Annual Report 2016

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SUMMARY Annual Report 2016

07 • Cefla, 85 years of outstanding value, looking ahead to new businesses

08 • Economic financial indexes

12 • Cefla Plant Solutions

14 • Cefla Shopfitting

16 • Cefla Finishing

18 • Cefla Medical Equipment

20 • C-LED

22 • Cefla in the World

24 • Organisation chart of Group Companies

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We started our 85th year with the best results ever in terms of both volumes and margins. Despite ever-more competitive markets and a decidedly complex international geopolitical scenario that urges us to be ever-more dynamic and responsive to change, our businesses have grown.The attained result - which makes for another record year and confirms an evident positive trend - demonstrates that everyone at Cefla, starting with the shareholders, is constantly committed to creating lasting value by investing, innovating and implementing a strategic vision. Cefla’s financial soundness is a huge asset. It ensures customers perceive us as reliable and that the banking system grants us the confidence needed to implement the development projects we see as strategic.Our long corporate history and our mission drive us to look beyond our core businesses and seek out new

opportunities to penetrate new market segments. To this end, the work carried out by the new “Corporate Innovation & Business Development” team - dedicated to developing new technologies and products, merging skills, sharing and integrating processes across the different Business Units - is crucial. Following this logic, 2016 saw two major developments: the establishment of C-LED, a company specialising in LED lighting technology and sensors for plant/communications management, and the takeover of Jet-Set, a leading provider of industrial digital printers, thus rounding off our Finishing range perfectly.

Gianmaria Balducci President

CEFLA, 85 YEARS OF OUTSTANDING VALUE, LOOKING AHEAD TO NEW BUSINESSES

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ECONOMIC FINANCIAL INDEXES

PROFIT AND LOSS

361.368 M €361,368 M €

418.950 M €418,950 M €

Value of Production

2013

2014

20152015

2016 468.388 M €468,388 M €

Revenues % growth

5.3%

15.9%

5.8%

5.6%

443.406 M €443,406 M €

EBITDA

2013 27.021 M €

2014 37.415 M €

2015

2016

54.346 M €

46.819 M €

% EBITDA

7.5%

8.9%

12.3%

10.0%

27,021 M €

37,415 M €

54,346 M €

46,819 M €

EBIT

2013 11.927 M €

2014 19.240 M €

2015

2016

27.177 M €

26.833 M €

% EBIT

3.3%

4.6%

6.1%

5.7%

11,927 M €

19,239 M €

27,177 M €

26,833 M €

Net Result

2013 4.650 M €

2014 9.699 M €

2015

2016

16.023 M €

17.483 M €

Net Result % growth

7.6%

108.6%

65.2%

9.1%

4,650 M €

9,699 M €

16,023 M €

17,483 M €

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CONSOLIDATED BALANCE SHEET

Net Fixed Assets

2013 176.584 M €

2014 176.190 M €

2015

2016

183.393 M €

187.923 M €

176,584 M €

176,190 M €

183,393 M €

187,923 M €

Net Working Capital

2013 38.346 M €

2014 28.077 M €

2015

2016

40.860 M €

38.975 M €

NWC / Revenues incidence

10.6%

6.7%

9.2%

8.3%

38,346 M €

28,077 M €

40,860 M €

38,975 M €

Net Equity

2013 211.326 M €

2014 214.355 M €

2015

2016

228.016 M €

240.786 M €

211,326 M €

214,355 M €

228,016 M €

240,786 M €

Net Financial Position

2013

2014

2015

2016

−3.605 M €

3.765 M €

13.888 M €

10.088 M €

13,888 M €

10,088 M €

−3,605 M €

3,765 M €

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Cefla is a manufacturer of civil, industrial and energy

generating plants. A wealth of experience and continuous

application of technological, design and IT innovation have

allowed the company to implement complex, prestigious

projects characterised by practical solutions that improve

quality of life and safeguard the environment.

To meet customers’ requirements, Cefla’s infrastructure

and organisation are geared to putting forward engineering

solutions that fulfil contract briefs to perfection; this is

achieved by simultaneously offering a complete service that

spans from feasibility studies to basic design, from planning

to construction, from running the plant to after-sales service.

Cefla Plant Solutions, one of Italy’s leading civil engineering

construction players, aims to strengthen its position in the

plant engineering business, now expanded and diversified

with higher-added-value services and ever-greater technical

content.

In 2016 Cefla Plant Solutions continued to invest in the service

area, mainly in the civil and energy sectors where growth

is significant. The goal is to maintain its position in the civil

construction sector and expand its national reach in terms

of service, further increasing its Energy expertise to become

a global provider of plant engineering services to highly

qualified, demanding customers.

While the Plant Solutions BU is mainly involved on the Italian

market - where public and private investment continues to

CEFLA PLANT SOLUTIONS, GROWING WITH PRESTIGIOUS GLOBAL CUSTOMERS AND INVESTING IN SERVICE

Milan, Porta Nuova Management Centre

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be sluggish and bureaucracy can sometimes slow project

start-ups - Cefla also does direct business with major global

customers, providing them with an ever-expanding array

of services in line with trends and their own strategies for

rationalising suppliers in terms of number and qualifications.

In this context, Cefla has been successful in winning - to name

just a few big projects - contracts for Roma Nord Electricity

Grid Maintenance with Acea Roma, the new Tor di Valle

district heating station (in temporary association with G.E.)

and the new LFoundry Cogeneration Station in Avezzano.

Work is also continuing on the large-scale Fico/Eataly project

in Bologna.

Cefla’s tends to operate in an ever-more integrated manner

in the civil construction, energy and civil engineering/energy

service fields, all in constant synergy with the Engineering

Sales IT area and the Euroges subsidiary as part of a general

drive towards global plant computerization and remote

monitoring/regulation.

In 2017 and beyond the BU has planned, for the Service

Sector, significant investments in personnel, training and IT so

that current Customer Service levels can be maintained and

constantly upgraded while meeting the anticipated increase

in volumes.

Beyond its focus on the domestic market, the Business Unit

sees strategic opportunities for growth in foreign energy

sectors, especially in the development of synergies with major

partners who are already strongly internationalised.

Advanced Civil and Energy solutions are (thanks also to

the addition of the subsidiary Euroges, which specialises in

building automation systems) the fruit of years of experience

and the specific expertise and skills of the people who manage

all operations on a daily basis.

Conserve Italia, Cogeneration Plant

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In 2016 Cefla Shopfitting continued the strategic repositioning

begun in 2014. Definition of the new organisational model

has now been completed. It will be put into action in 2017, a

year in which signs of growth are expected, before becoming

fully operative in 2018.

In addition to a constant focus on innovation, this model

aims to be highly proactive in retail design by integrating

communication technology, proximity marketing and lighting

into new product development.

Moreover, the sales network for products dedicated to non-

food commodities has been strengthened by raising the level

of professional expertise.

With regard to innovation, note the integration of Growing

technology (‘zero-distance’ small-leaf vegetable cultivation)

into display solutions. This technology has been developed

thanks of C-LED’s close collaboration with Bologna University’s

Faculty of Agriculture and was presented at the most recent

editions of Euroshop (Düsseldorf) and Macfrut (Rimini). Positive

signs are emerging from both Italian and foreign markets, and

encouraging results are expected in the short term.

CEFLA SHOPFITTING, RETAIL DESIGN AND TECHNOLOGY TO RENEW THE INTERNATIONAL RANGE

Milan, Supermarket of the Future, Coop Bicocca

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More specifically, on the Russian market we’ve started

expanding the product range and setting up the sales

network. Both processes will continue into 2017.

Russian subsidiary Zenith R.S. has implemented and

completed a major reorganisation plan, at both operative

level and with regard to its IT system.

Moreover, during 2016 the Business Unit’s R&D department

(at the central headquarters in Imola) completed development

of the System50 shelving line, to be manufactured in Russia

from February 2017 onwards.

Deserving of a special mention is Cefla Shopfitting’s latest

branch in Dubai, which continues its run of good performance

and enjoys a particularly broad customer portfolio.

Summing up, 2016 was a sound year for Cefla Shopfitting

that saw the Business Unit continue to expand and pursue

its vision of becoming an-ever-more innovative, essential

partner to international retailers.

Retail Design

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CEFLA FINISHING, EXTENDING LEADERSHIP BY INNOVATING AND DIVERSIFYING IN EVERY INDUSTRY

Cefla Finishing, now the world’s leading developer of wood

coating systems, aims to extend its leadership to the entire

finishing sector for wood components and similar materials,

as well as to diversify products and services in the glass,

plastic, metal, aluminium and composite material sectors. To

achieve this ambitious result, the Business Unit is engaged in a

constant quest for innovative yet reliable solutions.

In 2016, we completed our overhaul of the Omnidry vertical

oven range. The first prototype has since been installed by

a major Italian customer to their complete satisfaction. This

‘test run’ meant the product was able to make its international

debut at Ligna 2017, the industry’s most important fair, where

it aroused considerable interest.

The year 2016 also saw the iGiottoApp X2 anthropomorphous

robot duo make its debut. This took place at the Xylexpo

fair in Milan, where the solution won the Xylexpo Innovation

Award on account of its “smooth integration of mechanics

and IT systems, allowing management of a continuous flow

of randomly arranged material while offering a high degree

of operative freedom and a capacity for interaction between

Machines and complete plants for the coating of plastic components

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the two robots in a common area, with consequently high

productivity”.

Cefla Finishing also acquired a majority share in Jet-Set S.r.l.

This dynamic Bergamo-based company, established in 2012,

specialises in the design and production of industrial digital

printers (multipass and single pass).

This takeover was crucial as it enhances Cefla’s know-how

in the digital decoration sector. The latter is characterised by

outstanding development potential, not just in Cefla Finishing’s

traditional markets but also in other industries (e.g. plastic,

cement fibre and metal) where the company has been

investing for some time.

Reorganisation of Cefla Finishing’s R&D department was

completed, fully in line with expectations. This led to the

completion of a number of outstanding projects across all

business lines, from vertical ovens and roller machines to

window, glass and cement fibre lines.

At industrial level, 2016 saw the launch of a new project to

optimise the productive efficiency of special orders according

to Engineer-to-Order logic.

New Omnidry vertical oven

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Solidity, product know-how and customer care, combined

with an effective multi-brand approach, have propelled Cefl a

Medical Equipment to a position of market leadership.

Cefl a Medical Equipment, with its Anthos, Castellini, Stern

Weber, MyRay, Mocom, NewTom and Victor brands,

develops and manufactures a wide range of products that

respond to the needs of doctors and dentists all over the

world by providing the highest quality standards.

Through heavy investment in research and development, and

a far-reaching network of highly experienced distributors,

Cefl a Medical Equipment is a global partner able to provide

unmatched solutions in the Dentistry and Radiology

segments: dental units, dynamic instruments, intra-oral

digital radiology, 2D and 3D extra-oral digital radiology,

diagnostic image management software and sterilization

systems.

CEFLA MEDICAL EQUIPMENT, LEADERSHIP FOUNDED ON KNOW-HOW AND EXCELLENCE

NewTom GO 3D

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For the Medical market, 2016 saw the launch of the CBCT

3D NewTom 5GXL system (in which the patient is positioned

lying down) for orthopaedic and head/neck applications.

The dental sector, instead, saw the introduction of two

Panoramic 2D/3D systems, MyRay Hyperion X5 and

NewTom Go, thus strengthening the digital Imaging range.

With regard to Dental Units and Sterilization, the restyling of

the Classe R7 models and the “top drying” version of the

new Tethys H10 Plus thermal disinfector have extended the

respective product lines.

Over the course of the year, Cefla Medical Equipment

focused resources and investment on the development

of projects aimed at innovating production processes and

enhancing product ranges.

MyRay Hyperion X5 3D/2D

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April 2016 saw the founding of C-LED, a new Cefla company

active in the LED lighting and wireless connectivity businesses.

C-LED operates in fields as diverse as outdoor lighting,

retail, interior design and industry. It develops innovative

LED solutions for greenhouse and indoor growing and also

designs electronic applications for wireless connectivity and

indoor geo-location purposes (BLE beacons).

C-LED is a spin-off of Elca Technologies, another Cefla

company specialising in electronic systems for industrial

automation, medical devices and lighting. Its first year

ended on an extremely positive note, from both a financial

standpoint and, more importantly, from a long-term strategic

viewpoint.

Through this company- which has its own headquarters

and production lines - Cefla has gained a foothold in new

businesses: this is thanks to an investment plan that ensured

C-LED, AN ‘ILLUMINATING’ FIRST YEAR OF LIGHT AND RESEARCH AIMED AT GENERATING NEW BUSINESS FOR CEFLA

C-LED inter-lighting lamp, the right light for plants

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the new firm became operational immediately. In addition

to LED lighting, C-LED is, through its R&D team, in close

contact with the Innovation and Business Development office

and Business Unit management teams and is developing

products in innovative fields such as: Growing (systems for

the greenhouse or indoor cultivation of plants using LED light

to stimulate their growth and productivity); lights for use in the

medical field; outdoor and indoor lighting systems that can

‘digitally dialogue’ with buildings (in the building automation

field); lighting components for display units in shops or

large retail facilities; development of BLE beacons, essential

elements in the proximity marketing technology that allows

geo-location of people in a defined area and interaction with

them (e.g. through personalised messages).

BLE Beacons

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FROM one territoryFrom Imola to the entire planet.

Charlotte

MadridBilbao

USA

Spain

MeckenheimSchloß Holte - Stukenbrock

Germany

Bischwiller Melun

France

CEFLA IN THE WORLD

SOCIETÀ PRODUTTIVEMANUFACTURING SITES

SOCIETÀ COMMERCIALISALES OFFICES

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TO a global identity

ImolaCefl a Headquarter

BergamoCastel MaggioreMilano PesaroRomaValvasoneVerona

Italy

Moscow

Warszawa

Dubai

Russia

Poland

United Arab Emirates

Suzhou

China

a global identity

Suzhou

China

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ORGANISATION CHART OF GROUP COMPANIES

Cefla s.c.

Mocom S.r.l.100% Cefla s.c.

CCSFR Sarl99% Cefla s.c.

1% Sorbini S.r.l.

Cefla Gest S.r.l.95% Cefla s.c.

5% Cefla Capital Services S.p.A.

C.I.T.I.82.16% Cefla s.c.

Techno Gest S.r.l.50% Cefla s.c.

Elettrica Roma Nord soc. cons. a r.l.51% Cefla s.c.

Sorbini S.r.l.100% Cefla s.c.

Zenith Shop Design S.r.l.100% Cefla s.c.

Estate S.r.l.100% Cefla s.c.

Primavera S.r.l.51% Estate S.r.l.

Estate US, Inc.100% Estate S.r.l.

C-LED S.r.l.90% Cefla s.c.

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Bryo S.p.A.25% Cefla Capital Services S.p.A.

Cefla Polska Sp. Zo.o.100% Cefla Capital Services S.p.A.

Suzhou Victor Medical Equipment Co., Ltd.

100% Cefla Capital Services S.p.A.

Cefla Deutschland GmbH99% Cefla Capital Services S.p.A.

Cefla Finishing India, Pte Ltd.99.999% Cefla Capital Services S.p.A.

0.001% Cefla s.c.

Düspohl Maschinenbau GmbH70% Cefla Capital Services S.p.A.

Jet-Set S.r.l.62.26% Cefla Capital Services S.p.A.

Cefla Capital Services S.p.A.100% Cefla s.c.

Cefla Finishing Equipment(Suzhou) Co., Ltd.

100% Cefla Capital Services S.p.A.

CCS LUX S.A.100% Cefla Capital Services S.p.A.

Evaliber Holdings Ltd.100% CCS LUX S.A.

ZAO PO Vitrina98% Evaliber Holdings Ltd.

2% Zenith Retail Solutions LLC.

Cefla Middle East (FZE)100% Cefla Capital Services S.p.A.

Cefla North America, Inc.100% Cefla Capital Services S.p.A.

Cefla Capital Services do Brasil Ltda.100% Cefla Capital Services S.p.A.

Cefla Iberica S.A.U.100% Cefla Capital Services S.p.A.

Zenith Retail Solutions LLC.99% Cefla Capital Services S.p.A.

1% Zenith Shop Design S.r.l.

Euroges S.r.l.70% Cefla Capital Services S.p.A.

www.cefla.com