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2016 SHAREHOLDERS MEETING

BERETTA HOLDING APPROVES 2015 CONSOLIDATED RESULTS

- Strong increase of the EBITDA (+15%), of the operating income (+35%) and of the net income (+15%)

- The consolidated turnover has increased to 660.8 million (+6%) thanks to the further development of international markets, representing 95% of the consolidated turnover (North America 58%)

- Growing contribution coming from the optics and the clothing and accessories divisions

- Investments in manufacturing and in research & development amount to approx. 60 million (9% of the turnover)

 

Gardone Valtrompia (BS), 22 June, 2016 - The general meeting of shareholders of Beretta Holding S.p.A. has approved the Group consolidated financial statements for 2015.

The Group, headed by Pietro Gussalli Beretta, closes the 2015 financial year with consolidated net sales amounting to 660.8 million Euro, an increase of 37.2 million in comparison to 623.6 million Euro in 2014 (+6%).

The EBITDA is equal to 102.8 million of Euro (16% of the consolidated turnover) compared to 89.3 million in 2014 (+15%); the operating income is equal to 71.4 million Euro compared to 52.7 million in 2014 (+35%) and the net income amounted to 47.3 million Euro compared to 40 million in 2014 (+15%), after income taxes of 22.7 million Euro (20 million in 2014).

Main contributions to achieve these results include the discreet increase of sales in the civilian and sporting sector as well as the additional benefit of the appreciation of the US Dollar vs the Euro: these factors helped offset the decrease in orders from the military and law enforcement sector which dropped from 17% of the consolidated turnover in 2014 to 11% in 2015.

In ongoing growth are the sales realized in international markets that account for 95% of the total; the North American share increased to 58%.

The 2015 financial year is characterized by the confirmation of the strong demand from the civilian market in the United States and by the good growth recorded in Central-Northern Europe, whilst Italy confirms another year of regression (albeit showing signs of recovery in sales in the civilian and sporting sectors); in decline also the results of other areas, with reference to the heavy decrease of demand in Russia.

With regard to non firearms products, which currently represent a quarter of the total turnover, there is growth in both the optics division, which has exceeded 95 million Euro of turnover (+6%), and the clothing and accessories division, which records sales for 35 million Euro (+4%).

  

The current financial year also confirms the importance of the Group’s direct sales to the consumer, with the ability to count on sales through the prestigious Galleries and on the contribution from online sales as well as outlets, recently enriched by a new point of sale in Chicago.

Very important is the Group’s commitment to new investments that amount to 41 million Euro, equal to 6.2% of the turnover (36.1 million in 2014), bringing the total expenditure over the past three years to over 100 million Euro; in 2015 approximately two thirds have been designated to international sites, from which emerges Beretta USA’s new facility in Tennessee, inaugurated in April 2016.

Investments in research & development are equal to 18.3 million Euro (3% of the turnover), compared to 17.4 million in 2014.

The average workforce for the year features a slight decline, passing from 3,021 to 2,941.

The net financial position at year end was positive for 116 million Euro.

In regards to the current financial year, a turnover above 700 million Euro has been forecasted along with a higher profit margin.

In reference to the outlook of the civilian sector, trade shows and exhibitions at the beginning of the year have confirmed an increased interest of the customers for the wide range of proposals and new products presented and so far no significant changes in economic conditions in the sector in which the Group operates have been detected. In USA, notwithstanding some signs of slowdown in the economy, historically the electoral year has been favorable for the industry, even if the demand seems less directed at the hunting and sporting segment, where the product range that the Group offers is more comprehensive. On another note, the economic crisis in Russia is far away from recovery, while in Europe, although the recovery seems lower than hoped for and with high uncertainties tied to the refugee crisis and the United Kingdom referendum, the extensive distribution network should guarantee the Group another year of growth.

Regarding the military and law enforcement sector, the portfolio of orders and tenders in course should result in a recovery of the ground lost in 2015.

On the currency side, it must be observed that the US Dollar for the moment has maintained its average values from 2015.

Pietro Gussalli Beretta, President and CEO of Beretta Holding, stated: “In 2015 the Group achieved results of significant importance, continuing the trend of turnover growth on a global scale and maintaining excellent profitability for the manufacturing industry. We will continue our process of internationalization and of investments in production and in research & development to support the growth of all the companies within the Group and to design ever innovative and competitive products and solutions. We have a solid financial position which allows us to continue assessing possible acquisitions of companies that offer a geographic presence as well as products with high synergies with the Group worldwide”.