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FY 2020 RESULTS
2020 RESULTS IN LINE WITH COMPANY GUIDANCE, BACKLOG AND CASH IMPROVED
VEGA TO LAUNCH AGAIN IN APRIL
• Net Revenues: Euro 322 million (-12.6% on 2019)
• Adjusted EBITDA: Euro 43.3 million (in line with 2019)
• Reported EBITDA: Euro 35.2 million (-17.4% on 2019)
• Adjusted EBIT: Euro 24 million (-14.1% on 2019)
• Reported EBIT: Euro 15.9 million (-40.1% on 2019)
• Net Profit: Euro 14.9 million (-44.9% on 2019)
• Backlog: Euro 736 million (+10.1% on December 31, 2019)
• Net Cash Position: Euro 62.6 million (+8.1% on December 31, 2019)
Rome, March 19, 2021 – The Board of Directors of Avio S.p.A. today reviewed and approved the financial statements of Avio S.p.A. as of December 31, 2020.
Avio, a leading aerospace enterprise listed on the STAR segment of the Italian Stock Exchange reports net revenues for 2020 of Euro 322 million, decreasing 12.6% on the previous year and essentially in line with the 2020 Guidance of Euro 325-345 million. The reduction in revenues is mainly driven by the impacts of the COVID-19 pandemic on the ability to execute. The slowdown in production activities has been primarily caused by the postponements of the VV16 Vega flight from March to September 2020 due to the restriction of access to the launch base in French Guiana. The pandemic also caused a general slowdown in the development activities by the European supply chain. Subsequently, the VV17 Vega flight was executed in November 2020, resulting in a major flight anomaly which caused further delays to the business activities.
Reported EBITDA of Euro 35.2 million, in line with the 2020 Guidance provided in September 2020 of Euro 34-36 million and decreasing 17.4% on the previous year due to massive and unpredictable non-recurring costs (Euro 8.1 million in 2020 vs. 1.4 million in 2019) derived by the COVID-19 pandemic principally including increased launch mission costs, facilities sanitation and individual protection equipment. Adjusted EBITDA, excluding not-recurring costs, is substantially in line with prior year (Euro 43.3 million vs 44 Euro million in 2019).
Net profit of Euro 14.9 million (-44.9% on 2019), slightly below the 2020 Guidance (16-19 Euro million), primarily due to higher depreciation related to the start of exploitation of the new P120 (for Ariane 6 and Vega C) and Zefiro 40 (Vega C) assets.
The Net Order Backlog of Euro 736 million as of December 31, 2020 was well above Guidance indications (Euro 650-680 million) and increased from 2019, principally for the contractualization of several development contracts from the ESA Seville Ministerial
Council of November 2019, including the Space Rider program. Avio has also signed an initial agreement with Arianespace for the production of the next batch of 10 Vega C launchers for the period 2023-2026, thus extending the visibility on the associated production activities. This production batch will be destined for both commercial and European institutional customers, including the European Commission for the Copernicus constellation satellites.
Net Cash Position improving to Euro 62.6 million (+8,1% on Euro 57,9 million at December 31, 2019), thanks to the contribution of cash from the operating performance despite the increase in Capex (Euro 34.6 million including the development of the Space Propulsion Test Facility SPTF in Sardinia, compared to Euro 28.6 million in 2019), and the treasury shares buy-back program completed in October 2020 with a cash out in 2020 of Euro 6.4 million.
Concerning the Covid-19 pandemic, Avio confirms that all of its operations both in Italy and in French Guyana are open and proceeding with the necessary precautions to safeguard the health of all Avio’s employees and partners.
On the basis of the 2020 results, the Board of Director proposes to the Shareholders’ Meeting scheduled for April 29, 2021 to distribute a dividend of Euro 7.3 million (Euro 0.285 per share – 49.2% payout ratio). It is also proposed that the dividend is paid out from May 12, 2021, with coupon date of May 10, 2021 and record date of May 11, 2021, in accordance with Article 83-terdecies of the CFA.
The Board of Directors has also decided to increase the payout ratio threshold set out in the dividend policy from 50% to 60% in order to achieve greater flexibility in shareholders’ remuneration.
“2020 represented a very difficult year with the COVID-19 outbreak that has disrupted our lives and the economy as a whole. While we are seeing some signs of recovery, the short-term scenario remains uncertain - stated Avio's CEO, Giulio Ranzo. However, Avio managed to increase its long-term business prospects based on a robust product roadmap and thanks to the increase in backlog and in net cash. Our restored confidence allows us to resume dividends distribution and continue on with our commitment to create value for the shareholders in the long term.”
The presentation outlining the 2020 highlights will be made available in the Investor Relations section of the website to assist the call with financial analysts and investors scheduled for Friday, March 19 at 6.30 PM CET. The Annual Financial Report will be made available in Italian and in English in accordance with Law.
Together with the 2020 Annual Financial Report, the Board of Directors of Avio S.p.A. approved the 2020 Non-Financial Report, in line with the requirements for listed companies under Legislative Decree 254/2016.