The Board of Directors of Biesse S.p.A. – a company listed in the STAR segment of Borsa Italiana, the Italian Stock Exchange, and part of the FTSE IT MID CAP – has approved its 2019-2021 Three-year Business Plan.
Based on this Plan and on the international macroeconomic environment, the principal forecasts for the Biesse Group in the period under consideration are as follows:
- Three-year cagr in Net Revenues of six per cent
- Three-year cagr in Value Added of 6.3 per cent
- Increase in operating profitability:
- three-year cagr in EBITDA* of 7.4 per cent
- three-year cagr in EBIT of 7.7 per cent
- positive* free cash flow in excess of Euro 69 million (SGD 106 million) in the three-year period 2019-2021 net of planned investments (total capex of Euro 148 million, or SGD 227 million)
- 2019-2021 average EPS of Euro 1.74
* excluding the effect of IFRS 16
2018 consolidated revenues rose 7.3 per cent compared to the previous financial year with Gross Operating Profit (EBITDA) exceeding Euro 92 million (SGD 141 million). At 31 December 2018, there was a Positive Net Financial Position of more than Euro 25 million (SGD 38 million).
Despite the international political and economic uncertainties, the Board of Directors is intent on maintaining its strict focus on investments in innovation, service and after sales care without ignoring marketing/distribution efforts.
The Three-year Business Plan is predicated on three main strategies:
- increase in the offer (#products)
- new solutions for clients (#solutions)
- increased digitalisation (#connected company)
The Board of Directors has also acknowledged that, as a result of the agreement with the Agenzia delle Entrate italiana (Italian Tax Office) for access to the tax advantages of the Patent Box, Biesse S.p.A. obtained further tax benefits for the 2015-2019 period. These benefits, added to those obtained by HSD S.p.A. alone (December 2017), gave the Biesse Group a total tax savings of almost Euro 7 million (SGD 10.8 million) in the 2018 financial year, reducing the Group tax rate to 25.3 per cent. The agreement signed should provide benefits of approximately Euro 3 million (SGD 4.6 million) in the 2019 financial year.