BoD reviews 2019 results

  • PROPOSED ORDINARY AND EXTRAORDINARY DIVIDEND:
    • In light of the Company's growth trend over the last three years (2017-2019), when recently acquired Portfolio Companies reported a doubling in value alongside with significant proceeds from disposals of assets, the Board of Directors will propose to the next Shareholders' Meeting the distribution of an ordinary dividend of 0.60 euro per share (0.55 euro in 2018) and an extraordinary dividend of 1.2 euro per share.
  • RESULTS OF ITALMOBILIARE SPA:
    • At December 31, 2019, Italmobiliare's NAV was 1,741.1 million euro, an increase of 22.5% vs. the end of 2018 (1,421.4 million).
    • The portion of NAV related to Portfolio Companies has grown by over 55% to 745 million as the result of an increase in value of around 180 million, mainly due to the growth of Caffè Borbone and Tecnica Group, and investments during the period of over 80 million (Autogas and Capitelli).
    • Positive results from disposals, including the sale of the stake in Jaggaer for 91.2 million and of the stake in the fund Aksia IV for 21.6 million.
    • Amongst the other NAV components, the value of the Private Equity funds has increased by over 20% to 158 million (mainly due to the good performance of the portfolio), while the investments in listed companies (165 million) has almost halved in value following the sale of securities for around 223 million.
    • A third of NAV (€ 570 million) is represented by financial assets and cash that can be used for new projects that are currently being defined, including the acquisition of a stake in Officina Profumo Farmaceutica di Santa Maria Novella closed at the beginning of 2020.
    • In 2019 Italmobiliare recorded a profit of 19.7 million (19.8 million in 2018 which included positive tax effects of over 19 million). The profit before tax was 30.6 million (0.7 million at the end of 2018).

The Board of Directors of Italmobiliare SpA reviewing the 2019 results has made a positive assessment of the Company's growth trend during the last three years (2017-2019). During this period, around 300 million were invested in new portfolio companies and their value at the end of 2019 already comes to over twice the initial investment, considering the limited holding period (around 1.5 years on average). During 2019, the Italmobiliare shares price, included in September in the STAR segment (segment dedicated to listed companies complying with high standards of transparency and governance), increased by around 30%. This reflected in a subsequent reduction in the NAV discount, which at the end of the year was around 35%, reducing further in the first few weeks of 2020 as the share price continued to rise.

In light of the portfolio's positive performance, which allowed the overall NAV of Italmobiliare to grow by 22.5% to 1,741.1 million in 2019, and investment disposals that generated additional liquidity, the Board of Directors will propose to the Shareholders' Meeting the distribution of an ordinary dividend of 0.60 euro per share (0.55 euro in 2018) and an extraordinary dividend of 1.20 euro per share. The proposed dividend will be distributed using the entire profit of Euro 19,730,026 and retained earnings for an amount of Euro 56,211,848.

Italmobiliare SpA has closed its 2019 financial statements with a profit of 19.7 million euro (19.8 million in 2018 which benefited from positive tax effects of over 19 million). Compared with 2018, the profit before tax has increased from 0.7 million to 30.6 million.

Overall, portfolio companies reported a positive performance in 2019: pro-forma aggregate revenue came to 1,550 million, up 2%, despite a reduction in certain companies without an impact on profit margins, while EBITDA improved for all companies, reaching 192.8 million, an overall increase of around 30%.

During 2019 Italmobiliare invested in the energy sector, buying 30% of Autogas, and expanded its presence in the food sector - alongside the stake already held in Caffè Borbone - with the purchase of 80% of Capitelli, a premium brand in the Italian cured meats sector. In the second half of the year, the investment in Jaggaer was sold for over 90 million (the NAV equivalent at the end of 2018 was 56 million). At the beginning of 2020, Italmobiliare took a 20% share in Officina Profumo Farmaceutica di Santa Maria Novella with a view of supporting its development to further enhance this historic brand of high-end cosmetics on international markets.

"During this three-year cycle, Italmobiliare has made investments in a varied set of Italian companies, all of which express excellence in their own field - commented Carlo Pesenti, CEO of Italmobiliare -. Ten companies that together represent annual revenue of 1.6 billion and EBITDA of 200 million. In addition to financial resources, we have also invested considerable management resources in these companies, which have enabled us to support important development projects, achieving significant increases in their results, particularly for Caffè Borbone and Tecnica Group, which were the first investments to be made.

During these three years, we have established a more balanced portfolio mix in line with the characteristics of a modern investment holding company: at the end of 2019 about 2/3 of NAV consists of investments in Portfolio Companies and Private Equity funds (900 million) and in other investments (270 million). To this must be added the 570 million of liquidity (about one third of NAV) which can be allocated to the new projects that are currently being defined, including the acquisition of a stake in Officina Profumo Farmaceutica di Santa Maria Novella closed at the beginning of 2020.”

The Company's activity in acquisitions, investment management and development, promoted and supported by the corporate bodies and shared by a management that has been strengthened over the last few years, has allowed Italmobiliare to come close to its target of a portfolio invested more than 50% in Italian companies of excellence - added the Chairman Laura Zanetti -. We are constantly looking at new opportunities, focusing not just on the financial aspects, but also on investments that are consistent with ESG objectives in line with the policy that has always characterised the Company. For this reason, during the year, a dedicated team was formed to develop and manage sustainability issues and reinforce corporate governance at all subsidiaries, while at parent company level we further strengthened risk management by analysing and defining specific mitigation initiatives. Furthermore, Investor Relations were intensified through a continuous and in-depth discussion with the financial community. This activity, focused on the value of the investment portfolio, was reflected in an appreciation of the share price on the Stock Exchange and in a reduction in the discount to NAV."

Milan, March 4, 2020 – The Italmobiliare SpA Board of Directors today reviewed and approved the consolidated financial statements and the draft financial statements of the Company at December 31, 2019.

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