BASICNET: BoD approves 2017 consolidated financial statements. Preliminary results of February 19 confirmed:

BasicNet marketplace core revenues: royalties and sourcing commissions up 3.2%.

Consolidated Net Profit of Euro 10.6 million (+3.3%).

Proposed dividend of Euro 0.06 per share, pay-out ratio of 30.8% (2016 dividend of Euro 0.06 per share).

Proposal to Shareholders’ AGM called for April 24, 2018 in single call to renew authorisation to purchase and utilise treasury shares. 

Turin, March 19, 2018. The Board of Directors of BasicNet S.p.A., in a meeting today chaired by Marco Boglione, approved the 2017 Consolidated Financial Statements and the 2017 Separate Financial Statements. The Shareholders’ AGM was called (in single call) for April 24, 2018.

Major investment rolled out in 2017: Brand portfolio extended with Briko^® and Sebago^®. Far-reaching communication and international brand development initiatives continue for the licensee network, generating aggregate Group Brand sales of Euro 747.8 million. 

Strong commercial outlook for 2018 based on general Brand performance, the inclusion of Sebago^® brand sales - now firmly integrated into the Group business model - and existing collaborations with leading luxury and lifestyle brands for Kappa^® and Superga^®. Orders for the latter point to an Italian market recovery.

Consolidated highlights:

• Consolidated revenues:

• royalties and sourcing commissions from aggregate sales of the commercial and productive licensees of Euro 47.9 million, up 3.2% on Euro 46.4 million in 2016 (+3.8% at like-for-like exchange rates);

• direct sales, almost entirely from the Italian licensee BasicItalia S.p.A. and its subsidiary, of Euro 135.6 million - substantially in line with Euro 135.2 million in the previous year;

• EBITDA of Euro 23 million, up 7.3% on Euro 21.5 million in 2016;

• EBIT of Euro 16.6 million (Euro 15.2 million in 2016), up 9.2% on the previous year;

• Earnings before taxes (EBT) of Euro 15 million (Euro 14.9 million in 2016);

• Consolidated net profit of Euro 10.6 million, +3.3% (Euro 10.3 million in 2016);

• Net debt of Euro 61.5 million, increasing on Euro 49.5 million at the end of 2016. Capex in the year of Euro 17.8 million, dividends of approx. Euro 3.3 million and treasury shares acquired of approx. Euro 2.6 million. Cash flow generated by operations total approx. Euro 11.7 million.

FINANCIAL STATEMENTS OF THE PARENT COMPANY BASICNET S.p.A.

The Board of Directors also approved the 2017 statutory financial statements of BasicNet S.p.A..

Royalties and sourcing commissions of Euro 28.2 million, up 2.9% on 2016.

EBIT of Euro 8.6 million (Euro 8.9 million in 2016).

Net profit of Euro 4.5 million (Euro 7.4 million in 2016) following impairment on investments of Euro 3 million. 

Shareholders Equity at December 31, 2017 of Euro 85.4 million (Euro 86.8 million at December 31, 2016).

Net cash position of Euro 31.8 million reduced on Euro 43 million in 2016.

DIVIDEND PROPOSED

The Board of Directors proposes to the Shareholders’ AGM to distribute a dividend of Euro 0.06 per share in circulation, for a total of Euro 3.3 million.

The proposed dividend reflects a pay-out ratio of 30.8% (32.3% in 2016) on the consolidated net profit of Euro 10.6 million and a dividend yield at December 29, 2017 of 1.63%.

The dividend will be paid from May 23, 2018, with record date of May 22, 2018 and coupon date (No. 11) of May 21, 2018.

SHAREHOLDERS’ AGM CALL

The Board of Directors called the Shareholders’ AGM for April 24, 2018 in single call to consider the following:

• approval of the 2017 Statutory Financial Statements and proposal for the allocation of the net profit;

• review of the remuneration policies in accordance with Article 123-ter, paragraph 6 of Legislative Decree 58/98 (Consolidated Finance Act);

• proposal to purchase and utilise treasury shares.

TREASURY SHARES

The proposal to purchase and utilise treasury shares is submitted so as to:

• provide the company with an instrument to support projects matching the strategic guidelines, under which share swap opportunities are presented or as a guarantee for funding operations;

• permit the company to invest in treasury shares. 

Shares shall be purchased and utilised in compliance with Article 2357 and subsequent of the Civil Code and Article 132 of Legislative Decree 58/98: in such an amount so that at any given time these shares do not exceed overall 20% of the share capital, while also within the limits of the retained earnings and available reserves of the last approved financial statements, with the consequent setting up, in accordance with Article 2357-ter, paragraph 3 of the Civil Code, of an undistributable reserve of an amount of the treasury shares from time to time acquired. The authorisation is requested for the period until the Shareholders’ AGM called to approve the 2018 Annual Accounts and for a maximum financial commitment of Euro 3.5 million. Any purchases shall be made on the regulated markets, in compliance with Article 132 of Legislative Decree 58/98 and Article 144-bis, first paragraph, letter b) of the Issuers’ Regulation approved with CONSOB Motion No. 11971/1999, in addition to market practices recognised by CONSOB, as per Article 180, paragraph 1, letter c) of Legs. Decree 58/98, subject to Regulation (EC) No. 596/2014 of April 16, 2014 and relative enacting provisions, where applicable.

Under the treasury share buy-back programme, authorised by the Shareholders’ AGM of April 27, 2017, and valid until the Shareholders’ AGM called to approve the 2017 Annual Accounts, therefore concluding on April 24, 2018, BasicNet acquired 717,782 shares - equal to 1.77% of the Share Capital. BasicNet today holds a total of 6,280,079 treasury shares (10.296% of the Share Capital), for a total investment of Euro 15 million.

The Annual Report, including the Consolidated Non-Financial Report, the Annual Corporate Governance and Ownership Structure Report and the Remuneration Report, approved today, shall be made available at the registered office, through the 1info authorised storage mechanism (www.1info.it) and on the company website (www.basicnet.com) in accordance with law.

In relation to the “alternative performance indicators”, as defined by the ESMA/2015/1415 guidelines, we provide below a definition of the indicators used in the present Interim Directors’ Report, as well as their reconciliation with the condensed half-year financial statement items:

The Executive Officer for Financial Reporting, Mr. Paolo Cafasso, declares in accordance with Article 154-bis, paragraph 2, of the Consolidated Finance Act that the accounting information contained in the present press release corresponds to the underlying accounting documents, records and accounting entries.

The financial statements are attached