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INTERIM FINANCIAL REPORT AS AT JUNE 30, 2013
Board of Directors on 28th August, 2013
PRIMA INDUSTRIE 1
PRIMA INDUSTRIE SpA
Company Capital € 21.638.060,00 (fully paid up)
Turin Companies' Register No. 03736080015 R.E.A. (Financial and Administrative Index) No. 582421
Registered office in Collegno (Turin) - Via Antonelli, 32
Website: www.primaindustrie.com - e-mail: [email protected]
MANAGEMENT AND CONTROL
Board of Directors
Chairman and C.E.O. Gianfranco Carbonato
Ezio G. Basso (1)
Domenico Peiretti
Sandro D’Isidoro
Enrico Marchetti
Mario Mauri
Other Directors Rafic Y. Mansour
Michael R. Mansour
Yunfeng Gao
Secretary of the Board of Directors Massimo Ratti
Internal Control Committee
Chairman Enrico Marchetti
Sandro D'Isidoro
Mario Mauri
Remuneration Committee
Chairman Mario Mauri
Sandro D’Isidoro
Rafic Y. Mansour
Board of Statutory Auditors
Chairman Franco Nada
Regular Auditors Paola Borracchini
Roberto Petrignani
Alternate Auditors Roberto Coda
Gaetana Laselva
Audit Company Reconta Ernst & Young SpA
Expiry of Mandates and Appointments
(1) Ezio G.Basso is also the General Manager of PRIMA INDUSTRIE SpA
Managing Directors
Independent Directors
Members
Members
The Board of Directors shall remain in office until
the approval of 2013 Financial Statements.
The Board of Statutory
Auditors shall remain in
office until the approval of
2015 Financial Statements.
The Audit company was appointed by the
Sotckholders's Meeting held on April 29th, 2008
for the period 2008 -2016.
PRIMA INDUSTRIE 2
INDEX CHAPTER 1. STRUCTURE AND PROFILE OF THE PRIMA INDUSTRIE GROUP AT 30/06/2013 ______ 4
STRUCTURE OF THE PRIMA INDUSTRIE GROUP ____________________________________________ 4
PROFILE OF THE PRIMA INDUSTRIE GROUP _______________________________________________ 5
AREA OF CONSOLIDATION _____________________________________________________________ 6
CHAPTER 2. INTRODUCTION ____________________________________________________ 10
FOREWORD _______________________________________________________________________ 10
ALTERNATIVE PERFORMANCE INDICATORS ______________________________________________ 10
EXCHANGE RATES __________________________________________________________________ 11
CHAPTER 3. GROUP INTERIM MANAGEMENT REPORT __________________________________ 13
HIGHLIGHTS OF THE PERIOD _________________________________________________________ 13
MACROECONOMIC CONTEXT __________________________________________________________ 13
REVENUES AND PROFITABILITY _______________________________________________________ 15
BALANCE SHEET____________________________________________________________________ 18
NET FINANCIAL POSITION ____________________________________________________________ 19
EXHIBITIONS AND ORDER BACKLOG ____________________________________________________ 20
RESEARCH AND DEVELOPMENT _______________________________________________________ 21
PERSONNEL _______________________________________________________________________ 22
OPERATION WITH RELATED PARTIES ___________________________________________________ 22
STOCK TREND AND TREASURY STOCK __________________________________________________ 23
SHAREHOLDINGS SCTRUCTURE _______________________________________________________ 23
STOCK OPTION PLANES ______________________________________________________________ 24
BUSINESS OUTLOOK ________________________________________________________________ 25
EVENTS WHICH TOOK PLACE AFTER THE END OF THE QUARTER ____________________________ 25
ATYPICAL AND UNUSUAL OPERATIONS _________________________________________________ 25
CHAPTER 4. ECONOMIC PERFORMANCE BY SEGMENT _________________________________ 27
PRIMA POWER _____________________________________________________________________ 27
PRIMA ELECTRO ____________________________________________________________________ 27
CHAPTER 5. INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF PRIMA INDUSTRIE
GROUP AT 30/06/2013 ________________________________________________________ 30
CONSOLIDATED FINANCIAL BALANCE SHEET _____________________________________________ 30
CONSOLIDATED INCOME STATEMENT ___________________________________________________ 31
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME _________________________________ 32
STATEMENT OF CHANGES IN CONSOLIDATED EQUITY _____________________________________ 33
CONSOLIDATED CASH FLOW STATEMENT _______________________________________________ 34
CONSOLIDATED BALANCE SHEET PURSUANT TO CONSOB N. 15519 OF 27/07/2006 _____________ 35
CONSOLIDATED INCOME STATEMENT PURSUANT TO CONSOB N. 15519 OF 27/07/2006 _________ 36
CONSOLIDATED CASH FLOW STATEMENT PURSUANT TO CONSOB N. 15519 DEL 27/07/2006 _____ 37
CHAPTER 6. EXPLANATORY NOTES _______________________________________________ 39
FORM E CONTENT __________________________________________________________________ 39
ACCOUNTING PRINCIPLES ____________________________________________________________ 39
FINANCIAL STATEMENTS _____________________________________________________________ 43
EXPLANATORY NOTES _______________________________________________________________ 44
ATTESTATION OF THE HALF- YEAR CONDENSED FINANCIAL STATEMENTS _____________________ 60
PRIMA INDUSTRIE 3
CHAPTER 1.
STRUCTURE AND PROFILE OF THE PRIMA INDUSTRIE GROUP ON
30/06/2013
CHAPTER 1. STRUCTURE AND
STRUCTURE OF THE PRIMA IN
The statement in these pages rep
on 30/06/2013. The companies
100%.
1) FINN POWER OY HOLDS 78% of PRIM
2) FINN POWER OY HOLDS 94 % of PRIM
D PROFILE OF THE PRIMA INDUSTRIE GROU
INDUSTRIE GROUP
represents the organizational structure of the P
es included in the PRIMA INDUSTRIE Group are a
IMA POWER IBERICA SL (the remaining 22% is held by PRIMA IN
IMA POWER BENELUX NV (the remaining 6% is held by BALAXM
PRIMA INDUSTRIE 4
P AT 30/06/2013
PRIMA INDUSTRIE Group
all substantially owned
INDUSTRIE SpA).
MAN OY).
PRIMA INDUSTRIE 5
PROFILE OF THE PRIMA INDUSTRIE GROUP
The PRIMA INDUSTRIE Group is leader in the development, production and marketing of laser
systems for industrial applications and machines for processing plate, as well as in the
industrial electronic and laser source sector.
The group leader PRIMA INDUSTRIE SpA , founded in 1977 and quoted on the Italian Stock
Market since October 1999 (currently MTA - STAR segment), designs, manufactures and
markets high power laser systems for cutting, welding and the surface treatment of three
dimensional (3D) and flat (2D) components.
The PRIMA INDUSTRIE Group has more than 35 years of experience and has installed over
10,000 machines in more than 70 countries. Also following the purchase of the FINN-POWER
Group in February 2008, it has established itself amongst the leaders world-wide in the sector
for processing plate. In more recent years, the Group has reorganized itself by subdividing the
business into the two following divisions:
� PRIMA POWER for the laser machines and for processing plate;
� PRIMA ELECTRO for industrial electronics and laser technology.
The PRIMA POWER division includes designing, manufacturing and marketing of:
� cutting, welding and drilling machines for three dimensional (3D) and two dimensional
(2D) metal components;
� the machines for processing plate through the use of mechanical tools (punching
machines, integrated systems for punching and shearing, integrated systems for
punching and laser cutting, paneling machines and automation systems).
This division owns production plants in Italy (PRIMA INDUSTRIE SpA and FINN-POWER ITALIA
Srl), in Finland (FINN-POWER OY), in the USA (PRIMA POWER LASERDYNE Llc) and a direct
commercial and technical support presence in France, Switzerland, Spain, Germany, United
Kingdom, Belgium, Poland, Czech Republic, Lithuania, Hungary, Russia, Turkey, USA, Canada,
Brazil, China, India, Korea and the UAE.
The PRIMA ELECTRO division covers the development, manufacturing and marketing of
electronic power and control components as well as high power laser sources for industrial
applications, destined for the Group's machines and third party clients. The division has
productive plants in Italy (PRIMA ELECTRO SpA) and in the USA (PRIMA ELECTRO NORTH
AMERICA Llc) as well as commercial establishments in the United Kingdom and China.
For over 30 years since its founding, the PRIMA INDUSTRIE Group mission continues to be that
of systematically expanding the range of its products and services and to continue to grow as
world-wide supplier of laser systems and systems for processing plate for industrial
applications, as well as industrial electronics, markets characterized by high technology and
in which good rates of growth are encountered even in a cyclical context.
.
PRIMA INDUSTRIE 6
AREA OF CONSOLIDATION
The only variation occurred in the first half 2013 in the consolidation area was the entrance
of the newly-established Australian subsidiary PRIMA POWER Australasia Pty Ltd (owned 100%
from PRIMA INDUSTRIE SpA). At 30/06/2013 has been object of consolidation the companies
reported in the tables below.
PRIMA INDUSTRIE 7
(1) Please note that at the date of reference of these financial statements, the share capital of PRIMA POWER MAKINA TICARET LIMITED SIRTEKI has not yet been fully paid up.
SUBSIDIARIES
PRIMA POWER REGISTERED OFFICE SHARE CAPITAL OWNERSHIP CONSOLIDATION METHOD
PRIMA POWER GmbH Lise-Meitner Strasse 5, Dietzenbach, GERMANY € 500'000 100% Line-by-line method
PRIMA POWER UK LTDUnit 1, Phoenix Park, Bayton Road,
Coventry CV7 9QN, UNITED KINGDOMGBP 1 100% Line-by-line method
PRIMA POWER CENTRAL EUROPE Sp.z.o.o. ul. Fabryczna 24 - 05 - 092 Łomianki Warsaw, POLSKA PLN 350.000 100% Line-by-line method
OOO PRIMA POWER Ordzhonikidze str., 11/A - 115419, Moscow - RUSSIAN FEDERATION RUB 4.800.000 99,99% Line-by-line method
PRIMA POWER SOUTH AMERICA Ltda Av Fuad Lutfalla, 1,182 – Freguesia do Ó - 02968-00, Sao Paulo BRASIL R$ 862'763 99,97% Line-by-line method
PRIMA POWER MAKINA TICARET LIMITED SIRKETI (1) Camlik Mahallesi Ikbal Caddesi Dinc Sokak No:31 Niyazibey Plaza,Instanbul - TURKEY TRY 1.470.000 99,86% Line-by-line method
PRIMA POWER CHINA Company Ltd. Rm.1 M, no. 1 Zuo Jiazhuang. Guomen Building,
Chaoyang District, Beijing, P.R. CHINARMB 2.038.778 100% Line-by-line method
FINN POWER Oy Metallite 4, FI - 62200 Kauhava, FINLAND € 49'417'108 100% Line-by-line method
FINN-POWER Italia S.r.l. Viale Artigianato 9, 37044, Cologna Veneta (VR), ITALY € 1'500'000 100% Line-by-line method
PRIMA POWER IBERICA S.L. C/Primero de Mayo 13-15, 08908 L’Hospitalet de Llobregat, Barcelona, SPAIN € 6'440'000 100% Line-by-line method
PRIMA POWER FRANCE Sarl Espace Green Parc , Route de Villepècle, 91280 St. Pierre du Perray, FRANCE € 120'000 100% Line-by-line method
PRIMA POWER BENELUX NV Leenstraat 5, B-9810 Nazareth, BELGIUM € 400'000 100% Line-by-line method
BALAXMAN Oy Metallite 4, FI-62200 Kauhava, FINLAND € 2'523 100% Line-by-line method
PRIMA MACHINE SERVICES INDIA PVT. LTD. Mezzanine Floor, Poonam Plaza 694/2B Market Yard Road, Pune INDIA Rs. 7.000.000 99,99% Line-by-line method
PRIMA POWER NORTH AMERICA Inc. 555W Algonquin Rd., Arlington Heights, IL 60005, U.S.A. USD 10.000 100% Line-by-line method
PRIMA POWER LASERDYNE LLC 8600, 109th Av. North, Champlin, MN 55316, U.S.A. USD 200.000 100% Line-by-line method
PRIMA POWER CANADA Ltd. 390 Bay Street Suite 2800 Toronto, Ontario M5H 2Y2 CANADA CAD 200 100% Line-by-line method
PRIMA POWER AUSTRALASIA Pty. LTD. Minter Ellison,LEVEL 3, 25 National circuit,Forrest, ACT, 2603 AUSTRALIA A$ 1 100% Line-by-line method
PRIMA INDUSTRIE 8
SUBSIDIARIES
PRIMA ELECTRO REGISTERED OFFICE SHARE CAPITAL OWNERSHIP CONSOLIDATION METHOD
PRIMA ELECTRO S.p.A. Strada Carignano 48/2, 10024 Moncalieri, (TO) ITALY € 6'000'000 100% Line-by-line method
OSAI UK Ltd.Mount House - Bond Avenue, Bletchley,
MK1 1SF Milton Keynes, UNITED KINGDOMGBP 160.000 100% Line-by-line method
PRIMA ELECTRO NORTH AMERICA LLC. 711 East Main Street, Chicopee, MA 01020, U.S.A. USD 24.119.985 100% Line-by-line method
PRIMA ELECTRO (CHINA) Co.Ltd. 23G East Tower, Fuxing Shangmao n.163, Huangpu Avenue Tianhe District 510620
Guangzhou P.R. CHINA€ 100'000 100% Line-by-line method
PRIMA INDUSTRIE 9
CHAPTER 2.
INTRODUCTION
PRIMA INDUSTRIE 10
CHAPTER 2. INTRODUCTION
FOREWORD
The Interim Management Report at 30/06/2013 of the PRIMA INDUSTRIE Group was prepared
pursuant to article 154-ter of Leg. Decree 58/1998 and subsequent amendments, as well as
the issuer's Regulation issued by CONSOB.
This Interim Management Report has been prepared in accordance with the International
Financial Reporting Standards ("IFRS") issued by the International Accounting Standards Board
("IASB") and recognized by the European Union and has been compiled in accordance with the
IAS 34 - Interim Financial Reporting.
Also note that, following retrospectively application of the amendment to IAS 19 from
01/01/2013, figures 2012 previously reported for comparison, where appropriate, have been
restated as required by IAS 1.
This Interim Management Report was approved by the Board of Directors on 28/08/2013. The
condensed consolidated financial statements, included in the Interim Management Report has
been subjected to a limited audit.
ALTERNATIVE PERFORMANCE INDICATORS
In this report, added to the conventional financial indicators required by the IFRS, some
alternative performance indicators are present in order to permit a better evaluation of the
economic-financial management.
Such indicators, which are also presented in the Management report, on the occasion of the
other periodic reports, must not on the other hand be considered as a substitute to the
conventional ones required by the IFRS.
The Group uses these alternative performance indicators:
� the EBIT (which corresponds to the "Operational profit"),
� the EBITDA ("Earnings before interest, taxes, depreciation and amortization"), which is
determined by adding to the "Operational profit" resulting from the Income Statement
both "Depreciation" and "Impairment".
Also mentioned furthermore:
� The "Value of Production" representing the algebraic sum of the items "Net income from
sales and services", "Other operational income", "Variations of the remains of unfinished
stock, finished products" and "Increment for internal work";
� the "Operational Working Capital" represents the algebraic sum of the "Stock in hand",
"Trade Receivables", "Trade Debtors" and "Accounts".
PRIMA INDUSTRIE 11
EXCHANGE RATES
The exchange rates applied in the conversion of the balances in currencies different from the
Euro with the aim of consolidation are the following.
CURRENCY June 30, 2013 June 30, 2012 June 30, 2013 Dec. 31, 2012
US DOLLAR 1,3135 1,2968 1,3080 1,3194
POUND STERLING 0,8512 0,8225 0,8572 0,8161
CHINESE RENMINBI 8,1294 8,1918 8,0280 8,2207
POLISH ZLOTY 4,1781 4,2443 4,3376 4,0740
CANADIAN DOLLAR 1,3345 1,3041 1,3714 1,3137
RUSSIAN RUBLE 40,7641 39,6978 42,8450 40,3295
BRAZILIAN REAL 2,6688 2,4151 2,8899 2,7036
INDIAN RUPEE 72,3070 67,6101 77,7210 72,5600
TURKISH LIRA 2,3818 2,3360 2,5210 2,3551
AUSTRALIAN DOLLAR 1,2966 1,2550 1,4171 1,2712
SPOT EXCHANGE RATEAVERAGE EXCHANGE RATE
PRIMA INDUSTRIE 12
CHAPTER 3.
GROUP INTERIM MANAGEMENT REPORT
PRIMA INDUSTRIE 13
CHAPTER 3. GROUP INTERIM MANAGEMENT REPORT
HIGHLIGHTS OF THE PERIOD
RENEWAL OF THE BOARD OF STATUTORY AUDITORS
The shareholders meeting held on 24/04/2013 renewed the Board of Statutory Auditors,
nominating as Regular Auditors Mr. Franco Nada, as Chairman, Mr. Roberto Petrignani e Mrs.
Paola Borracchini and as Alternate Auditors Mr. Roberto Coda and Mrs. Gaetana Laselva. The
Board of Statutory Auditors will be in charge until the approval of the financial statements as
at 31/12/2015.
ESTABLISHMENT OF A COMPANY IN AUSTRALIA
During the month of April PRIMA INDUSTRIE SpA established PRIMA POWER Australasia Pty Ltd, of whom it owns the 100%.The Group, who has already operated on the Australian and New
Zealand market through a distributor, decided to proceed to the opening of this company in
order to better monitoring this market and to give a direct commercial customer service, this
action helps intrinsically to reinforce the group’s commercial network who has applied a
considerable position inside foreign markets.
MACROECONOMIC CONTEXT
The international economic cycle hardly takes off. A part from the different historical
phases, there is a still standing asynchrony of the local economic cycle. The rhythm of the
worldwide commercial cycle still remains modest, especially for the high concentration of the
European importations. Among the flourishing countries, there is the increase of the problem
over the macroeconomic control in Brazil and China, the Chinese prospective of renaissance
has been reduced ,as a reflection of the insecure trend of these months and the acquisition of
restrictive measures over the liquidation front. For these countries the prospective of an
increasing exchange rate over the dollar is negative. The USA’ growth goes ahead, with a
volatile track and a satisfactory average. Between the beginning of the 2011 and the middle
of 2013 the average growth rate was 2%. Banca IMI expected in the second half of 2013 and accelerated in 2014 to the 2,5-3,0%. In particular, the forecast for 2013 is 1,9%, rising to 3,1%
in 2014, with upside risks. In the EUROZONE even if the doubts of the crisis are not bypassed,
the progressive shutdown of outbreaks who have constantly hit different countries in the eye
of the storm (the negotiation accomplishment over the bail-in in Cyprus, the unlock of the
Italian political situation, the stretching of the date of expire over the loans of Ireland and
Portugal, with the concession of an extra time for the fiscal correction of other countries)
has consented a decisive decrease of the evolution probability in an extreme sense of the
crisis. The first quarter of the 2013 should have presented the minimum point of the
economic round in the Eurozone. The economy is expected to be stabilized in the spring, and
is also expected to grow back in the second half of the year, driven by exports first and then
business investment, in the presence of a consumer spending and construction investment is
still very fragile. Moreover, the weak start to the year causes the contraction of GDP in 2013
will be slightly more pronounced than in 2012 (-0,7% compared to -0,5%).
The turning point in the Japanese economy, started in autumn with the new government and
the announcement of sweeping changes to the monetary policy strategy, he says. According
to Banca IMI growth in 2013 is expected at 1,8%, accelerating to 2,4% in 2014. The recovery is
PRIMA INDUSTRIE 14
now consolidated: the rise is strong since the beginning of 2013 thanks to the sustain of the
expenditure and the housing.
In China, we expect a moderate growth in the second half of the year, driven by the
acceleration of investments especially in infrastructure and transport, although in a financial
environment which becomes more complicated and in which the growth forecast (reduced
compared to previous estimates) for 2013 is expected to remain at 7,8% and for 2014 to 7,5%.
In India also the forecast of growth has been revisited from a discount with an expectation
for the 2013 of 5% GDP increasing and 6% for the 2014.
According to a recent estimate published by Eurostat, the GDP is diminished by 0,2% in the
Eurozone and by 0,1% in the EU27 during the first quarter of 2013, compared to the previous
quarter. In the fourth quarter of 2012, growth rates were -0,6% and -0,5% respectively.
Compared to the same quarter of the previous year, GDP in the first quarter of 2013
decreased by 1,1% in the Eurozone and by 0,7% in the EU27.
During the first quarter of 2013, U.S. GDP grew by 0,6% compared the previous quarter (after
+0,1% in the fourth quarter of 2012). In Japan, the GDP rose 0,9% in the first quarter of 2013,
after a real growth of 0,3% in the previous one. Compared to the first quarter of 2012, GDP
has regained 1,8% in the U.S. (after +1,7% in the previous quarter) and it remained stable in
Japan (after an increase of 0,4% the previous quarter) .
Despite a period of recession for the European economy, CECIMO (European Association of the
Machine Tool Industries) has recorded in the 2012 for the European production of machine
tool a growth of 8% equals to 22,6 billion. CECIMO estimates that the growth of the
production will be stable in the 2013 reaching 22,7 billion euro.
The overlook has worsened in the 2013 first quarter, when the countries of the association
have recorded a concentration export of 11%,with a strong reduction toward USA and toward
the European countries not belonging to CECIMO; the countries who, despite the
concentration, keep their importance like destinations of the export like Russia and the
Asiatic markets.
The USA’s association of builders (AMT) has recorded in the month of 2013 requests in the
diminishing of 7,6% than the last year May and an annual progressive which has been
reduced by 6,9% than 2012,according to the previsions which waited a slight concentration of
the market in the first half of the year, but neutralized by a recover in the second half of the
year thanks to an introduction of new technologies applied in the automotive sector and a
recover of the investments generally in the USA.
The American society of research Longbow, specialized in laser technology, records a
moderate growth of the USA sector in the first part of the year more unbalanced in favor of
technologies that use the fiber laser compared to the CO2 laser; on the international side the
countries where an higher demand is recorded, despite the reduction of the estimated GDP
growth, already mentioned, are for Longbow, China and Brazil, the latter, in particular, it is
driven by the demand of the automotive sector and industry in general. On the domestic
front, UCIMU (the Association of Italian manufacturers of machine tools) detects in the second
quarter of 2013, a marginal increase in orders of 0,7%, solely due to the collection statistics,
while on a semiannual basis the trend shows a setback of 6% due to the poor response
obtained by the builders on the Italian market (-29,6%) and weak foreign demand (-1%).
In this context, the results achieved by the PRIMA INDUSTRIE Group are framed and reported
below.
PRIMA INDUSTRIE 15
REVENUES AND PROFITABILITY
The consolidated revenues at 30/06/2013 amount to 161,945 thousand euro, compared with
the corresponding period of the 2012 financial year (163,525 thousand euro).
The consolidated turnover is shown below on a geographic basis at 30/06/2013 compared with
the corresponding period for the previous financial year.
Sales by geographical segment reports a growing revenues in markets of Asia and in the Rest
of the World (+19,267 thousand euro), the revenue produced reaches 35,5% of consolidated
sales. In Europe (including Italy) there is an overall decrease of 19,8% (-17,238 thousand
euro), confirming the moment of weakness of the European economy. The Sales in North
America was down slightly compared to the same period of 2012, but this figure is the result
of a particularly weak first quarter of 2013, having been temporarily affected by the
slowdown of orders booked in autumn 2012, during the pre-USA election, however, already in
the second quarter, the USA market has accounted an increase in the turnover respect to the
2012 (+5,1%).
There is also a reinforcement of the trend already recorded from the previous financial year,
bringing the realized sales outside Europe (56,9%) to overcome the European ones, including
Italy(43,1%),confirming the shift of the center of gravity of the global economy.
The following table illustrates the breakdown of revenues by segment before inter-segment
items (for more information about the Group's operating segments, see Note 6.30 – Segment
information).
In order to complete the disclosure of revenue, it’s been exposed below the division of the
same (net of intercompany amounts) by segment and by geographical area, both for the first
half of 2013 than for the same period of 2012.
Revenues
Euro thousand % Euro thousand %
Italy 17'250 10,7 21'407 13,1
Europe 52'540 32,4 65'621 40,1
North America 34'622 21,4 38'231 23,4
Asia and rest of the world 57'533 35,5 38'266 23,4
TOTAL 161'945 100,0 163'525 100,0
June 30, 2013 June 30, 2012
Revenues
Euro thousand % Euro thousand %
PRIMA POWER 143'480 88,6 143'887 88,0
PRIMA ELECTRO 25'835 16,0 29'425 18,0
Inter-sector revenues (7'370) (4,6) (9'787) (6,0)
TOTAL 161'945 100,0 163'525 100,0
June 30, 2013 June 30, 2012
Revenues segment/area - June 30 2013 Italy Europe North AmericaAsia and rest of
the worldTOTAL
€/000
PRIMA POWER 11'999 43'182 33'542 54'732 143'455
PRIMA ELECTRO 5'251 9'358 1'080 2'801 18'490
TOTAL 17'250 52'540 34'622 57'533 161'945
PRIMA INDUSTRIE 16
The revenues of the PRIMA POWER division are aligned respect to the correspondent period of
the previous financial year. The division has totalized sales for 38,2% toward Asia and the rest
of the world (especially China, Russia and Turkey) for 30,1% toward Europe, for 23,4% to
North America and for 8,3% over the domestic market. The market of Asia and of the rest of
the world it’s for PRIMA POWER the most significant market and in the first half of the 2013 it
increased by 50,8% respect to 2012.The results of the north American market ,as we have
said, are the consequences of two quarters with contrasting results, and in the second 2013
quarter the division has recorded in this market a growth of 6,6%.
The segment PRIMA ELECTRO respect to the first half of the year of 2012 suffers a sales
diminishing toward third customer (-1,179 thousand euro) in all the areas excluded Asia and
the rest of the world. This fall is due to the reduction of sales of CO2 laser sources and of the
DOTS products, which has not been compensated from the increase of OSAI products. On this
purpose is ongoing in the division a phase-out of some products, that still has not been
compensated from new products’ phase-in. The division has realized sales for 50,6% towards
the Europe (largely in Spain and Benelux),for 28,4% towards Italy ,for 15,2% to countries of
Asia and the rest of the world (mostly in China) e the last 5,8% towards North America . These
values don’t take in account the turnover made by PRIMA ELECTRO toward PRIMA POWER
division.
At 30/06/2013 the value of production results equal to 172,867 thousand euro, a decreasing
of 3% respects to a correspondent period of the 2012 financial year (a decrease of 4,725
thousand euro).
In the production value of the period there are increases in fixed assets for internal work
equal to 4,090 thousand of euro (at 30/06/2012 3,020 thousand euro);these costs are referred
principally to investments in the development costs.
The EBITDA is equal to 11,354 thousand euro (7% of turnover),and it results to have a slight
increase respect to the correspondent 2012 financial year. Here below there is the exposition
of the EBITDA of the group at 30/06/2013 and at 30/06/2012 divided into segments (gross of
the inter-sector transactions).
Revenues segment/area - June 30 2012 Italy Europe North AmericaAsia and rest of
the worldTOTAL
€/000
PRIMA POWER 15'094 55'629 36'839 36'294 143'856
PRIMA ELECTRO 6'313 9'992 1'392 1'972 19'669
TOTAL 21'407 65'621 38'231 38'266 163'525
Performance indicators
Euro thousand % on sales Euro thousand % on sales
EBITDA 11'354 7,0 11'219 6,9
EBIT 5'433 3,4 5'685 3,5
EBT 579 0,4 1'986 1,2
NET RESULT (221) (0,1) 310 0,2
June 30, 2013 June 30, 2012
EBITDA
Euro thousand % Euro thousand %
PRIMA POWER 8'110 71,4 7'580 67,6
PRIMA ELECTRO 3'582 31,6 4'017 35,8
Inter sector items and eliminations (338) (3,0) (378) (3,4)
TOTAL 11'354 100,0 11'219 100,0
June 30, 2012June 30, 2013
PRIMA INDUSTRIE 17
The Consolidated EBIT at 30/06/2013 amounted to 5,433 thousand euro a slight decrease of
252 thousand euro compared with the first six months of 2012 (5,685 thousand euro), due to
the slowdown of the PRIMA ELECTRO division. On this result there is the effect of tangible
fixed assets' depreciation and intangible assets of 1,334 thousand euro and for 4,518 thousand
euro. For what concern to the depreciation of intangible assets, the main relate to the
depreciation of development costs (2,516 thousand euro) and the depreciation related to
assets with a defined useful life recognized in the business combination of the FINN POWER
Group (brand and relations with customers - "customer list"), which amounted to 1,504
thousand euro.
Here below there is the exposition of the EBIT of the group at 30/06/2013 and at 30/06/2012
divided into segments gross of the inter-sector transactions.
The consolidated EBIT at 30/06/2013 amounted to 579 thousand euro, a decrease of 1,407
thousand euro compared to the corresponding period of the previous year (1,986 thousand
euro), this decrease is almost entirely due to the negative effect of the investments not fully
consolidated (negative effect semester after semester of 1,320 thousand euro). It should be
noted that this value reflects net charges arising from financial operations (including net
exchange differences) for 4,378 thousand euro (at 30/06/2012 it amounted to 4,544 thousand
euro).
There are expenses for the loan contracted in 2008 for the acquisition of FINN-POWER Group
(here followed for short form ‘’FINPOLAR Loan’’) equal to 1,815 thousand euro and net
financial expenses for derivates (mainly linked to FINPOLAR Loan) FOR 1,158 thousand euro.
In order to confront in a correct way the dates of the two semesters we need to underline
that the result of the financial management of the first semester 2012 was positive influenced
from a not recurring income equal to 311 thousand euro; due to this effect the financial
expenses have a betterment of 477 thousand euro. The decrease financial expenses related to
the FINPOLAR Loan is due also to the decrement of the residual capital, following the
reimbursement, and also to a EURIBOR diminishing. However the EURIBOR reduction has
negatively influenced the IRS derivatives.
The result of the exchange rate differences at 30/06/2013 is negative for 288 thousand euro
(negative for 160 thousand euro at 30/06/2012).
EBIT
Euro thousand % Euro thousand %
PRIMA POWER 3'193 58,8 2'972 52,3
PRIMA ELECTRO 2'580 47,5 3'085 54,3
Inter sector items and eliminations (340) (6,3) (372) (6,6)
TOTAL 5'433 100,0 5'685 100,0
June 30, 2012June 30, 2013
Financial results (€/000) June 30, 2013 June 30, 2012
Finpolar loan expenses (1'815) (2'394)
Derivates expenses (IRS) (1'101) (1'033)
Derivates expenses (CRS) (57) (186)
Other financial expenses (1'117) (771)
Net exchange differences (288) (160)
TOTAL (4'378) (4'544)
PRIMA INDUSTRIE 18
The net result of the investments not fully consolidated of the first 2013 semester is negative
for 476 thousand euro and it refers for -487 thousand euro over the devaluation carried out in
the investments in Electro Power System (EPS) and Caretek both held by PRIMA ELECTRO SpA
and for +12 thousand euro of gain for the sale of one quota equal to the 10% of the
investments held in the Chinese JV SUP.
At 30/06/2013 the NET RESULT is negative and it amounts to 221 thousand euro (EUR +310
thousand euro at 30/06/2012). Income taxes for the first six months of 2013 show a net loss
of 800 thousand euro (of which IRAP equal to 715 thousand euro). The Group has subscribed a
tax credit amounting to 1,048 thousand euro following the introduction of claims for
reimbursement IRES (IRAP deductions for IRES for the years 2007-2011) in February 2013.
BALANCE SHEET
Here below a reclassified balance sheet of the PRIMA INDUSTRIE Group.
Following the retrospective 01/01/2013 Amendment to IAS 19, the data reported for 2012
have been restated for comparative purposes as required by IAS 1. For more information, see
Chapter 6 in the section "Accounting principles".
Tangible and intangible assets (other than goodwill) of PRIMA INDUSTRIE Group decreased
from the previous year of 675 thousand euro. The movements of the period relate to the
normal activities of the Group (net increases of 5,155 thousand euro, of which 3,911 thousand
euro relating to development costs, depreciation and amortization for 5,852 thousand euro
and positive exchange rate differences for 22 thousand euro). The change for the period
relating to the goodwill is attributable only to the currency adjustment. Investments and
other non-current assets decreased by 343 thousand euro mainly due to write-downs of
investments held by PRIMA ELECTRO SpA in EPS and Caretek.
Values in Euro thousand June 30, 2013 Dec. 31, 2012 June 30, 2012
Tangible and intangible fixed assets 72'384 73'059 74'470
Goodwill 102'700 102'680 102'813
Equity investments and other non-current assets 333 676 1'182
Deferred tax assets 7'656 6'606 7'085
NON-CURRENT ASSETS 183'073 183'021 185'550
Inventories 87'477 81'084 100'089
Trade receivables 71'275 70'702 66'254
Trade Payables (75'863) (72'404) (78'445)
Advances (16'586) (16'992) (28'614)
OPERATING WORKING CAPITAL 66'303 62'390 59'284
Other current assets and liabilities (7'500) (10'149) (10'517)
Current tax assets and liabilities 1'851 (1'070) (2'493)
Provisions for risks and employees benefits liabilities (19'965) (19'192) (17'191)
Deferred tax liabilities (10'107) (9'297) (9'764)
Non-current assets held for sales 1'670 4'130 9'219
NET INVESTED CAPITAL 215'325 209'833 214'088
NET INDEBTEDNESS 130'677 126'279 134'407
NET EQUITY 84'648 83'554 79'681
SOURCES OF FINANCE 215'325 209'833 214'088
PRIMA INDUSTRIE 19
The Operating working capital increased from the previous year to 3,913 thousand euro,
mainly due to the increase in inventories caused by the need to sustain sales volumes in the
second half of the year.
At 30/06/2013 the Group's net financial position amounted to 130,677 thousand euro,
compared to the end of the previous year there was an increase of 4,398 thousand euro (for
further comments on this item, please go to the section " Net Financial Position ").
Net equity increased compared to the previous year of 1,094 thousand euro. This increase is
the result of the positive effects derived from the fair value of hedging derivatives ( 1,161
thousand euro), from the capital increase due to conversion of warrants (106 thousand euro)
and the adjustment of the reserve currency translation (48 thousand euro), and the negative
impact resulting from the loss for the period (221 thousand euro).
NET FINANCIAL POSITION
At 30/06/2013 the net financial position of the Group is negative for 130,677 thousand euro,
compared with the corresponding period of the previous financial year it improves of 3,730
thousand euro (negative for 134,407 thousand euro at 30/06/2012).
Here below the detail of the net financial position.
In order to give more information about the net consolidated financial position at
30/06/2013,it occurs to remember that:
� The FINPOLAR Loan amounts to 122,701 thousand euro and it’s subjected to the
attention of some covenants measured on an yearly and half-yearly base (for a further
detail please refer the 31/12/2012 balance);
� The finance lease liabilities are equal to 2,857 thousand euro;
� The bank debts include the negative fair value of derivatives 6,114 thousand euro;
the main are IRS contracted from the mother company partial hedging the risk of
interest rate over the FINPOLAR Loan (the subscription of these derivatives was
scheduled from the below financing contract)
It should be noted that 28,515 thousand euro classified in current financial liabilities are
related to revolving credit lines, of which 17,860 thousand euro expiring on 31/01/2016 and
10,655 thousand euro expiring 12/11/2014.It should be noted that at 04/02/2013 the
company has regularly paid the installment due relatives to the FINPOLAR Loan relating to the
capital share A and C1 for 5,123 thousand euro, representing the parts of interests A, B and D
for 1,306 thousand euro and the differential over the derivative for 1,039 thousand euro.
In addition, at the date of preparation of these financial statements, it has been repaid the
installment due on 05/08/2013 equal to 6,752 thousand euro, divided as follows:
Value expressed in Euro thousand June 30,2013 Dec. 31, 2012 June 30, 2012
CASH & CASH EQUIVALENTS (18'208) (24'459) (18'294)
CURRENT FINANCIAL RECEIVABLES (692) (4'740) -
CURRENT FINANCIAL LIABILITIES 55'504 56'513 47'829
NON CURRENT FINANCIAL LIABILITIES 94'073 98'965 104'872
NET FINANCIAL LIABILITIES 130'677 126'279 134'407
PRIMA INDUSTRIE 20
� Capital share A and C1 to 5,123 thousand euro;
� Interest tranche A and B for 1,113 thousand euro;
� Differential on derivative for 516 thousand euro
The covenants measured on the interim consolidated financial statements at 30/06/2013 results respected.
For more details about the net financial position, see the Explanatory Note 6.10.
EXHIBITIONS AND ORDER BACKLOG
The Group during the first semester has participated to these meetings:
We want to remark also that between the 4th and the 7th of June there was in Finland the
event called ‘’PRIMA POWER Customer Days’’. In this event, organized by the Finnish product
unit have attended more than 300 visitors coming from 35 countries. The main argument of
the days was the celebration of 3 birthdays: 30 years of experience inside the punching
machine technology, 20 years into the two-dimensional laser machines and also 15 years for
the importance of being the seller of sheet metal worker machines.
During the 2013 first semester, the acquisition of orders (exclusively of the after-sale
service) was equal to 170 million euro, respect to the 175,1 million euro at 30/06/2012.The
reduction in front of the first semester of the 2012 financial year is attributable exclusively
to the PRIMA ELECTRO division; in fact the order acquisition of the segment PRIMA POWER
was equal to 153,6 million euro (stable respect the 153,9 million euro at 30/06/2012) while
what is relative to the segment PRIMA ELECTRO, as external clients of the Group, was 16,4
million euro ( in diminishing respect to the 21,2 million euro at 30/06/2012 ).
At 30/06/2013 the consolidate order portfolio (without being include to the after-sale
service) amounts to 94,6 million euro respect to 116,5 million euro at 30/06/2012.This
reduction is not solely to be attributable to the reduction in the acquired orders ,but is also
the result of an improved ability of the Group to reduce the time over which there are the
demand of the client and the recognition of the relative turnover. The Portfolio comprehends
Exhibition Place Date
Southern Manufacturing Farnborough - UK February-13
Ankara Industrial Cooperation Days in Defense & Aerospace Ankara - Turchia March-13
BLECH RUSSIA St. Peterburg - Russia March-13
Hearth, Patio, & Barbecue Expo (HPB) Orlando - USA March-13
INAPA Jakarta - Indonesia March-13
FORMATOOL Celje - Slovenia April-13
BLECH INDIA Mumbai - India April-13
CIMT Beijing - Cina April-13
VARNAMO INDUSTRIEXPO Varnamo - Svezia April-13
FABTECH MEXICO Monterrey - Messico May-13
AUSTECH Melbourne - Australia May-13
INTERNATIONAL FAIR OF TECHNIQUE AND TECHNICAL ACHIEVEMENTS Belgrad - Serbia May-13
MTT Jakarta - Indonesia May-13
METALLOOBRABOTKA Moscow - Russia May-13
FEIMAFE São Paulo - Brasile June-13
ITM POLSKA Poznan - Polonia June-13
INTERNATIONAL PARIS AIR SHOW Le Bourget - Francia June-13
PRIMA INDUSTRIE 21
83,6 million euro relative to the segment PRIMA POWER and 11 millions relatives to the
segment PRIMA ELECTRO. At 31/07/2013 the order portfolio increased by 98,3 million euro.
RESEARCH AND DEVELOPMENT
The activity of research and development done in the Group during the 2013 first semester
was entirely equal to 9,627 thousand euro ( of what 7,402 thousand euro inside the segment
PRIMA POWER and 2,225 thousand euro inside the segment PRIMA ELECTRO) equal to the 6% of
the turnover. The capitalized share was equal to 3,911 thousand euro ( of which 2,890
thousand euro in the segment PRIMA POWER and 1,021 thousand euro in the segment PRIMA
ELECTRO).The sustained cost level in the research activities and in the development of new
products, testify the coherent effort of the Group for the investment on the future of the
development, through the presence of products always into the cutting age of the
technology, of the proper competiveness over the international markets. For the capitalized
activities of development have been verified the credibility technique and the generation of
possible future economic benefits.
During the first semester of the year the main activities which have called the attention on
the division PRIMA POWER were:
� the introduction of a completely new line ( Punch Bend ), which combines the
technologies of punching and paneling to efficiently produce components with singular
peculiarities , starting from pre-cut sheets of metal;
� the introduction of a new automation solution, created to be used on punch presses,
applied on a 2D laser machine (PLATINO), which allows, in an automatic way, to carry
out the sorting and stacking of the cut pieces; such solution was presented during the
Customer Days held in June in Kauhava (Finland), finding a very good response from
the customers;
� the launch of a new generation of machine LPe6f, a laser-punch combination machine
of new generation equipped with fiber laser 2 and 3 kW and equipped with high-level
performance;
� the introduction over the two lines of bending servo-electric machines (bending
presses and paneling) of hardware and software updates, new features, new options
and new customizations and industrialization ;
� new model of the Software Tulus® to program and to define in an automatic way:
tools, nesting and to manage the phases of the working. It can also communicate
directly with the system ERP for exchanging managerial dates of production,
� the new software for monitoring and diagnostics "The Operator" is a valid support for
the maintenance of the machines and for the prevention of damages and for the
collection of useful data for diagnosis; the integration of BD3Y (the compact rotating
head Beam-Director) on the machine LASERDYNE 430 for cutting, drilling, and the 3D
welding of small components. The first unit of this machine, called 430BD, is
scheduled for delivery to a customer in the third quarter of 2013.
The activity of research and development relatives to the division PRIMA ELECTRO during the
first semester of 2013 were the followings:
� testing of the new high voltage power supplier (HVPS) Mark 2 originally planned for
models like CV5000 and CV6000 and for the preparation and for the production of the
first lasers with such HVPS Mark 2 for the testing phase of the customer;
PRIMA INDUSTRIE 22
� regarding OPENcontrol, the continued application of the OPEN paneling machines FBe5
and EBe6 and the beginning of alpha testing of machine laser Platino as well as the
beginning of the phase of alpha testing of the laser machine RAPIDO and the pouncing
machine E5x;
� the development of new forms of I / O with EtherCAT interface to extend the product
range and starting some software that will allow developments to propose OPEN in the
field of metal processing, as well as the conclusion of the development of all sizes (6A,
12A and 18A) of the new family of drives called OD600 (OpenDrive 600), which has now
completely replaced the previous generation;
� the development of a new low cost version of operator consoles, with functions and
the cost are lower than the standard modular line;
� the development, in parallel with the validation "in the field" and the certification of
the family D-ARC and ARC-C family that extends downward the power range of this
new generation of inverters for asyncron motors (70 kW to 155 kW).
PERSONNEL
At 30/06/2013 the employees of the Group are 1557 of which 1296 in the Division PRIMA
POWER and the resting 261 in the division PRIMA ELECTRO .Respect to the 31/12/2012 the
employees increases by 36 units.
OPERATION WITH RELATED PARTIES
The extraordinary shareholders' meeting of PRIMA ELECTRO SpA, a company 100% owned by
PRIMA INDUSTRIE SpA, on 25/06/2013 has deliberated the increase of the share capital by
euro 9.000.000 increasing it from euro 6.000.000 to euro 15.000.000, the sole shareholder
PRIMA INDUSTRIE SpA, the owner of a receivable of euro 17.800.000 toward PRIMA ELECTRO
SpA, built for the deferred payment of the price at the time of the sale (December 2010) of
the American subsidiary PRIMA NORTH AMERICA (now renamed PRIMA ELECTRO NORTH
AMERICA) from PRIMA INDUSTRIE to PRIMA ELECTRO have declared to subscribe the capital
increase through partial compensation with this receivable. The expiry of the remaining
receivable, amounting to euro 8.800.000, claimed by PRIMA INDUSTRIE SpA from PRIMA
ELECTRO SpA has been postponed to 30/06/2018. The transaction, which was completed in
July, 2013, although that occurred between related parties, has not been subjected to the
procedure for transactions with related parties in the case of operation with subsidiary
company, exempted under Article 32 of the procedure for Transactions with Related Parties
approved by the Board of Directors on 10/11/2010 and amended by the Board of Directors on
13/03/2013.
For more details about other Group transactions with related parties, see "Note 6.28 -
INFORMATION ON RELATED PARTIES".
Values expressed in units
30/06/2013 31/12/2012 30/06/2013 31/12/2012 30/06/2013 31/12/2012
Production & Installation 469 426 125 132 594 558
Sales & Marketing 131 134 24 32 155 166
Service & Spare Parts 423 429 27 28 450 457
R&D and Product Management 162 154 61 54 223 208
General & Administrative 111 110 24 22 135 132
Total 1'296 1'253 261 268 1'557 1'521
PRIMA POWER PRIMA ELECTRO PRIMA GROUP
PRIMA INDUSTRIE 23
STOCK TREND AND TREASURY STOCK
During the first half of 2013 the stock PRIMA INDUSTRIE passed from a unitary value of 9,305
euro at 02/01/2013,to a value of 8,64 euro for one stock at 28/06/2013.In the half year the
share has reached at 25/03/2013 a maximum of 9,94 per shares and a minimum of 8,60 euro
at 25/06/2013. The decline of the track of the shares in the last part of the half year has
coincided with the direction of the benchmark and of the stock market which undergoes a
correction in the same period.
After 30/06/2013,the share has newly and in a stable way surpassed the soil of 9 euro per
share. keeping his value higher than strike of 8,50 euro of the circulating and expiry warrant
the 16/12/2013.
At 30/06/2013,as well as at the approval date of the INTERIM FINANCIAL REPORT, PRIMA
INDUSTRIE SpA didn’t hold and doesn’t hold no proper share even if there is no the acquisition
resolution for own stocks.
SHAREHOLDINGS SCTRUCTURE
At 30/06/2013 the capital of PRIMA INDUSTRIE SpA amounts to Euro 21.637.622,50 divided
into n. 8.655.049 ordinary shares with a nominal value of euro 2,50 each. No categories of
shares other than ordinary shares have been issued, nor have bonds. Instead, as at
30/06/2013 there are 2.224.951 "PRIMA INDUSTRIE Warrants 2009-2013” in circulation.
At the date of this report, the share capital amounted to euro 21.638.060.
Despite the shareholders register and subsequent communications received by the Company
or by the supervisory authority, the most updated shareholding structure is this below:
STOCK OPTION PLANES
In the May 2011 the vesting pe
the assembly of the 29/04/20
the Parent Company, of PRIM
Director of PRIMA INDUSTRIE
The beneficiaries therefore h
established at 28,68 euro per
June 2014 (date of expiry of t
maturity of the plan:
� 1st June – 30 June � 1st October - 30 Octobe
The beneficiaries of the plan
For further information on the subject of
www.primaindustrie.com.
As it results from the cur
‘’PERFOMANCE AND TREASUR
LAST NAME AND FIRST NAME
CARBONATO Gianfranco
BASSO Ezio
PEIRETTI Domenico
RATTI Massimo
period of the stock option plan approved by
008 terminated, originally intended to the bo
A ELECTRO SpA and of FINN POWER OY, as w
SpA and the financial Director of Group.
ave the right to exercise the options grante
r share, from the 1st of June, 2011 and no la
the plan), in the following two periods of ea
ber
at the date of this Interim Financial Report
of the stock option plan, attention is drawn to the publicat
rrent prices of the shares PRIMA INDUS
Y SHARES’’),the options are largely out of m
POSITION
PRIMA INDUSTRIE SpA President & CEO
PRIMA INDUSTRIE SpA General Manager a
PRIMA ELECTRO SpA Managing Director
PRIMA INDUSTRIE SpA Managing Director
PRIMA INDUSTRIE Group CFO
PRIMA INDUSTRIE 24
PRIMA INDUSTRIE
board of directors of
well as the General
d at the price now
ater than ,the 30th of
ach year until
t are as follows.
ion on the company web-site:
TRIE (see paragraph
money.
and Managing Director
and
r
PRIMA INDUSTRIE 25
BUSINESS OUTLOOK
Despite the general economic situation is not favorable in most part of the Europe, the
contribution from the good performance of the foreign markets has allowed us to achieve in
the first semester a result in line with the first half of the previous year. On the basis of an
available market information, the Group is also expected for the second semester a trend
similar to the previous year.
EVENTS WHICH TOOK PLACE AFTER THE END OF THE QUARTER
Operation of increasing capital in PRIMA ELECTRO SpA:
We remind you at the information supplied by the paragraph “Operations with Related
Parties”.
Constitution of PRIMA POWER Suzhou
At 28/08/2013 the PRIMA INDUSTRIE SpA Board of Directors has deliberated the constitution
of PRIMA POWER Suzhou Co. Ltd., one Chinese society (WOFE, wholly owned foreign
enterprise),of which PRIMA INDUSTIRE SpA will detain the 51%;the rest 49% will be held from
two Honk Kong partners: JINGHAI Group LTD (30%) and LEEPORT MACHINE TOOL Co. LTD
(19%). The initial duration of the new company is 10 years and the share capital will be US$ 8
million (equal to RMB 50 million).
While PRIMA INDUSTRIE SpA is already present directly and through a distributor in the
Chinese market (which is granted to be the 50% of the worldwide market of the machineries),
PRIMA POWER Suzhou was born with the purpose to serve the known ‘’mid market’’, the
sector with more percentage of growth, characterized by medium quality machineries, locally
produced and sold to Chinese customers who cannot permit to buy expensive machineries
with an high range of importation. The group can also count a new establishment with a
surface of 8000 m2 , in Suzhou, 200km nearby Shanghai; the establishment will be terminated
in a short period of time in order to grant the beginning of the production until the end of the
2014.The Society , who will employ more then100 workers ,is going to generate sales for more
than RMB 300 million within 2017 having an EBITDA of more than 15%.
Other Events
On 24/07/2013, at the conclusion of an inspection for the period 01/01/2008 - 29/04/2013
it’s been notified by the Tax Office of Verona a report of findings to FINN-POWER OY which
has been disputed the existence of a permanent establishment in Italy.
The company believes that is completely unfounded the charge due to the presence in Italy of
the company FINN-POWER Italy Srl, entirely owned by FINN-POWER OY, through which there
were always the realization of every activity and operations over the Italian market and
reserves the right to dispute the charge in the appropriate places.
The determination of any claim of the tax authority has been referred to the Inland Revenue
office.
ATYPICAL AND UNUSUAL OPERATIONS
Pursuant to Consob Communication of 28/07/2006 n. DEM/6064296, it should be noted that,
during the reporting period, the Group did not carry out any atypical and / or unusual
transactions, as defined by the Communication.
PRIMA INDUSTRIE 26
CHAPTER 4.
ECONOMIC PERFORMANCE BY SEGMENT
PRIMA INDUSTRIE 27
CHAPTER 4. ECONOMIC PERFORMANCE BY SEGMENT
The Group operates with an organizational structure based on the concentration of its
activities into two divisions: the PRIMA POWER division and PRIMA ELECTRO division.
The PRIMA POWER division includes designing, manufacturing and marketing of:
� cutting, welding and drilling machines for three dimensional (3D) and two dimensional
(2D) metal components and
� the machines for processing plate through the use of mechanical tools (punching
machines, integrated systems for punching and shearing, integrated systems for
punching and laser cutting, paneling machines and automation systems).
The PRIMA ELECTRO division includes the development, manufacturing and marketing of
electronic power and control components as well as high power laser sources for industrial
applications, destined for the Group's machines and third party clients.
Shown here below, is a summary table of the economic trend for the two sectors in which the
Group currently operates.
PRIMA POWER
The revenues of the first semester of 2013 of the PRIMA POWER division are substantially in
line compared with the corresponding period of the previous financial year. The best results
in terms of turnover were recorded in the markets of Asia and the Rest of the World, this
being a geographical area that continues to grow, which supports the increasing levels of
turnover of the division.
In the face of 143,480 thousand euro of revenue, the EBITDA of the segments is equal to
8,110 thousand euro, an increase both in absolute value (+530 thousand euro), and in
percentage terms (passing from the 5,3% to 5,7%) confirming a greater level of efficiency
achieved by the division.
PRIMA ELECTRO
The segment PRIMA ELECTRO respect to the correspondent previous financial year registers a
decrease in the sales of 3,590 thousand euro. This decrease is substantially due to the
reduction of the sales in the laser sources of CO2 and in the products DOTS, of which there
isn’t the compensation of the increase over the OSAI products.
Values in Euro thousand REVENUES EBITDA % on Revenues EBIT % on Revenues
PRIMA POWER 143'480 8'110 5,7% 3'193 2,2%
PRIMA ELECTRO 25'835 3'582 13,9% 2'580 10,0%
ELIMINATION (7'370) (338) 4,6% (340) 4,6%
GROUP 161'945 11'354 7,0% 5'433 3,4%
June 30, 2013
Values in Euro thousand REVENUES EBITDA % on Revenues EBIT % on Revenues
PRIMA POWER 143'887 7'580 5,3% 2'972 2,1%
PRIMA ELECTRO 29'425 4'017 13,7% 3'085 10,5%
ELIMINATION (9'787) (378) 3,9% (372) 3,8%
GROUP 163'525 11'219 6,9% 5'685 3,5%
June 30, 2012
PRIMA INDUSTRIE 28
PRIMA ELECTRO’s EBITDA is equal to 3,582 thousand euro in decrease respects to the
correspondent previous financial year of 435 thousand euro. The deterioration of the absolute
value is due to an essential volume reduction, but we signal an increment in the profitability
mainly due to an improve management of the costs as well as the obtain of public
contributions over a research project.
PRIMA INDUSTRIE 29
CHAPTER 5.
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF PRIMA
INDUSTRIE GROUP AT 30/06/2013
ACCOUNTING TABLES (*)
(*) Following the retrospective application on 01/01/2013 of the Amendment to IAS 19, the data relating to 2012 reported for comparative purposes in the financial statements have been restated, where appropriate, as
required by IAS 1.
PRIMA INDUSTRIE 30
CHAPTER 5. INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF PRIMA INDUSTRIE
GROUP AT 30/06/2013
CONSOLIDATED FINANCIAL BALANCE SHEET
01/01/2012 Values in Euro Notes 30/06/2013 31/12/2012
24'472'946 Property, plant and equipment 6.1 24'068'253 24'343'935
152'629'950 Intangible assets 6.2 151'015'377 151'395'283
8'961'044 Investments accounted for using the equity method - -
1'076'998 Other investments 6.3 293'735 567'149
- Non current financial assets 6.4 15'000 83'700
6'648'479 Deferred tax assets 6.5 7'655'745 6'605'259
25'518 Other non current assets 6.8 24'588 25'183
193'814'935 NON CURRENT ASSETS 183'072'698 183'020'509
84'249'605 Inventories 6.6 87'476'813 81'083'768
88'282'812 Trade receivables 6.7 71'274'803 70'702'422
6'406'214 Other receivables 6.8 9'517'414 7'516'732
5'592'470 Current tax receivables 6.9 7'004'236 3'839'898
- Derivatives 6.10 7'623 69'655
528'637 Financial assets 6.10 684'846 4'671'135
25'179'041 Cash and cash equivalents 6.10 18'207'543 24'458'666
210'238'779 CURRENT ASSETS 194'173'278 192'342'276 0
1'012'201 ASSETS HELD FOR SALE 6.11 1'669'816 4'129'852 0
405'065'915 TOTAL ASSETS 378'915'792 379'492'637
21'601'740 Capital stock 6.12 21'637'623 21'606'553
4'320'069 Legal reserve 6.12 4'321'310 4'320'069
54'326'182 Other capital reserves 6.12 56'342'489 53'215'933
1'331'310 Currency translation reserve 6.12 (476'176) (524'506)
(3'597'028) Retained earnings 6.12 3'043'419 (370'776)
1'932'659 Net result 6.12 (221'153) 5'306'613
79'914'932 Total Stockholders' equity of the Group 84'647'512 83'553'886
Minority interest - -
TOTAL STOCKHOLDERS' EQUITY 84'647'512 83'553'886
102'350'641 Interest-bearing loans and borrowings 6.10 88'045'577 91'702'909
7'077'491 Employee benefit liabilities 6.13 7'702'990 7'629'302
9'737'709 Deferred tax liabilities 6.14 10'106'654 9'296'512
124'009 Provisions 6.15 126'353 133'403
7'611'171 Derivatives 6.10 6'026'805 7'262'196
126'901'021 NON CURRENT LIABILITIES 112'008'379 116'024'322
79'797'117 Trade payables 6.16 75'862'685 72'403'779
32'355'143 Advance payments 6.16 16'586'229 16'991'891
17'539'790 Other payables 6.16 17'017'295 17'665'682
52'031'067 Interest-bearing loans and borrowings 6.10 55'417'110 56'513'455
6'404'295 Current tax payables 6.17 5'153'464 4'909'673
10'022'786 Provisions 6.15 12'135'974 11'429'949
99'764 Derivatives 6.10 87'144 -
198'249'962 CURRENT LIABILITIES 182'259'901 179'914'429
405'065'915 TOTAL STOCKHOLDERS' EQUITY AND LIABILITIES 378'915'792 379'492'637
PRIMA INDUSTRIE 31
CONSOLIDATED INCOME STATEMENT
Values in Euro Notes 30/06/2013 30/06/2012
Net revenues 6.18 161'945'354 163'524'879
Other income 6.19 2'396'144 1'897'115
Change in inventories of finished goods and WIP 4'435'735 9'149'450
Increases in fixed assets for internal work 6.20 4'090'135 3'020'226
Use of raw materials, consumables, supplies and goods (76'903'124) (80'785'597)
Personnel cost 6.21 (46'230'532) (45'827'889)
Depreciation 6.22 (5'851'983) (5'341'217)
Impairment 6.22 (69'000) (192'199)
Other operating expenses 6.23 (38'380'033) (39'759'414)
OPERATING PROFIT 5'432'696 5'685'354
Financial income 6.24 208'202 53'094
Financial expenses 6.24 (4'298'582) (4'437'305)
Net exchange differences 6.24 (287'837) (159'537)
Net result of investments not fully consolidated 6.25 (475'942) 844'403
RESULT BEFORE TAXES 578'537 1'986'009
Taxes 6.26 (799'690) (1'676'148)
NET RESULT (221'153) 309'861
- Attributable to Group shareholders (221'153) 309'861
- Attributable to minority shareholders - -
RESULT PER SHARE - BASIC (in euro) 6.27 (0,03) 0,04
RESULT PER SHARE - DILUTED (in euro) 6.27 (0,03) 0,03
PRIMA INDUSTRIE 32
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
VALUES IN EURO Notes June 30, 2013 June 30, 2012
NET RESULT OF THE PERIOD (A) (221'153) 309'861
Gains/ (Losses) on cash flowhedges 6.12 1'160'454 (260'891)
Gains/ (Losses) on exchange differences on traslating foreign operations 6.12 48'330 (503'304)
TOTAL OTHER COMPREHENSIVE GAINS/(LOSSES)WHICH WILL BE
SUCCESSIVELY RECLASSIFIED ON CONSOLIDATED INCOME STATEMENT (B) 1'208'784 (764'195)
NET RESULT OF THE COMPREHENSIVE PERIOD (A) + (B) 987'631 (454'334)
- of which attributable to Group shareholders 987'631 (454'334)
- of which attributable to the minority shareholders - -
PRIMA INDUSTRIE 33
STATEMENT OF CHANGES IN CONSOLIDATED EQUITY
from January 1st, 2012 to June 30th, 2012
Values in Euro 31/12/11
Effects deriving from
the application of
amended IAS19
01/01/12
Change of
consolidation
area
Capital increase
Allocation of
prior year
profits
Distribution of
dividends to
stakeholders
Net Result Other
movements30/06/2012
Capital stock 21'601'740 - 21'601'740 - 4'112 - - - - 21'605'852
Additional paid-in capital 46'451'069 - 46'451'069 - 9'869 - - - - 46'460'938
Legal reserve 4'320'069 - 4'320'069 - - - - - - 4'320'069
Capital increase - expenses (1'286'154) - (1'286'154) - - - - - - (1'286'154)
Stock option reserve 1'295'506 - 1'295'506 - - - - - - 1'295'506
Change in the FV of hedging derivatives (5'550'334) - (5'550'334) - - - - (260'891) - (5'811'225)
Other reserves 13'416'095 - 13'416'095 - - (1'482'668) - - - 11'933'427
Currency translation reserve 1'331'310 - 1'331'310 - - - - (503'304) - 828'006
Retained earnings (3'390'665) (206'363) (3'597'028) - - 3'415'327 - - - (181'701)
Net result 1'932'659 - 1'932'659 - - (1'932'659) - 309'861 - 309'861
Stockholders' equity of the Group 80'121'295 (206'363) 79'914'932 - 13'981 - - (454'334) - 79'474'579
Minority interest - - - - - - - - - -
NET EQUITY 80'121'295 (206'363) 79'914'932 - 13'981 - - (454'334) - 79'474'579
from January 1st, 2013 to June 30th, 2013
Values in Euro 31/12/12
Effects deriving from
the application of
amended IAS19
01/01/13
Change of
consolidation
area
Capital increase
Allocation of
prior year
profits
Distribution of
dividends to
stakeholders
Net ResultOther
movements30/06/2013
Capital stock 21'606'553 - 21'606'553 - 31'070 - - - - 21'637'623
Subscrubed Capital Unpaid (1'785) - (1'785) - 357 - - - - (1'428)
Additional paid-in capital 46'462'619 - 46'462'619 - 74'568 - - - - 46'537'187
Legal reserve 4'320'069 - 4'320'069 - - 1'241 - - - 4'321'310
Capital increase - expenses (1'286'154) - (1'286'154) - - - - - - (1'286'154)
Stock option reserve 1'295'506 - 1'295'506 - - - - - - 1'295'506
Change in the FV of hedging derivatives (5'187'680) - (5'187'680) - - - - 1'160'454 - (4'027'226)
Other reserves 11'933'427 - 11'933'427 - - 1'891'177 - - - 13'824'604
Currency translation reserve (524'506) - (524'506) - - - - 48'330 - (476'176)
Retained earnings 24'662 (395'438) (370'776) - - 3'414'195 - - - 3'043'419
Net result 5'306'613 - 5'306'613 - - (5'306'613) - (221'153) - (221'153)
Stockholders' equity of the Group 83'949'324 (395'438) 83'553'886 - 105'995 - - 987'631 - 84'647'512
Minority interest - - - - - - - - - -
NET EQUITY 83'949'324 (395'438) 83'553'886 - 105'995 - - 987'631 - 84'647'512
PRIMA INDUSTRIE 34
CONSOLIDATED CASH FLOW STATEMENT
VALUES IN EURO 30/06/2013 30/06/2012
Net result (221'153) 309'861
Adjustments (sub-total) (3'027'901) 7'450'969
Depreciation and impairment 5'920'983 5'533'416
Net change in deferred tax assets and liabilities (240'344) (488'422)
Change in employee benefits 73'688 (28'660)
Change in inventories (6'393'045) (15'839'129)
Change in trade receivables (572'381) 22'028'694
Change in trade payables and advances 3'053'244 (5'093'717)
Net change in other receivables/payables and other assets/liabilities (4'870'046) 1'338'787
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES (A) (3'249'054) 7'760'830
Cash flow from investments
Acquisition of tangible fixed assets (*) (1'168'694) (1'767'844)
Acquisition of intangible fixed assets (177'048) (724'113)
Capitalization of development costs (3'911'108) (2'814'855)
Net disposal of fixed assets and investment properties (*) 102'493 21'772
Sale price of 10% SUP JV investment 2'424'212 -
Liquidation of SNK JV investment 77'780 -
Net result of JV investments (**) (11'486) (844'403)
Purchase/capital increase of other investments (214'014) 84'477
Devaluation of other investments 487'428 -
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES (B) (2'390'437) (6'044'966)
Cash flow from financing activities
Change in other financial assets/liabilities and other minor items (**) 4'014'200 552'657
Increases in loans and borrowings (including bank overdrafts) 3'924'088 666'953
Repayment of loans and borrowings (including bank overdrafts) (8'808'427) (10'594'850)
Increases/(repayments) in financial lease liabilities 104'182 40'768
Capital increase 105'995 13'981
Other changes (**) 48'330 719'389
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES (C) (611'632) (8'601'102)
Net change in cash and equivalents (D=A+B+C) (6'251'123) (6'885'238)
Cash and equivalents beginning of period (E) 24'458'666 25'179'041
Cash and equivalents end of period (F=D+E) 18'207'543 18'293'803
Additional information to the Consolidated cash-flow statement 30/06/2013 30/06/2012
Values in Euro
Income taxes (799'690) (1'676'148)
Financial Income 208'202 53'094
Financial costs (4'298'582) (4'437'305)
(*) included assets held for sale
(**) riclassification compared with June 30, 2012
PRIMA INDUSTRIE 35
CONSOLIDATED BALANCE SHEET PURSUANT TO CONSOB N. 15519 OF 27/07/2006
01/01/2012 Values in Euro Notes 30/06/2013of which related
parties31/12/2012
of which related
parties
24'472'946 Property, plant and equipment 6.1 24'068'253 - 24'343'935 -
152'629'950 Intangible assets 6.2 151'015'377 - 151'395'283 -
8'961'044 Investments accounted for using the equity method - - - -
1'076'998 Other investments 6.3 293'735 - 567'149 -
- Non current financial assets 6.4 15'000 - 83'700 -
6'648'479 Deferred tax assets 6.5 7'655'745 - 6'605'259 -
25'518 Other non current assets 6.8 24'588 - 25'183 -
193'814'935 NON CURRENT ASSETS 183'072'698 - 183'020'509 -
- -
84'249'605 Inventories 6.6 87'476'813 - 81'083'768 -
88'282'812 Trade receivables 6.7 71'274'803 - 70'702'422 -
6'406'214 Other receivables 6.8 9'517'414 - 7'516'732 -
5'592'470 Current tax receivables 6.9 7'004'236 - 3'839'898 -
- Derivatives 6.10 7'623 - 69'655 -
528'637 Financial assets 6.10 684'846 - 4'671'135 -
25'179'041 Cash and cash equivalents 6.10 18'207'543 - 24'458'666 -
210'238'779 CURRENT ASSETS 194'173'278 - 192'342'276 - 0 - -
1'012'201 ASSETS HELD FOR SALE 6.11 1'669'816 - 4'129'852 - 0 - -
405'065'915 TOTAL ASSETS 378'915'792 - 379'492'637 -
- -
21'601'740 Capital stock 6.12 21'637'623 - 21'606'553 -
4'320'069 Legal reserve 6.12 4'321'310 - 4'320'069 -
54'326'182 Other capital reserves 6.12 56'342'489 - 53'215'933 -
1'331'310 Currency translation reserve 6.12 (476'176) - (524'506) -
(3'597'028) Retained earnings 6.12 3'043'419 - (370'776) -
1'932'659 Net result 6.12 (221'153) - 5'306'613 -
79'914'932 Total Stockholders' equity of the Group 84'647'512 - 83'553'886 -
Minority interest - - - -
TOTAL STOCKHOLDERS' EQUITY 84'647'512 - 83'553'886 -
- -
102'350'641 Interest-bearing loans and borrowings 6.10 88'045'577 - 91'702'909 -
7'077'491 Employee benefit liabilities 6.13 7'702'990 - 7'629'302 -
9'737'709 Deferred tax liabilities 6.14 10'106'654 - 9'296'512 -
124'009 Provisions 6.15 126'353 - 133'403 -
7'611'171 Derivatives 6.10 6'026'805 - 7'262'196 -
126'901'021 NON CURRENT LIABILITIES 112'008'379 - 116'024'322 -
- -
79'797'117 Trade payables 6.16 75'862'685 - 72'403'779 -
32'355'143 Advance payments 6.16 16'586'229 - 16'991'891 -
17'539'790 Other payables 6.16 17'017'295 193'801 17'665'682 592'474
52'031'067 Interest-bearing loans and borrowings 6.10 55'417'110 - 56'513'455 -
6'404'295 Current tax payables 6.17 5'153'464 - 4'909'673 -
10'022'786 Provisions 6.15 12'135'974 - 11'429'949 -
99'764 Derivatives 6.10 87'144 - - -
198'249'962 CURRENT LIABILITIES 182'259'901 - 179'914'429 - - -
405'065'915 TOTAL STOCKHOLDERS' EQUITY AND LIABILITIES 378'915'792 - 379'492'637 -
PRIMA INDUSTRIE 36
CONSOLIDATED INCOME STATEMENT PURSUANT TO CONSOB N. 15519 OF 27/07/2006
Values in Euro Notes 30/06/2013of which related
parties30/06/2012
of which related
parties
Net revenues 6.18 161'945'354 - 163'524'879 903'075
Other income 6.19 2'396'144 - 1'897'115 -
Change in inventories of finished goods and WIP 4'435'735 - 9'149'450 -
Increases in fixed assets for internal work 6.20 4'090'135 - 3'020'226 -
Use of raw materials, consumables, supplies and goods (76'903'124) - (80'785'597) -
Personnel cost 6.21 (46'230'532) (236'737) (45'827'889) (272'946)
Depreciation 6.22 (5'851'983) - (5'341'217) -
Impairment 6.22 (69'000) - (192'199) -
Other operating expenses 6.23 (38'380'033) (318'953) (39'759'414) (523'729)
OPERATING PROFIT 5'432'696 - 5'685'354 -
of which: non recurring items 525'899 - (724'603) -
- -
Financial income 6.24 208'202 - 53'094 -
Financial expenses 6.24 (4'298'582) - (4'437'305) -
Net exchange differences 6.24 (287'837) - (159'537) -
Net result of investments not fully consolidated 6.25 (475'942) - 844'403 844'403
RESULT BEFORE TAXES 578'537 - 1'986'009 -
of which: non recurring items 38'472 - 14'109 -
- -
Taxes 6.26 (799'690) - (1'676'148) -
NET RESULT (221'153) - 309'861 -
- Attributable to Group shareholders (221'153) - 309'861 -
- Attributable to minority shareholders - - - -
RESULT PER SHARE - BASIC (in euro) 6.27 (0,03) - 0,04 -
RESULT PER SHARE - DILUTED (in euro) 6.27 (0,03) - 0,03 -
PRIMA INDUSTRIE 37
CONSOLIDATED CASH FLOW STATEMENT PURSUANT TO CONSOB N. 15519 DEL 27/07/2006
VALUES IN EURO 30/06/2013of which related
parties30/06/2012
of which related
parties
Net result (221'153) - 309'861 -
Adjustments (sub-total) (3'027'901) - 7'450'969 -
-
Depreciation and impairment 5'920'983 - 5'533'416 -
Net change in deferred tax assets and liabilities (240'344) - (488'422) -
Change in employee benefits 73'688 - (28'660) -
Change in inventories (6'393'045) - (15'839'129) -
Change in trade receivables (572'381) - 22'028'694 307'168
Change in trade payables and advances 3'053'244 - (5'093'717) -
Net change in other receivables/payables and other assets/liabilities (4'870'046) (398'673) 1'338'787 (158'383)
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES (A) (3'249'054) 7'760'830
Cash flow from investments
Acquisition of tangible fixed assets (*) (1'168'694) - (1'767'844) -
Acquisition of intangible fixed assets (177'048) - (724'113) -
Capitalization of development costs (3'911'108) - (2'814'855) -
Net disposal of fixed assets and investment properties (*) 102'493 - 21'772 -
Sale price of 10% SUP JV investment 2'424'212 - - -
Liquidation of SNK JV investment 77'780 - - -
Net result of JV investments (**) (11'486) - (844'403) (844'403)
Purchase/capital increase of other investments (214'014) - 84'477 99'860
Devaluation of other investments 487'428 - - -
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES (B) (2'390'437) (6'044'966)
Cash flow from financing activities
Change in other financial assets/liabilities and other minor items (**) 4'014'200 - 552'657 -
Increases in loans and borrowings (including bank overdrafts) 3'924'088 - 666'953 -
Repayment of loans and borrowings (including bank overdrafts) (8'808'427) - (10'594'850) -
Increases/(repayments) in financial lease liabilities 104'182 - 40'768 -
Capital increase 105'995 - 13'981 -
Other changes (**) 48'330 - 719'389 -
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES (C) (611'632) (8'601'102)
Net change in cash and equivalents (D=A+B+C) (6'251'123) (6'885'238)
Cash and equivalents beginning of period (E) 24'458'666 25'179'041
Cash and equivalents end of period (F=D+E) 18'207'543 18'293'803
(*) included assets held for sale
(**) riclassification compared with June 30, 2012
PRIMA INDUSTRIE 38
CHAPTER 6.
EXPLANATORY NOTES
PRIMA INDUSTRIE 39
CHAPTER 6. EXPLANATORY NOTES
FORM E CONTENT
The abbreviated consolidated balance sheet of the PRIMA INDUSTRIE Group on 30/06/2013 has
been drawn up on the assumption of the company continuing trading (for greater detail see the
note "Accounting principles") and in regard to the International Financial Reporting Standards
issued by the International Accounting Standards Board and recognized by the European Union
(defined as "IFRS"), as well as the legislative and regulatory directions in force in Italy (with
particular reference to Leg. Decree 58/1998 and subsequent amendments, as well as the issuer's
Regulation issued by CONSOB). "IFRS" Is also meant as the International Accounting Standard
(IAS) still in force, as well as all the interpretive documents issued by the International Financial
Reporting Interpretations Committee ("IFRIC") previously called the Standing Interpretations
Committee ("SIC").
The abbreviated consolidated balance sheet on 30/06/2013 has been laid out in abbreviated
form, in conformity with IAS 34 "Interim balances", and does not include therefore all the
information required in the annual balance sheet and must be read together with the annual
balance sheet prepared for the closed financial year at 31/12/2012, to which attention is drawn
for greater detail.
The abbreviated consolidated balance on 30/06/2013 of the PRIMA INDUSTRIE Group is presented
in Euro which is also the currency of the economies in which the Group mainly operates.
The foreign subsidiaries are included in the abbreviated consolidated balance sheet on
30/06/2013 according to the principles described in the "accounting principle" Note of the
consolidated balance on 31/12/2012, to which attention is drawn.
For purposes of comparison, the balance sheet data on 31/12/2012 have been presented as well
as the data of the profit and loss account and the financial statement relating to 30/06/2012
with the movements of net assets of the first six months of 2012 as well, as required by IAS 1. It
should be noted once again that, following the retrospective application on 01/01/2013 of the
amendment to IAS 19, the data relating to 2012 reported for the purpose of comparison, have
been restated, where appropriate, as required by IAS 1.
ACCOUNTING PRINCIPLES
On-going concern
The abbreviated consolidated balance sheet at 30/06/2013 has been set out on the assumption
of the company continuing trading in that it is reasonably expected that PRIMA INDUSTRIE will
continue with its operational activities in the foreseeable future.
Accounting criteria and principles of consolidation
The accounting criteria and principles of consolidation adopted for setting out the abbreviated
consolidated balance sheet at 30/06/2013 are compatible with those used for the consolidated
annual balance sheet at 31/12/2012, to which reference is made subject to the new
standards/interpretations adopted by the Group starting from January 1, 2013, as well as the
adjustments required by the nature of the interim findings. In this regard it is noted that the
IASB issued an amendment to "IAS 19 - Benefits to Employees" which will be applicable
retrospectively from the financial year beginning on 01/01/2013. The amendment modifies the
rules for the recognition of defined benefit plans and termination benefits. The main changes
concern the recognition in the asset - financial situation of the surplus or deficit of the plan, the
PRIMA INDUSTRIE 40
introduction net financial charge and the classification of net finance charges. In accordance
with the transition rules in paragraph 173 of IAS 19, the Group has applied this amendment to
IAS 19 retrospectively starting from 01/01/2013, adjusting, where necessary, the comparative
data for the year 2012, as if the amendment had always been applied.
Accounting principles , amendments and interpretation applied from the 1st January 2013
Starts from 01/01/2013 there were issued from IASB new accounting principles and
interpretation; these variances are commented here below.
� On 12/05/2011, the IASB issued the standard "IFRS 13 - Fair Value Measurement", which
clarifies how to measure fair value for financial reporting purposes and applies to all IFRS
that require or permit the measurement of fair value or the presentation of information
based on this method. The standard must be applied prospectively from 01/01/2013. Its
adoption had no impact in the first semester of 2013.
� On 16/06/2011, the IASB issued an amendment to "IAS 1 - Presentation of Financial
Statements", requiring companies to group together items within Other comprehensive
income / (loss), depending on whether or not they can subsequently be reclassified to the
income statement. The amendment is applicable for annual periods beginning on or after
01/07/2012. Its adoption had no impact in the first semester of 2013.
� On 16/06/2011, the IASB issued an amendment to "IAS 19 - Employee benefits", that
modifies the rules for the recognition of defined benefit plans and ‘ terminations benefits’.
The main variances concern the recognition in the balance sheet - financial surplus or
deficit of the plan, the introduction of the financial equity and the classification of net
financial burden:
- the recognition of the deficit or surplus of the plan: the amendment removes the
option to defer actuarial gains and losses using the "corridor method" and it
requires the recognition directly in Other comprehensive earnings (loss) and
recognized in the income economic costs related to past service;
- net financial burden: the burden of financial debt is made up by financial burdens
calculated on the present value of the liabilities for defined benefit plans, financial
gains from the valuation of plan assets and the burdens or the financial income
arising from any limits on the recognition of the surplus in the plan. The cost of
debt is calculated using all of these components to the discount rate used for the
measurement of the defined benefit plans at the beginning of the period;
- the classification of the net financial burden: Net financial burden must be
recognized into the income (expense) in the income statement.
In accordance with what it is foreseen from IAS 19, the Prima Industrie Group has applied the
transaction rules retrospectively starting from the 1st of January, 2013. Following this
amendment the opening balance at 01/01/2013 have been restated.
The Balance Sheet and Income Statement effect are related to the companies PRIMA INDUSTRIE
SpA, PRIMA ELECTRO SpA, FINN-POWER ITALIA and PRIMA POWER GMBH. Comparing with the
data as at 31st December, 2012 this change has generated a decrease of Equity on the 1st of
January, 2012 and on the 31st of December, 2012 respectively of 206 thousand euro and 395
thousand euro.
PRIMA INDUSTRIE 41
� On 16/12/2011, the IASB issued amendments to '"IFRS 7 - Financial Instruments:
Disclosures". The amendment requires information on the effects or potential effects of
contracts with clauses constituted by financial assets and financial liabilities on the
balance sheet. The amendments must be applied for annual periods beginning on or after
01/01/2013 and interim periods after that date. Its adoption had no impact in the first
semester of 2013.
� The IASB has issued a number of amendments to IFRS ("Improvements 2012") which are
applicable retrospectively from 01/01/2013. These amendments did not have any effect in
the first semester 2013 and it consisted of:
� IAS 1 - Presentation of Financial Statements;
� IAS 16 - Property, plant and equipment;
� IAS 32 - Financial Instruments: Presentation;
� IAS 34 - Interim Financial Reporting.
Accounting standards and amendments not yet effective and not early adopted by the Group
With reference to IFRS 10, 11 and 12, discussed below, the IASB requires the application
retrospectively from 01/01/2013. The competent bodies of the European Union completed the
endorsement process of these principles postponing the date of application of the same at
01/01/2014, allowing, however, an early adoption starting from 01/01/2013.
On 12/05/2011, the IASB issued IFRS 10 - Consolidated Financial Statements (as subsequently
amended on 28/06/2012), which replaces the SIC-12 and parts of the IAS 27 and which governs
the accounting treatment of investments in the separate financial statements. The new standard
moves on existing principles by identifying a new control model for all entities including vehicles
and also provides a guide for determining the existence of control where this is difficult to asses
On 12/05/2011, the IASB issued IFRS 11 - Agreements under joint control (as subsequently
amended 28/06/2012), which replace IAS 31 and SIC-13. The new standard provides the criteria
for the identification of joint arrangements based on the rights and on the obligations of the
arrangement, rather than on the legal form and it requires , as a single method to account for
interests in jointly controlled entities in the consolidated financial statements, the equity
method. Following the issuance of the standard, IAS 28 - Investments in Associates it has been
amended to include in its scope of application, the effective date of the standard, for
investments in joint ventures.
On 12/05/2011, the IASB issued IFRS 12 - Disclosure of Interests in Other Entities (as
subsequently amended on 28th June 2012), which is a new and comprehensive standard on
disclosure requirements for all forms of participation , including those in subsidiaries, joint
ventures arrangements, associates, special purpose entities and other unconsolidated structured
entities. The effects of the adoption of the new standard are limited to the information relating
to investments in other companies to be provided in the Notes on the annual consolidated
financial statements.
On 16/12/2011, the IASB issued amendments to IAS 32, to be applied retrospectively for annual
periods beginning on or after 01/01/2014, to clarify the application of certain criteria for the
compensation of assets and financial liabilities in IAS 32.
PRIMA INDUSTRIE 42
At the date of this Interim Financial Report, the competent bodies of the European Union had
not yet completed the endorsement process necessary for the adoption of the following
accounting standards and amendments:
� On 12/11/2009, the IASB published IFRS 9 - Financial Instruments, the same principle has
been subsequently amended. The principle, which must be applied by 01/01/2015
retrospectively, is the first part of a phased process that aims to replace IAS 39 and
introduces new requirements for classifying and measuring financial assets and financial
liabilities
� On 20/05/2013, the IASB issued IFRIC 21 - Tributes, an interpretation of IAS 37 provides
guidance on when an entity should recognize a liability for the payment of taxes imposed
by the government, with the exception of those already covered by other standards (es.
IAS 12 - income Taxes). The interpretation clarifies that the obligating event that gives the
birth to a liability for the payment of the tax, it is the activity described in the relevant
legislation that led to the payment of the same. The IFRIC 21 is effective for annual
periods beginning from 01/01/2014.
� On 29/05/2013, the IASB issued an amendment to IAS 36 - Information on the recoverable
value of non-financing activity, which regulates the information to be provided on the
recoverable value of assets that have suffered impairment in value, if such amount is
based on fair value less costs of sales The amendments shall be applied retrospectively for
annual periods beginning from 01/01/2014. Earlier the application is permitted for periods
in which the entity has applied IFRS 13.
� On 27/06/2013, the IASB issued amendments to IAS 39 for minor entitled "Novation of
derivatives and continuity hedge accounting". The changes allow to continue the 'hedge
accounting if a derivative financial instrument designated as a hedging instrument, should
be delegated following the application of the law or of the regulations in order to replace
the original counterpart to ensure the successful completion of the obligation recruited
and if certain conditions are fulfilled. The same change will also be included in IFRS 9 -
Financial Instruments. These amendments are to be applied retrospectively for annual
periods beginning on 01/01/2014.
Use of accounting estimates
The drawing up of an interim balance sheet requires the carrying out of estimates and
assumptions which have effect on the values of revenues, costs, assets and liabilities of the
balance sheet and on the information report relating to the potential assets and liabilities on the
date of the interim balance sheet. If in the future, such estimates and assumptions which are
based on the best evaluation by management, should differ through effective circumstances,
they will be modified in an appropriate manner in the period in which the circumstance
themselves vary. In particular, with regard to the abbreviated consolidated balance sheet of
30/06/2013, the taxes on income for the period of the individual consolidated companies are
determined on the basis of the best estimate possible in relation to the available information,
and on a reasonable forecast of the progress of the financial year up to the end of the tax
period.
PRIMA INDUSTRIE 43
FINANCIAL STATEMENTS
With regard to the financial statements, the group has adopted the choice of using the
statements described below:
� with regards to the Consolidated balance sheet, the scheme which presents the assets and
liabilities distinguishing them between "current" (or in other words able to be
liquidated/payable within 12 months) and "non-current" (or in other words able to be
liquidated/payable beyond 12 months);
� with regards to the consolidated income statement, the scheme adopted foresees the
distribution of costs in kind; the statement of comprehensive income includes, in addition
to the profit for the period, as a consolidated income statement, the other variations of
the movement of net assets different from those with the shareholders;
� with regards to the statement of changes in consolidated equity, the scheme adopted to
reconcile the opening and closing of each equity item both for the current period and for
the previous period;
� with regards to the consolidated cash flow statements the so-called "indirect" method has
been chosen, which determines the net financial flow from operating activities by
adjusting the profit and loss for the effects;
� non-monetary elements such as depreciation, devaluations, unrealized profits and
losses on related companies;
� of the variation of the inventory, the receivables and payables generated by the
operational activity;
� of the other elements whose financial fluctuations are generated by the activities
of investment and financing.
This Interim financial Report was authorized for publication by the Board of Directors on
28/08/2013.
PRIMA INDUSTRIE 44
EXPLANATORY NOTES
The data shown in the explanatory notes, if not shown otherwise, are expressed in Euro.
NOTE 6.1 – PROPERTY PLANT AND EQUIPMENT
The property plant and equipment on 30/06/2013 are equal to 24,068 thousand euro, a
reduction of 276 thousand euro compared with 31/12/2012.
For more details on the subject, see the table below.
NOTE 6.2 – INTANGIBLE ASSETS
The intangible assets on 30/06/2013 are equal to 151,015 thousand euro, a reduction of 380
thousand Euro compared with 31/12/2012.
For more details on the subject, see the table below.
The most significant item is represented by Goodwill, which on 30/06/2013 is equal to 102,700
thousand euro. All goodwill written into the balance sheet refers to the larger value paid with
respect to the fair value of the assets acquired.
The table below shows the book value of the goodwill allocated to each of the units generating
financial flow
Property, Plant & Equipment Land and
buildings
Plants and
Machinery
Industrial and
Commercial
Equipment
Other Tangible
fixed assets
Constructiosn
in progress TOTAL
Net value as of December 31st, 2012 17'263'455 2'123'655 1'856'009 2'454'004 646'811 24'343'935
Movements of 1st Half 2013
Increases - 176'553 266'656 633'484 92'001 1'168'694
Disinvestments - (2'177'022) (15'652) (27'070) - (2'219'744)
Use of Depreciation fund - 2'082'478 9'212 25'561 - 2'117'251
Depreciation (275'479) (252'792) (358'627) (446'968) - (1'333'866)
Tangible fixed assets reclassifications - 16'750 27'765 10'088 (54'603) -
Difference on exchange rate 11'163 (663) 3'136 (21'849) 196 (8'017)
Net value as of June 30, 2013 16'999'139 1'968'959 1'788'499 2'627'250 684'405 24'068'253
Intangible assets Goodwill Development cost Other int. assets TOTAL
Net value as of December 31, 2012 102'679'896 22'049'397 26'665'990 151'395'283
Movements of 1st Half 2013
Increases/(decreases) - 3'911'108 177'048 4'088'156
Tangible fixed assets reclassifications - - - -
Depreciation - (2'515'694) (2'002'423) (4'518'117)
Impairment - - - -
Difference on exchange rates 20'152 28'620 1'284 50'056
Net value as of June 30, 2013 102'700'048 23'473'430 24'841'899 151'015'377
CASH GENERATING UNITBOOK VALUE
GOODWILL June 30, 2013
BOOK VALUE
GOODWILL Dec. 31, 2012
PRIMA POWER 97'502 97'489
OSAI (Service) 4'125 4'125
PRIMA ELECTRO NORTH AMERICA 882 875
MLTA 154 154
OSAI UK 37 37
TOTAL 102'700 102'680
PRIMA INDUSTRIE 45
Goodwill (being an asset with an undefined life) is not subject to depreciation and is subject to
verification at least annually of the reduction of value (impairment test). At 31/12/2012 the
Group carried out the impairment test on the value of the main elements of goodwill (PRIMA
POWER, OSAI-Service and PRIMA ELECTRO NORTH AMERICA), for which attention is drawn to the
Consolidated Financial Statements at 31/12/2012. Regarding the above mentioned goodwill at
30 June 2013,there are no indicators of loss in value have appeared compared with the balance
sheet closed on 31/12/2012, it was not considered necessary to update the related impairment
tests.
NOTE 6.3 – OTHER INVESTMENTS
The value of the other investments at 30/06/2013 amounts at 294 thousand euro and during the
half year they were changed as
� net decrease of 323 thousand euro of the investment held by PRIMA ELECTRO SpA in EPS,
the change is the result of a capital increase following the conversion of a bond issued by
the EPS and signed by PRIMA ELECTRO SpA for 157 thousand euro and the depreciation of
the investment for 480 thousand euro. This investment is equal to 2,36%.
� net increase of 38 thousand euro of the stake hold by PRIMA ELECTRO SpA in Caretek Srl,
the change is the result of a capital increase following the conversion of a financial
receivable PRIMA ELECTRO SpA for 45 thousand euro and the devaluation of the investment
7 thousand euro. This investment is equal to 21,57%.
� increase of 11 thousand euro for new investments held by the Parent Company in the
company Lamiera Servizi Srl, this investment is held by PRIMA INDUSTRIE SpA to 19%.
At 30/06/2013 the other investments are:
� EPS (97 thousand euro);
� Caretek Srl (81 thousand euro);
� Fimecc OY (50 thousand euro);
� Härmämedi Oy (25 thousand euro)
� Lamiera Servizi Srl (11 thousand euro)
� Other minor investments (30 thousand euro).
The investment in Fimecc OY and Härmämedi Oy are detained by FINN-POWER OY and they are
equal respectively to 2,4% and 8,33%
NOTE 6.4 – NON CURRENT FINANCIAL ASSETS
This item at 30/06/2013 amounted to 15 thousand euro and refers to a loan provided by PRIMA
ELECTRO SpA to Caretek.
NOTE 6.5 – DEFERRED TAX ASSETS
The deferred tax assets are equal to 7,656 thousand euro, showing an increase respect the
previous financial year by 1,051 thousand euro (6,605 thousand euro at 31/12/2012).This activity
has been made up by differences over the inventories, over provisions and over trade
receivables. With regard to the recoverability of these taxes should be noted that the Parent
Company and PRIMA ELECTRO historically realized positive taxable income, both IRES, IRAP and
PRIMA INDUSTRIE 46
that foresee the achievement of positive taxable income in the years after. The assessment of
the recoverability of deferred tax assets takes into account the expected profitability in future
years and it is supported by the fact that the tax assets relate primarily to asset adjustment and
provisions for risks and charges, for which there is no expiration. The deferred tax assets on tax
losses carried forward are recognized in so far that it is probable that future taxable profit will
be available against which they can be recovered. Considering what we have illustrated there
are no elements which would alter the previous assessments about the recoverability of deferred
tax assets.
NOTE 6.6 – INVENTORIES
The following table shows the composition of the inventories at 30/06/2013 and at 31/12/2012.
At 30/06/2013 the inventories is equal to 87,477 thousand euro, at net of inventories losses by
an amount of 5,796 thousand euro. The net value of inventories at 30/06/2013 show an increase
equal to 6,393 thousand euro than 31/12/2012.Such increase is linked by the necessity of the
second part of the year.
NOTE 6.7 – TRADE RECEIVABLES
The trade receivables at 30/06/2013 amounts to 71,275 thousand euro and respect to the
previous financial year we record an increase of 572 thousand euro.
The bad debts reflects management's estimate of the expected losses of the Group
NOTE 6.8 – OTHER RECEIVABLES
At 30/06/2013 other receivables are equal to 9,517 thousand euro and they are increased
respect to the 31/12/2012 by 2,000 thousand euro and they are divided in the way presented in
the chart below.
Other non-current receivables results to be equal to 25 thousand euro.
INVENTORIES June 30, 2013 December 31, 2012
Raw materials 27'004'776 24'859'168
Semi-finished goods 17'838'481 12'864'798
Finished products 48'429'506 49'128'450
(Inventories provision) (5'795'951) (5'768'648)
TOTAL 87'476'813 81'083'768
Trade Receivables 30/06/13 31/12/12
Receivables from clients 74'847'645 74'827'697
Bad Debt (3'572'842) (4'125'275)
Total Trade Receivables 71'274'803 70'702'422
Other Receivables June 30, 2013 Dec. 31, 2012
Contribution to be received for R&D projects 3'413'300 2'482'773
Accrued income and prepayment expenses 2'918'114 2'887'901
Advances payments to suppliers 2'603'124 1'386'119
Advances to employees 320'786 292'220
Other receivables 262'090 467'719
TOTAL 9'517'414 7'516'732
PRIMA INDUSTRIE 47
NOTE 6.9 – CURRENT TAX RECEIVABLES
It amounts to 7,004 thousand euro against the 3,840 thousand euro at 31/12/2012.The tax asset
are composed by VAT for 5,045 thousand euro (at 31/12/2012 equals to 2,956 thousand euro),a
receivable for 1,048 thousand euro following the introduction of claims for reimbursement IRES
(IRAP deduction for IRES during 2007-2011),in 2013 February, from advance of direct taxes for
373 thousand euro (at 3/12/2012 equals to 752 thousand euro),from a receivable subscripted by
the Us and German subsidiaries over losses of the previous financial years for 57 thousand euro
(at 31/12/2012 equals to 105 thousand euro) and from other receivables of minor tax assets for
481 thousand euro, almost exclusively withholding taxes (at 31/12/2012 for 27 thousand euro).
With reference to the receivables on tax losses in the U.S. and in Germany it should be noted
that both the American and German tax law provide that a company, if it has a loss in the
financial year, can request a reimbursement (full or partial) of taxes paid in previous years (five
financial years for U.S. law). In the face of such a request it is not necessary to create positive
fiscal results in the future, it is only necessary to send the claim for reimbursement to the tax
authorities. Therefore, this item was included in the current tax receivables.
NOTE 6.10 – NET FINANCIAL POSITION
On 30/06/2013, the net financial position of the Group was negative at 130,677 thousand Euro, a
reduction of 4,398 thousand Euro compared with 31/12/2012 (negative at 126,279 thousand
Euro). For a better understanding of the variation in the net financial position achieved during
the first six months of 2013, refer to the Consolidated Cash Flow Statement of the period.
As required by the Consob communication No. DEM/6064293 of 28/07/2006, the net financial
debt at 30/06/2013 and 31/12/2012 is shown in the following table, determined with the
indicated criteria in the CESR (Committee of European Securities Regulators) Recommendations
of 10/02/2005 "Recommendations for the uniform activation of the European Commission
Regulation on Information Sheets" and quoted by Consob itself.
LIQUIDITY
For more detail on the related liquid availability, see the Consolidated Financial Report.
June 30, 2013 Dec. 31, 2012 Variations
A CASH 18'208 24'459 (6'251)
B OTHER CASH AND CASH EQUIVALENTS - - -
C SECURITIES HELD FOR TRADING - - -
D LIQUIDITY (A+B+C) 18'208 24'459 (6'251)
E CURRENT FINANCIAL RECEIVABLES 692 4'740 (4'048)
F CURRENT BANK PAYABLES 15'026 15'981 (955)
G CURRENT PORTION OF NON-CURRENT INDEBTEDNESS 39'679 39'574 105
H OTHER CURRENT FINANCIAL PAYABLES 799 958 (159)
I CURRENT FINANCIAL INDEBTEDNESS (F+G+H) 55'504 56'513 (1'009)
J NET CURRENT FINANCIAL INDEBTEDNESS (I-D-E) 36'604 27'314 9'290
K NON-CURRENT BANK PAYABLES 90'097 96'471 (6'374)
L BOND - - -
M OTHER NON-CURRENT FINANCIAL PAYABLES 3'976 2'494 1'482
N NON-CURRENT FINANCIAL INDEBTEDNESS 94'073 98'965 (4'892)
O NET FINANCIAL POSITION (J+N) 130'677 126'279 4'398
Values expressed in Euro thousand
PRIMA INDUSTRIE 48
CURRENT FINANCIAL RECEIVABLES
The Financial Receivables amounted to 692 thousand euro and refer to:
� The outstanding receivables from the majority shareholder WUHAN HUAGONG UNITY of the
JV Chinese SUP for the sale of the 30% of the investments held by PRIMA INDUSTRIE SpA in
JV Chinese for 685 thousand euro, this receivables is guaranteed by an escrow account.
� Hedging derivatives on the exchange rate risk (Currency Rate Swap) 7 thousand euro.
BANK INDEBTEDNESS
The main debt of the bank indebtedness is the FINPOLAR loan. This loan, which at 30/06/2013
amounted to 122,701 thousand euro, is composed:
� Tranche A: medium / long-term 20,941 thousand euro (expiring in February 2015 with half
year repayment in fixed capital payments);
� Tranche B: medium / long-term 63,332 thousand euro (expiring in February 2016 with a
"bullet" repayment at maturity);
� Tranche C1: medium / long-term 8,968 thousand euro (expiring in February 2015 with
repayment in semi-fixed principal payments);
� Tranche C2: line of credit for advancing on invoices (revolving) utilized at 30th June 2013
for 10,656 thousand euro (the line can be used for a maximum total amount of euro 12,200
thousand euro for working capital requirements of the Group);
� Tranche D: line of credit for cash of euro 17,860 thousand euro(maximum capital amount
of 20 million euro);
� at 30/06/2013 there are registered interest accrued and unpaid on all FINPOLAR loan
tranche of a total of 944 thousand euro.
The FINPOLAR loan is for 83,329 thousand euro with the expiring date of more than 12 months.
It should be noted that on 04/02/2013 the company has regularly paid the installment due on
the FINPOLAR loan relating to the share capital tranche A and C1 for 5,123 thousand euro, the
interest tranche A, B and D for 1,306 thousand euro and the differential of derivative for 1,039
thousand euro. In addition at the date of preparation of these financial statements, it is
regularly repaid the installment due on 05/08/2013 amounting for 6,752 thousand euro, divided
as follows:
� Capital tranche A and C1 for 5,123 thousand euro;
� Interest tranche A and B for 1,113 thousand euro;
� Differential on derivative for 516 thousand euro
The covenants measured on the consolidated financial statements at 30 June 2013 result to be
respected.
In the non current bank payables are included also other bank loans for 741 thousand euro and
the negative fair value of some derivatives (IRS - Interest Rate Swap) which amounted to 6,027
thousand euro. The main contracts are those stipulated by PRIMA INDUSTRIE SpA, to partially
hedge the risk of interest rate on the FINPOLAR loan. The effectiveness tests carried out on
hedging derivatives have underlined during 30/06/2013 a substantially effective report and
therefore, being respected also the other requirements of IAS 39, are accounted for adopting
the rule of hedge accounting. The financial instruments for which the test of effectiveness is not
performed, because of their characteristics, are accounted for by the imputation in the income
PRIMA INDUSTRIE 49
statement of the relative changes in fair value. In current bank payables (also considering the
current portion of the non-current indebtedness) are included the FINPOLAR loan for 39,372
thousand euro, bank overdrafts for 13,636 thousand euro, other bank loans for 1,610 thousand
euro and hedging derivatives on currency exchange risk (Currency Rate Swap) for 87 thousand
euro.
OTHER FINANCIAL PAYABLES
Other financial payables amounted to 4,775 thousand euro (of which 799 thousand are
current).Other financial payables include:
� Financial leasing payables equal to 2,857 thousands of euro (of which 579 thousand euro
current);
� other financial payables of 1,918 thousand euro (of which 220 thousand euro are current);
these payables mainly relate to facilitated ministry loans.
FINANCIAL INDICATORS (COVENANTS)
The FINPOLAR loan agreement requires compliance with a number of financial-economic
parameters (covenants) for the entire period of the same duration (up to 2016) and with variable
values in the different measurement periods.
It sets out below a table with an indication of the covenants currently in force for the period of
30/06/2013 and the following measurement.
MOVEMENTS OF BANK PAYABLES AND LOANS
Amounts payable to banks and the loans of PRIMA INDUSTRIE Group 30/06/2013 (not including
the fair value of derivatives) amounted to 143,463 thousand euro in the first half of 2013 were
changed as shown in the following table.
Net Financial Position/ consolidated Shareholders's Equity
ratio not more than:
1,8x at June 30, 2013
1,6x at December 31, 2013 and June 30, 2014
1,4x at December 31, 2014 and June 30, 2015
1,2x at December 31, 2015
2,5x at June 30, 2013
EBITDA/Consolidated Net Financial expenses ratio
not less than:
Net Financial Position/ consolidated EBITDA ratio
not more than:
5,5x at June 30, 2013
4,1x at December 31 , 2013 and June 30, 2014
3,0x at December 31, 2014 and June 30, 2015
2,75x at December 31, 2015
3,0x at December 31, 2013 and June 30, 2014
4,0x at December 31, 2014 and June 30, 2015
4,5x at December 31, 2015
PRIMA INDUSTRIE 50
NOTE 6.11 - ASSETS HELD FOR SALE
On 30/06/2013, the value of the assets held for sale destined for wind-up is equal to 1,670
thousand euro.
The investment in the JV SUP held by PRIMA INDUSTRIE SpA amounts to EUR 1,196 thousand,
during the first half of 2013 PRIMA INDUSTRIE SpA transferred to the majority shareholder
WUHAN Huagong UNITY an additional amount equal to 10% of its investments; at 30/06/2013
PRIMA INDUSTRIE SpA holds share of only 5%.
As already mentioned in the annual Consolidated Financial Statement Report at 31/12/2012,
PRIMA INDUSTRIE SpA had announced the intention to not renew the agreement with the joint
venture Japanese SNK; during the first half of 2013 the investment in SNK was totally liquidated.
In this asset there real estate units under construction are classified. They are owned by the
company FINN-POWER Srl located in Mantova Italy, during the first semester of 2013 they has
been undervalued in order to adequate them to their fair value.
NOTE 6.12 – EQUITY
The equity increased compared to the previous year of 1,094 thousand euro. This increase is the
result of the positive effects resulting from the fair value of hedging derivatives (1,161 thousand
euro), from the capital increase due to conversion of warrants (106 thousand euro) and the
adjustment of the reserve currency translation (48 thousand euro), and the negative impact
resulting from the loss for the period (221 thousand euro).
BANK PAYABLES AND LOANS Euro thousand
Bank Payables and loans - current portion (December 31, 2012) 56'513
Bank Paybales and loans - non-current portion (December 31, 2012) 91'703
TOTAL PAYABLES TO BANKS AND LOANS AS OF DECEMBER 31, 2012 148'216
Variation in the consolidation area -
Stipulation of loans and borrowings (including bank overdrafts) 3'924
Repayment of loans and borrowings e finanziamenti (including bank overdrafts) (8'808)
Stipulation/(repayments) of financial leasing 104
Exchange rate variation 27
BANK PAYABLES AND LOANS AS OF JUNE 30, 2013 143'463
of which:
Payables to banks and loans- current portion (June 30, 2013) 55'417
Payables to banks and loans - non-current portion (June 30, 2013) 88'046
TOTAL BANK PAYABLES AND LOANS AS OF JUNE 30, 2013 143'463
Asset held for sale SUP Investments SNK InvestmentsReal Property
Rivalta sul Mincio (MN)TOTAL
Value at December 31, 2012 3'503'352 83'500 543'000 4'129'852
Disinvestments (2'424'212) (77'780) - (2'501'992)
Surplus value 12'152 - - 12'152
Fair value adjustment - (666) - (666)
Currency adjustment 104'524 (5'054) - 99'470
Impairment - - (69'000) (69'000)
Value at June 30, 2013 1'195'816 - 474'000 1'669'816
PRIMA INDUSTRIE 51
NOTE 6.13 –EMPLOYEE BENEFITS LIABILITIES
The employees benefits liabilities includes: � the Severance Indemnity (TFR) recognized by Italian companies for employees;
� a fidelity premium recognized by the Parent Company and by PRIMA ELECTRO for their own
employees;
� a pension fund recognized by PRIMA POWER GMBH and PRIMA POWER FRANCE Sarl for their
employees.
The table below compares the items in question, noting that starting from 01/01/2013 the
amended IAS 19 enters into force, to be applied retroactively (for more details, please see the
methodological note in the previous paragraph "ACCOUNTING PRINCIPLES")
NOTE 6.14 –DEFERRED TAX LIABILITIES
The deferred tax liabilities for deferred taxes are equal to 10,107 thousand euro, an increase
compared with the previous financial year of 810 thousand euro. It is noted that this heading
includes also for deferred taxes liabilities on the trademark, on relationships with clients and
the Cologna Veneta real estate deriving from the company merger of the FINN-POWER Group
equal to 6,215 thousand Euro.
NOTE 6.15 – PROVISIONS
The provisions are equal to 12,262 thousand euro and are increasing respect to 31/12/2012 by
699 thousand euro. The most significant typology is that relating to Product warranty provisions.
The Warranty provisions is relative to the provision for the technical warranty interventions
over the products of the Group and it’s considered in relation with the warranty costs that
should be maintained. The non current provisions refer exclusively to the agents indemnity and
amount to 126 thousand euro. The current provisions refer mainly to the product’s warranty and
the completion in progress projects for an amount of 11.549 thousand euro.
The other provisions for liabilities are referred to a legal procedures and other disputes; these
provisions represent the best estimate from the management of the liabilities which have to be
countable with the refer to a legal procedures sorted during the ordinary operative activity in
front of retailer, clients, suppliers or public authority and also to legal procedures related to
disputes with ex employees.
Employees benefits liabilities December 31, 2012
Effects deriving from
the application of
amended IAS 19
December 31, 2012
restated
Severance indemnity fund 5'677'403 359'257 6'036'660
Fidelity premium 1'399'821 192'821 1'592'642
TOTAL 7'077'224 552'078 7'629'302
Employees benefits liabilities June 30, 2013 December 31, 2012
restated
Severance indemnity fund 6'024'793 6'036'660
Fidelity premium 1'678'197 1'592'642
TOTAL 7'702'990 7'629'302
PRIMA INDUSTRIE 52
NOTE 6.16 – TRADE PAYABLES, ADVANCE PAYMENTS AND OTHER PAYABLES
The value of these payables has increased compared with 31/12/2012 by 2,404 thousand Euro. It
is recalled that the advance from customer contains both the advances on orders relating to
machines which have not yet been delivered, as well as those generated by the application of
the IAS 18 accounting principle relating to machines already delivered, but not yet accepted by
the end customer and therefore not taken into revenue. The Other payables heading
encompasses social security payables, payables with employees, accrued expenses and deferred
income and other minor payables.
For more detail on the subject, see the table below.
NOTE 6.17 –CURRENT TAXE PAYABLES
On 30/06/2013 the current tax payables for the current taxes amount to 5,153 thousand euro,
an increase by 243 thousand euro respect the end of the previous financial year (4,910 thousand
euro on 31/12/2012).
NOTE 6.18 – NET REVENUES
The net revenues have been increased and commented on at chapter 3 of this document " On
Interim Report Management" in the paragraph "Revenues and Profitability".
NOTE 6.19 – OTHER INCOME
The other operational income amounts to 2,396 thousand euro and refers principally to research
and development grants received by public entities or following cooperation with other
industrial companies.
NOTE 6.20 – INCREASES IN FIXED ASSETS FOR INTERNAL WORK
The increases in fixed assets for internal work on 30/06/2013 amount to 4,090 thousand euro
and refer mainly to the capitalization of new project development activity (3,911 thousand
euro), of which the technical feasibility has been verified and the generation of probable future
economic benefits. The capitalized development activity has been carried out by the Parent
Company, by FINN-POWER OY, by FINN-POWER ITALIA, by PRIMA POWER LASERDYNE, by PRIMA
ELECTRO SpA, and by PRIMA ELECTRO NORTH AMERICA.
NOTE 6.21 – PERSONNEL COSTS
The personnel costs at 30/06/2013 are equal to 46,231 thousand euro and show an increase
compared with the corresponding period of the previous financial year of 403 thousand euro.
NOTE 6.22 – DEPRECIATION-IMPAIRMENT
The depreciation and the impairment at 30/06/2013 are equal to 5,921 thousand euro (of which
4,518 thousand euro are related to intangible fixed assets). It is opportune to highlight that the
depreciation relating to the trademark and relationships with clients ("customers list") amount to
a comprehensive 1,504 thousand euro, while those relating to development costs are equal to
Trade payables, advances and other payables June 30 , 2013 December 31, 2012
Trade payables 75'862'685 72'403'779
Advances payments 16'586'229 16'991'891
Other payables 17'017'295 17'665'682
TOTAL 109'466'209 107'061'351
PRIMA INDUSTRIE 53
2,516 thousand euro. During the half year the Group have recorded loss of a value equal to 69
thousand euro over some assets classified in the ‘’Assets held for sale’’.
NOTE 6.23 – OPERATING EXPENSES
The operating expenses for the first six months of 2013 amounted to 38,380 thousand Euro
compared with 39,759 thousand euro at 30/06/2012.In this figure different types of operating
costs are recorded ,the mains are:
� external production services amounted to 8,164 thousand euro;
� travel expenses amounted to 6,547 thousand euro;
� transport and delivery costs amounted to 4,123 thousand euro;
� rents and use of third party assets amounted to 3,428 thousand euro;
� commissions amounted to 2,344 thousand euro;
� cost for the temporary workers and other personnel costs amount to 1,784 thousand euro;
� consultancies (directional, administrative, fiscal, commercial, and technical) amounted to
1,566 thousand euro;
� exhibitions and advertising expenses amounted to 1,077 thousand euro;
� utilities costs for 1,031 thousand euro.
NOTE 6.24 – FINANCIAL INCOME AND EXPENSES
The financial management of the first six months of 2013 shows a negative result of 4,378
thousand euro.
The financial expenses relating to the FINPOLAR Loan sustained by PRIMA INDUSTRIE are equal to
1,815 thousand euro, while the net financial expenses on the derivatives stipulated by the Group
are equal to 1,158 thousand euro.
NOTE 6.25 – NET RESULTS OF INVESTMENTS NOT FULLY CONSOLIDATED
This figure at 30/06/2013 is negative for 476 thousand euro (a 30/06/2012 was positive for 844
thousand euro) and so it results made by:
� Devaluation of investments EPS detained from PRIMA ELECTRO SpA for 480 thousand euro;
� Adjustment of the investments value in JV SUP at a positive fair value for 12 thousand euro
� Devaluation of the Caretek investments detained by PRIMA ELECTRO SpA for 7 thousand
euro;
� Adjustment of the value of investments in JV SNK (completely liquidated) at the negative
fair value for 1 thousand euro.
The negative variances semester over semester are equal to 1,320 thousand euro and it’s due to
a devaluation intervened in the half year under the examination (see the comments set out
above) and from the fact that in the 2012 half year had been accounted a gain for 845 thousand
euro follows by the sale of the SUP.
Financial Management June 30, 2013 June 30, 2012
Financial income 208'202 53'094
Financial expenses (4'298'582) (4'437'305)
Net exchange differences (287'837) (159'537)
TOTAL (4'378'217) (4'543'748)
PRIMA INDUSTRIE 54
NOTE 6.26 – TAXES
The taxes on income for the first six months of 2013 show a net negative balance of 800
thousand Euro (of which IRAP, Regional income tax, is equal to 715 thousand euro). The Group
recorded a tax credit amounting to 1,048 thousand Euro following the submission of claims for
IRES refund (IRAP deductions for IRES purposes for the years 2007-2011) in February 2013.
NOTE 6.27 – EARNINGS PER SHARE
(a) Earnings per share
The earnings per share is determined by dividing the profits attributable to the shareholders
from the Parent Company by the average number of shares in circulation during the period,
excluding ordinary shares bought by the Parent Company, held as own shares in portfolio.
During the first six months of 2013, the average shares in circulation is equal to 8,645,069;
therefore the earnings per share in the first six months of 2013 amounted to a loss of 0,03 per
share (compared to a profit of 0,04 per shares relative to the first six months of 2012)
(b) Diluted profits per share
The diluted profits per share is calculated by dividing the profits attributable to the shareholders
of the Parent Company by the considered average of shares in circulation, adjusted to take into
account the effects of all potential ordinary shares with dilutive effect.
Those shares attached to stock option plans and to warrants which might be taken up before 16
December 2013 were considered as potential ordinary shares with dilutive effect.
In relation to the stock option plan, see the paragraph in this document specifically dedicated to
this topic. The diluted profit per share reported in the financial statements is the same as the
base profit, as per IAS/IFRS accounting principles in the event that a situation of anti-dilution
occurs ( the loss arising from the dilutive calculation is less than the base loss).
NOTE 6.28 – INFORMATION ON RELATED PARTIES
Transactions with co-related parties concern the relationships with strategic management and
the Board of Statutory Auditors.
BASIC PROFIT PER SHARE June 30, 2013 June 30, 2012
Profit due to shareholders (Euro/000) (221) 310
Weighted average number of ordinary shares 8'645'069 8'640'967
Basic profit per share (Euro) (0,03) 0,04
DILUTED RESULT PER SHARE June 30, 2013 June 30, 2012
Profit due to shareholders (Euro/000) (221) 310
Weighted average number of ordinary shares 8'645'069 8'640'967
Corrected average number of ordinary shares 10'972'188 10'980'626
Diluted result per share (0,02) 0,03
OPERATIONS WITH RELATED PARTIES STRATEGIC MANAGEMENTBOARD OF
STATUTORY AUDITORSTOTAL
RECEIVABLES AS OF 01/01/2013 - - -
RECEIVABLES AS OF 30/06/2013 - - -
PAYABLES AS OF 01/01/2013 487'474 105'000 592'474
PAYABLES AS OF 30/06/2013 151'301 42'500 193'801
COSTS 01/01/2013 - 30/06/2013 503'190 52'500 555'690
CHANGES IN PAYABLES
01/01/2013 - 30/06/2013 (336'173) (62'500) (398'673)
PRIMA INDUSTRIE 55
NOTE 6.29 – NOT RECURRING ITEMS
The table here below synthesized the not recurring items put in existence by the Group during
the first semester 2013 which had have a positive impact over the economic account of 38
thousand euro.
NOTE 6.30 – SECTOR INFORMATION SHEET
Attention is drawn to the fact that not all the data shown below are directly comparable with
those presented in chapters "3 – Interim Report on the Management of the Group" and "4 –
Economical Progress by Sector", given that the latter are expressed as gross of the inter-sector
parties.
Information sheet by sector of activity
The inter-sector returns have been determined on the basis of market prices.
The operational sectors of the group are the following two:
- PRIMA POWER
- PRIMA ELECTRO
The principal sector details are supplied below.
Nor Recurring ItemsOther
incomeImpairment
Net result of investments not
fully consolidated Total
Government Grants 694 - - 694
Actions of reorganization/Restructuring (100) - - (100)
EBITDA 594 - - 594
Impairment of Asset held for Sale - (69) - (69)
EBIT 594 (69) - 525
Economical effect on investment operations - - (487) (487)
NET RESULT BEFORE TAXES 594 (69) (487) 38
Sector profit as of June 30, 2013 PRIMA POWER PRIMA ELECTRO Items not allocated TOTAL
Total sector revenues 143'480 25'835 - 169'315
(Inter-sector revenues) (25) (7'345) - (7'370)
Revenues 143'455 18'490 - 161'945
EBITDA 8'159 3'195 11'354
EBIT 3'240 2'193 5'433
Net financial expenses/income (3'981) (397) - (4'378)
Income/costs from investments not fully consolidated 11 (487) - (476)
Profit before taxes - - - 579
Taxes - - (800) (800)
Net result - - - (221)
Sector assets and liabilities as of June 30, 2013 PRIMA POWER PRIMA ELECTRO Items not allocated TOTAL
Assets 286'086 57'765 33'575 377'426
Related Parties, J/V and other equity investments (*)
1'312 178 - 1'490
Total assets 287'398 57'943 33'575 378'916
Liabilities 113'822 15'610 164'836 294'268
(*) Including the investments classified in the Asset hel for Sale
EBIT and EBITDA values here presented are not directly reconcilable with the data presented in Chapter 4 -ECONOMIC PERFORMANCE BY SEGMENT since
they are not presented at net of inter -sector items.
PRIMA INDUSTRIE 56
Information sheet by geographic area
For details regarding the information on returns subdivided by geographical area, see the
information shown in chapter 3 "Interim Report on Management of the Group", in the paragraph
"Income and Profitability".
NOTE 6.31 – MANAGEMENT OF FINANCIAL RISKS
The financial instruments of the Group, aimed at financing the operational activity, include the
bank financing, the financial leasing contracts and factoring, the cash and short term bank
deposits. There are then other financial instruments, such as commercial payables and
receivables, deriving from the operational activity.
The group has also carried out operations in derivatives, primarily "Interest Rate Swap – IRS"
contracts. The aim of these instruments is to manage the interest rate risks generated by the
Group operations and from their sources of financing.
The PRIMA INDUSTRIE Group is mainly exposed to the following categories of risk:
� Interest rate risk
� Exchange rate risk
� Credit risk
� Liquidity risk
The Group has adopted a specific policy with the aims of correctly managing the risks
mentioned, in order to safeguard its own activity and capacity to create value for shareholders
and for all the stakeholders. The objectives and politics of the Group for the management of
risks described above is detailed below.
Interest rate risk
The debit position towards the credit system and capital markets can be negotiated at a fixed or
variable rate.
Variations of interest rate in the market generate the following categories of risk:
� an increase in market interest rates exposes to the risk of greater financial burdens to be
paid on the quota of variable interest rate debits;
� a decrease in market interest rates exposes to the risk of excessive financial burdens to be
paid on the quota of fixed interest rate debits.
Sector profit as of June 30, 2012 PRIMA POWER PRIMA ELECTRO Items not allocated TOTAL
Total sector revenues 143'887 29'425 - 173'312
(Inter-sector revenues) (31) (9'756) - (9'787)
Revenues 143'856 19'669 - 163'525
EBITDA 7'286 3'933 - 11'219
EBIT 2'684 3'001 - 5'685
Net Financial cost/income (3'947) (596) - (4'543)
Income/expenses from affiliates and Joint Ventures 844 - - 844
Profit before taxes - - - 1'986
Taxes - - (1'676) (1'676)
Net result - - - 310
Sector assets and liabilities at June 30, 2012 PRIMA POWER PRIMA ELECTRO Items not allocated TOTAL
Assets 293'060 59'956 30'007 383'023
Related Parties, JV and other equity investments 8'640 848 - 9'488
Total assets 301'700 60'804 30'007 392'511
Liabilities 123'539 19'766 169'525 312'830
PRIMA INDUSTRIE 57
In particular, the strategies adopted by the Group to confront these risks are as follows:
� Interest Rate Management/Hedging
Exposure to interest rates is by nature structural, in that the net financial position generates net
financial burdens subject to the volatility of interest rates, according to the contractual
conditions established with the financing party.
Consequently, the identified strategy is of Management/Hedging and is confirmed by:
� Continuous monitoring to the exposure to interest rate risks;
� Hedging activity through derivative financial instruments.
Exchange rate risk
The debit position towards the banking system and the capital market, as well as towards other
creditors, can be expressed in one's own account currency (Euro), or in other currencies on
account.
In this case, the financial burden of the debit in currency is subject to the interest rate risks, not
of the European market, but of the market of the chosen currency.
The attitude and strategy to follow with regards to risk factors are determined by the plurality
of elements which concerned both the characteristics of the reference market and their impact
on the company balance sheet results.
Indeed, four possible strategic and distinctive areas for the operational management of
individual risk factors can be identified:
� "Avoid" strategy (Avoidance)
� Acceptance
� Management/Hedging
� "Market intelligence" (Speculation)
In particular, the strategies primarily adopted by the Group to confront these risks are as
follows:
� Exchange Rate Management/Hedging
Exposure to exchange rate risks deriving from financial factors is currently contained, in that the
company does not take on financing in currency different from the Europe, with the exception of
some financing of the U.S. subsidiaries, for which the U.S. dollar is the reference currency.
In relation to the commercial transactions on the other hand, at Group level there exists a
certain exposure to exchange rate risk, in that the fluctuations of purchase in U.S. dollars
(substantially the only relevant accounting currency different from the Euro) of the Parent
Company PRIMA INDUSTRIE SpA, of FINN-POWER OY and of PRIMA ELECTRO SpA are not sufficient
to balance the fluctuations of sales carried out in U.S. dollars.
Nevertheless, the Group carries out monitoring to reduce such exchange risks even through the
use of covering instruments.
With regard to account currencies different from the U.S. dollar, which concern almost
exclusively some of the subsidiary companies which carry out sales and after sales service
activities, the risk management strategy is rather one of acceptance, both because they
normally deal with sums of modest value, and because of the difficulty of finding suitable
covering instruments.
PRIMA INDUSTRIE 58
Credit risk
The Group only deals with noted and trustworthy clients; furthermore, the amount of credit is
monitored during the financial year so that the sum exposed to losses is not significant.
To this end, with regards to PRIMA INDUSTRIE, a function of Group of credit management has
recently been put in place.
It is noted that part of the credit towards clients are transferred through factoring operations.
There are no significant concentrations of credit risk within the Group.
The financial activities are shown in the balance sheet net of the devaluation calculated on the
basis of risk of non-fulfillment by the counter party, determined in consideration of the
information available on the solvency of the client and eventually considering historical data.
In compliance with the CONSOB DEM/RM 11070007 communication of August 5, 2011, we inform
that the PRIMA INDUSTRIE Group Holds no bonds issued by central and local governments nor by
government bodies, and has certainly not granted loans to these institutions.
Liquidity risk
The liquidity risk represents the risk that the financial resources are not sufficient to fund the
financial and commercial obligations within the pre-established periods and due dates.
The risk of liquidity to which the group is subject may emerge from late payments on its sales
and more generally from the difficulty of obtaining financing to support operational activities in
the time necessary. The cash flows, the financing needs and the liquidity of the group companies
are monitored or managed centrally under the control of the Group Treasury, with the aims of
guaranteeing effective and efficient management of financial resources.
The Group operates with the aims of carrying out collection operations on the various financial
markets with varied techniques, with the aims of guaranteeing a correct level of liquidity
whether current or prospective. The strategic aim is to ensure that at any moment of the group
has sufficient credit lines to service financial due dates over the following twelve months.
The current difficult market environment whether operational or financial requires particular
attention to the management of liquidity risks and, in this sense, particular attention is given to
those actions aimed at generating financial resources through operational management and the
maintenance of an adequate level of available liquidity.
Therefore, the group has arranged to confront the requirements emerging from financial payable
due dates and from the investments, through the fluctuations caused by operational
management, available liquidity, use of credit lines, the renewing of bank loans and eventual
recourse to other forms of provision of a non-ordinary nature.
Hierarchical level of valuation of the fair value
In relation with the financial instruments surveyed in the statement of financial position at the
fair value, the IFRS 7 requests that these values are classified on the basis of a hierarchical level
which reflect significantly the input used to the determination of the fair value .We distinguish
the followings levels:
� Level 1-quotation surveyed on a active market for assets and liabilities objected under
evaluation
� Level 2- input differing from the listed prices of which in the precedent point ,which are
observable directly (prices) o indirectly (derived from the prices) over the market;
� Level3-input which they a
The following chart underlines th
at 30/06/2013
NOTE 6.32-SUBSIQUENT EVENTS
There are no the intervention of
Semiannual Relation which, if un
values.
Signature of the Chairman
____________________________
Values expressed in Euro thousand
Assets valuated at fair value
Other Assets
TOTAL ASSETS
Liabilities valuated at fair value
Other liabilities
TOTAL LIABILITIES
are not based on observable market date
the assets and the liabilities which are evalu
S
f successive facts about the referred date of
nknown, should have resulted in a correction
__
Level 1 Lev
-
- -
-
- 6'1
- -
- 6'1
PRIMA INDUSTRIE 59
ated at the fair value
f Financial
n of the measured
el 2 Level 3
8 -
- -
8 -
114 -
- -
14 -
ATTESTATION OF THE HALF-
PURSUANT TO ART. 81-ter
AMENDED
1.The undersigned Gianfranc
of the board of directors) of
bis, comma 3 and 4, of the le
� The adequacy in relati
� The effective applica
preparation of half yea
2. in this regard there are no
3. In addition, we attest that
3.1 The half year financi(a) is prepared
by the Eurothe Europea
(b) correspondsrecords;
(c) is able to gresults and
3.2 The interim managem
have occurred in the
condensed financial
uncertain for the six
comprehends, a relia
with related parties
Date: 28/08/2013
Signature of the chairman
__________________________
Signature manager responsibl
_________________________
PRIM
- YEAR CONDENSED FINANCIAL STATEMENT
er of CONSOB Regulation No. 11971 OF
co Carbonato (chairman and C.E.O) e Mas
PRIMA INDUSTRIE SpA, pursuant to the prov
gislative decree 24th February 1998, no. 58
ion to the structure of the company and
ation of a administrative and accounting
ar condensed, during the period 1°January 2
significant issues
t:
ial statement:
d in accordance with International accountiopean Community pursuant to regulations (an Council and Parliament, at 19th July 200ds to the amounts shown in the company’s
give a true and fair representation of the fd the cash flow of the companies included in
ment report includes a fair analysis of the i
e first six months of the financial year an
statement ,together with a description o
x months of the financial year. The interim
iable analysis about the information on sig
____
ble for preparing the corporate accounting do
A INDUSTRIE
60
TS
14 MAY 1999, AS
ssimo Ratti (secretary
isions of the art. 154-
hereby attest:
g procedures for the
2013 – 30 June 2013;
ing standards adopted (CE) no. 1606/2002 of 2; s accounts, books and
financial position, the the consolidation
important events that
d their effect on the
f the main risks and
management report
ignificant transactions
documents
