The first italian company builder presents its year end report for 2016. Last year showed the growth of internationalization and a solid development in the strategic repositioning of TerniEnergia, the main asset in the investment portfolio of the holding; to be recorded the significant growth of assets and business of the subsidiaries startups (established Numanova in the field of advanced metallurgy for 3D printing with metallic powders; Skyrobotic has been strengthened at equity level and has developed the B2B market for high-standing customers; established, between Italeaf HK and the Chinese partner Wulian, the JV WSAVE active in the IoT sector); exit of Wisave, as provided for in the strategic plan, with the acquisition by TerniEnergia of a stake of 88,22%, in order to create economic and industrial value within the Group.

 

  • Net asset value amounted to Euro 23.6 million (Euro 1.53 per share) as at December 31, 2016.
  • Core shareholdings contributed for Euro 24.4 million to Gross asset value during 2016, of which TerniEnergia (listed in Italy) for Euro 17.9 million.

Financial information

  • Consolidated net profit for the year was Euro -4.5 million (Euro -2 million for Italeaf parent company).
  • Consolidated Revenues amounted to Euro 85.8 million (Euro 7 million for Italeaf parent company).
  • Total consolidated NFP amounted to Euro 111.1 million (Euro 17 million for Italeaf parent company); Shareholders’ Equity was 61.8 million (Euro 27.3 million for Italeaf parent company)
  • Step down of the Board member Marco Diamanti, co-opted the new Director Domenico De Marinis, with experience in the financial sector

 

 

2016 was an industrially eventful year for Italeaf S.p.A., the first italian company builder, both in terms of new business development and internationalization for TerniEnergia, both in the progress made by the subsidiaries startup, which laid the foundations for further growth in the years ahead.

 

Commenting on the results, the Chairman Mr Stefano Neri said:

“2016 was a very important year for our Company. The most significant result we achieved was the completion of a further stage of transformation of TerniEnergia, which represents 38.44% of the Gross Asset Value and determines a large part of our performance. During the year, TerniEnergia completed the acquisitions of the two digital companies Softeco Sismat andSelesoft Consulting, representing the Italian excellence in ICT solutions for the energy sector and that will allow our Group to be seen as the Italian first mover in the international development of the new smart and micro-grid business. The technological benefits of this corporate integration, will represent a great chance for the entire Italeaf Group, introducing the digital transformation also to the subsidiary companies, increasing their level of innovation and the growth opportunities. Precisely in this direction, we decided to establish Vitruviano Lab, a research center with a solid capitalization of EUR 1.8 million, and with tangible industrial assets, such as former Alcatel laboratory. In our strategic plan, this company – which already provides the involvement of other active R&D partners in promising fields such as special materials, green chemistry and circular economy – will be a catalyst for new opportunities and innovative business, as well as helping to attract facilitated financing instruments for the applied research.

During the 2016, Italeaf also achieved the target to enhance another start-up investee, with the exit of Wisave and the signing of a joint venture agreement with the Chinese multinational Wulian, confirming the goals of the strategic plan. The manufacturing newco Numanova, for the production of metal powders for the additive manufacture, has obtained the industrial and environmental permits for its activity and now it can program its own path of development and the start of the phase of production. Finally, Italeaf has been laid the basis for the achievement of important goals in business sustainability and value creation. Despite these excellent industrial and operating results, the contingent circumstances have forced us to depreciate the non-strategic minority interests in certain banks. It is an isolated fact, non-recurrent, but this vicissitude has affected the Group’s financial results.

Assuming the role of Chairman of Italeaf, I had in mind a priority: to renew our business and, at the same time, to program a new season of growth, with the aim of ensuring greater visibility and alignment between the interests of all our shareholders. Today we are confident to be in the position to make a consistent future development path, focusing on industrial innovation and facing with competitive solutions the international markets with the highest growth rate. Let us look, then, with pride to our recent past and to what we have achieved, but now we are giving our attention mainly into building better future for all our shareholders”.

 

The Board of Directors of Italeaf has approved today its financial report for 2016. It shows that following significant events has occurred during the year, and in particular in the second half.

 

Consolidated financial results (under IFRS international accounting standards)

The Net asset value (NAV) amounted to Euro 23.6 million (Euro 1.53 per share) as at December 31, 2016. The core shareholding contributed to Gross Asset Value during 2016 for Euro 24.4 million, of which Euro 17.9 million related to TerniEnergia (listed on the STAR segment of the Italian Stock Exchange).

Revenues amounted to Euro 85.8 million (Euro 371.3 million as at 31/12/2015, -76.9%), with a decrease due to the deconsolidation of Free Energia (energy trading) by TerniEnergia Group.

EBITDA amounted to Euro 17.1 million (Euro 16.6 million as at 31/12/2015, -35.6%).

EBIT amounted to Euro 2.2 million (Euro 16.3 million as at 31/12/2015, -86.6%).

Net result amounted to Euro -4.5 million (Euro 2.5 million as at 31/12/2015), while the EBT amounted to EUR -3.5 million (Euro 5.4 million at 31/12/2015).

The Net financial position amounted to Euro 111.1 million (Euro 104.2 million as at 31/12/2015).

Net equity was Euro 61.8 million (Euro 64.5 to 31/12/2015).

 

Separated financial results of the parent company Italeaf S.p.A. (According to the ITA GAAP method)

Revenues amounted to Euro 7 million (Euro 5.4 million as at 31/12/2015, +28.4).

EBITDA amounted to Euro 3.8 million, a significant increase (+104%) compared to December 31, 2015 (Euro 1.9 million).

EBIT amounted to Euro 3.2 million, with an improvement of 187.9% compared to 31/12/2015 (Euro 1.2 million).

Net result amounted to Euro -2 million (Euro 2.4 million as at 31/12/2015), while the EBT amounted to -2.5 million (Euro 1.75 million as at 31/12/2015), after depreciations related to non-strategic minority stakes held in banks for about Euro 5 million. Without considering these write-downs, however unrelated to the normal operations of the Company’s, the before tax profit would have amounted to Euro 2.6 million.

The Net financial position was Euro 17 million (Euro 16.1 million as at 31/12/2015).

Shareholders’ equity amounted to Euro 27.3 million (Euro 29.9 million as at 31/12/2015). Thanks to these results, the ratio NFP/Equity is equal to 0,63x, in line with the targets of the Plan (lower in the three years to 0.8x).

 

Dividend policy

The Board of Directors proposed to carry forward the loss for the year 2016.

 

Industrial results

  • TerniEnergia, main asset in the portfolio of the holding, has strengthened the internationalization with the achievement of important contracts in Africa and has completed new, relevant developments for its strategic repositioning, completing two major acquisitions in the ICT sector and starting the due diligence for the integration of a new company in the field of energy management, the dual fuel trading activity of gas and electrical energy;
  • the business of the subsidiaries start-ups has grown significantly. In particular, Skyrobotic consolidated its industrial activities, repositioned its own business model towards the B2B market and strengthened its equity structure; through Italeaf HK was established a JV WSAVE Co. Ltd. with Wulian, a Chinese company specializing in the Internet of Things (IoT) and member of the Board of Directors of the ZigBee Alliance; It was established Numanova SpA, a company active in the production of metal powders for Additive Manufacturing (3D printing), who got the environmental and production permits for the start-up of industrial activities;
  • the company completed the exit of Wisave, as scheduled in the strategic plan. The transaction closed with TerniEnergia represents a case of creating value both economic as industrial within the Group, thanks to the ”Open innovation” approach, integrating opportunities and technological skills into the Group. TerniEnergia acquired the 88.22% of the shares, the 78,22% from Italeaf and 10% from the cofounder Energy System. The transaction had a countervalue of Euro 0.7 million;
  • TerniEnergia connected to the grid and completed tow the “giant” construction sites in South Africa ensuring adherence with the timeline and with the contracts of EPC and O&M;
  • sold 50% of the JV Opera Power Srl, owner of a PV plant of around 0,9 MWp; the transaction price amount to € 327 thousand;
  • TerniEnergia finalized the acquisitions of Softeco Sismat and Selesoft Consulting, for a transaction fee of 3 million TerniEnergia treasury Shares to be listed on the STAR segment of the Italian Stock Exchange and Euro 2.3 million to be paid in cash in two phases (Euro 1 million by 30 November 2017 and Euro 1.3 million by March 31, 2018) no award of interest. The transaction enabled the Group to enter the promising field of Digital Energy (Smart and Micro-grids, digital engineering and smartness for energy and grids, telecommunications, smart solutions, IoT);
  • was established the nonprofit research center Vitruviano Lab, with a share capital of Euro 1.8 million and the transfer of assets such as former Alcatel laboratory, acquired by the Group. The activities of the new company will unfold in the areas of special materials, the digital transformation, green chemistry and clean technologies.

 

The Board also took note of the step down of Mr Marco Diamanti from the Board of Directors of Italeaf, for personal reasons. The Chairman Stefano Neri, on behalf of the entire Board, expressed deep gratitude to Mr Diamanti for his commitment and the work done and for his valuable contribution to Italeaf. Accepted the resignation of Mr Diamanti, in accordance with the regulation and the Bylaws, the Board has co-opted as Independent Director Mr Domenico De Marinis, manager with many years of experience in banking groups.

The curriculum vitae of the newly appointed Director is publicly available on the Company’s website at www.italeaf.com (Section Corporate Governance / Board of Directors).