The Board of Directors of Biesse S.p.A. beside to confirm the listing project for the controlled company HSD S.p.A. always in the STAR segment of the Italian Stock Exchange - during today’s meeting in Pesaro has approved the preliminary financial statements for the year ended 31.12.2017.

The Consolidated Results achieved by the Biesse for the 12 months of 2017 are as follows:

• Net revenues Euro 690.1 million (+11.6% compared with the same period of 2016)
• Value Added Euro 288.6 million (+14.3% compared with the same period of 2016)
• EBITDA (before non-recurring items) Euro 89.5 million (+17.9% compared with the same period of 2016)
  • EBITDA (post non-recurring items) Euro 87.6 million (+17.5% compared with the same period of 2016)
• EBIT (before non-recurring items) Euro 66.9 million (+18.7% compared with the same period of 2016)
  • EBIT (post non-recurring items ) Euro 63.6 million (+15.5% compared with the same period of 2016)
• Pre-tax profit Euro 60.8 million (+16.1% compared with the same period of 2016)
• Net profit Euro 42.8 million (+45.3% compared with the same period of 2016) – tax rate 29.6%

Net Financial Position:
At 31 December 2017 the Group’s Net Financial Position was positive for Euro 30.3 million representing an improvement of Euro 25.4 million compared to the position at the end of 2016. The improved profitability combined with continued focus on the trend of Net operating working capital remain the foundations of the cash generation (free cashflow of more than Euro 35 million) generated net of planned investments. The positive delta of the Net Financial Position compared to last December was even more significant as it includes the expected payment of dividends totalling Euro 9.8 million (May 2017).

Geographical/ divisional breakdown of revenues
The geographical breakdown of Group net sales (consolidated revenues) at the end of December 2017 is as follows:

• Western Europe 44.8% (45.4% in 2016) – of which Italy 16.6% (15.5% in 2016) with a year-on-year increase in
• volumes of 10.1%
• Eastern Europe 13.4% (12.6% in 2016) with a year-on-year increase in volumes of 18.9%
• North America 16.2% (17.7% in 2016) with a year-on-year increase in volumes of 1.9%
• Asia Pacific 22.2% (20.8% in 2016) with a year-on-year increase in volumes of 18.9%
• Rest of the World 3.5% (3.5% in 2016) with a year-on-year increase in volumes of 9.4%

The divisional breakdown of revenues by principal segment is as follows:

• Wood division 70.9% (72.9% in 2016)
• Glass/stone division 15.7% (15.5% in 2016)
• Mechatronics division 14.3% (14.0% in 2016)

Capital position:
Group Net Shareholders’ Funds at 31 December 2017 were Euro 188.3 million (Euro 159.7 million at 31 December 2016).
Net Invested Capital at end-2017 was Euro 158.1 million (Euro 154.8 million at 31 December 2016).

Economic context – order intake:
The international macro-economic climate, despite some country-specific exceptions in which politico-economic uncertainty persists, is showing widespread indications of recovery. The leading trade associations for the Wood, Glass & Stone sectors report that 2017 should show a gradual improvement in sector results, particularly in the domestic market and forecasts for 2018 are moderately optimistic. Expectations for the sectors served by the Mechatronics division are much more positive, where growth – beyond organic development of the core business- is tied to the potential for product diversification and therefore of the end-user markets (metals – advanced materials).
On the basis of the results achieved in 2017 Biesse has significantly outperformed the indications given for its core sectors, both in terms of order intake and in terms of growth in its production order book. Total order intake for the Biesse (equipment only) in 2017 was 17% higher than in 2016, while the order book totalled more than Euro 215 million at end-2017 (+31% compared to 2016).