Avio 2019 Results

Net Income and Cash Growth Continues

• Net Revenues: Euro 368.7 million (-5% on 2018)
• Reported EBITDA: Euro 42.6 million (unchanged on 2018)
• Reported EBIT: Euro 26.5 million (-7% on 2018)
• Net Profit: Euro 27 million (+5% on 2018)
• Backlog: Euro 669 million (-24% on December 31, 2018)
• Net Financial Position: cash position of Euro 57.9 million (+18% on December 31, 2018)
• Extraordinary measures in relation to the COVID-19 emergency:
  • Prefectural authorisation granted to continue industrial operations as per Presidential Decree of March 22, 2020
  • Proposal for full allocation of 2019 net profit to retained earnings
  • Guidance 2020 to be assessed upon the approval of the 2020 half-year report (September)

ROME--(BUSINESS WIRE)--The Board of Directors of Avio, a leading rocket engine manufacturing enterprise listed on the STAR segment of the Italian Stock Exchange, today reviewed and approved the financial statements of Avio at December 31, 2019. Avio is the Prime Contractor of the European light satellite launcher Vega and supplier of the heavy launcher Ariane.

“2019 has further consolidated the profit and cash growth seen over recent years despite the difficulties resulting from the failure of a Vega flight last July,” stated Avio's CEO, Giulio Ranzo. “In parallel, Avio has continued to invest heavily in technology and new programmes while maintaining a strong financial position, allowing to confidently look forward to the next 4-5 years in which Avio will work on new projects for Vega C, Vega E and Space Rider, which were recently fully funded at the ESA Ministerial Council in Seville.”

“The COVID-19 outbreak represents a global emergency whose length and effects on the global economy are not fully foreseeable as of now. For this reason, we have decided, together with the Board of Directors, to precautionarily allocate to reserves all of the 2019 profits and not to pay long-term performance incentives to Management, in order to protect the financial structure of the Company. The specific situation and the perspectives, also related future dividend distributions, will be re-assessed at the half-year accounts’ closing, once the global impacts of the emergency will be clearer. In the meantime we are focused on working on the long-term sustainability of the Company, by protecting its financial structure to keep investing and getting ready to the future with new technologies and products.”