,630 1,630 Other intangible assets 5.1 9,808 7,994 Property, plant and equipment ,798 11,141 Equity-accounted investments for using the equity method ,848 33,032 Equity-accounted investments in subsidiaries - - Non-current financial assets 5.4 1,705 1,994 Deferred tax assets 5.5 2,606 2,315 (restated) - Contract costs Other non-current assets Non-current assets 94,689 58,111 Inventories 5.7 2,759 1,671 Assets from contracts with customers ,510 18,867 Trade receivables and other receivables ,815 19, ,858 61,912 Cash and cash equivalents Current financial assets 5.4 5,146 11, ,112 Current tax assets Assets held for sale - - Current assets 106, ,964 Total assets 201, ,074 Net assets Equity Share Capital 8,553 8,526 Share premium reserve 55,733 55,120 Other reserves and retained earnings / (losses carried forward), including profit / (loss) for the year (415) (2.492) Total equity ,870 61,155 Liabilities Non-current financial liabilities ,942 50,207 Non-current employee benefits ,516 1,462 Non-current provisions for risks and charges Deferred tax liabilities Other non-current liabilities ,283 2,626 Non-current liabilities 71,623 55,750 Contract liabilities 5.7 1,181 1,185 Trade and other payables ,673 26,378 Current employee benefits Current provisions for risks and charges Current financial liabilities ,578 28,634 Current tax liabilities 5.9 2, Liabilities associated with assets held for sale - - Current liabilities 66,049 57,169 Total liabilities 137, ,919 Total equity and liabilities 201, ,074 GPI SPA via Ragazzi del '99, Trento info@gpi.it 13

14 GPI S.P.A. Cash Flow Statement In thousands of Euro Cash flows from operating activities Note Profit / (Loss) for the year 7,888 6,951 Adjustments for: - Depreciation of property, plant and equipment 6.5 1,060 1,061 - Amortisation of intangible assets 6.5 1,388 1,183 - Amortisation of contract costs Other provisions CFP1 merger cost - 1,145 - Net Financial expense 6.8 2,097 2,156 - Share of (profit)/loss of equity-accounted investees, net of tax 6.9 (2.258) (2.353) - Tax expense ,531 2,993 Changes in working capital and other changes (21.560) (2.460) Interest paid (2.476) (1.661) Income taxes paid (82) (2.598) Net cash and cash equivalents generated by operating activities (9.692) 6,541 Cash flows from investing activities Interest collected Dividends collected Acquisition of subsidiaries 4 (32.953) (18.702) Acquisition of property, plant and equipment 5.2 (345) (4.108) Development costs and other in intangible assets investments 5.1 (3.604) (1.847) Other investments in financial assets 9, Net cash and cash equivalents absorbed by investing activities (26.505) (23.764) Cash flows from financing activities Amounts collected on issue of shares ,272 Purchase of treasury shares (1.440) - Amounts collected from undertaking of financial liabilities 38,500 35,358 Reimbursements of financial liabilities (45.145) (10.827) Acquisition of non-controlling interests (126) - Finance lease payments (502) (461) Variazione dei debiti per acquisto partecipazioni 11,056 - Dividends paid 5.10 (4.602) (1.800) Net cash and cash equivalents generated by financing activities (1.620) 71,542 Net increase (decrease) in cash and cash equivalents (37.817) 54,319 Cash and cash equivalents 1 January 61,912 7,593 Disponibilità liquide apportate da fusioni Effect of exchange rate fluctuations on cash and cash equivalents - - Cash and cash equivalents as at 31 December ,858 61,912 GPI SPA via Ragazzi del '99, Trento info@gpi.it 14