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INTERIM FINANCIAL REPORT AS AT MARCH 31, 2013
Board of Directors on May 14, 2013
PRIMA INDUSTRIE 1
PRIMA INDUSTRIE S.p.A.
Company Capital € 21,609,195.00 (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
PRIMA INDUSTRIE 2
CONTENTS
CHAPTER 1. STRUCTURE AND PROFILE OF THE PRIMA INDUSTRIE GROUP ON 31/03/2013 ______ 4
STRUCTURE OF THE PRIMA INDUSTRIE GROUP ____________________________________________ 4
PROFILE OF THE PRIMA INDUSTRIE GROUP _______________________________________________ 5
AREA OF CONSOLIDATION _____________________________________________________________ 5
CHAPTER 2. INTRODUCTION _____________________________________________________ 9
FOREWORD ________________________________________________________________________ 9
ALTERNATIVE PERFORMANCE INDICATORS _______________________________________________ 9
EXCHANGE RATES __________________________________________________________________ 10
CHAPTER 3. GROUP INTERIM MANAGEMENT REPORT _________________________________ 12
MACROECONOMIC CONTEXT __________________________________________________________ 12
REVENUES AND PROFITABILITY _______________________________________________________ 13
NET FINANCIAL POSITION ____________________________________________________________ 16
TRADE ASSETS AND ORDER PORTFOLIO _________________________________________________ 17
RESEARCH AND DEVELOPMENT _______________________________________________________ 17
OPERATIONS WITH RELATED PARTIES __________________________________________________ 17
STOCK TREND AND TREASURY STOCK __________________________________________________ 17
SHAREHOLDING STRUCTURE _________________________________________________________ 18
STOCK OPTION PLANS _______________________________________________________________ 18
FORESEENABLE DEVELOPMENTS OF MANAGEMENT _______________________________________ 19
EVENTS WHICH TOOK PLACE AFTER THE END OF THE QUARTER ____________________________ 19
ATYPICAL AND UNUSUAL TRANSACTIONS _______________________________________________ 19
CHAPTER 4. ECONOMIC PERFORMANCE BY SEGMENT _________________________________ 21
PRIMA POWER _____________________________________________________________________ 21
PRIMA ELECTRO ____________________________________________________________________ 22
CHAPTER 5. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF PRIMA INDUSTRIE GROUP 31/03/2013 ____ 24
CONSOLIDATED FINANCIAL BALANCE SHEET _____________________________________________ 24
CONSOLIDATED INCOME STATEMENT ___________________________________________________ 25
TOTAL CONSOLIDATED INCOME STATEMENT ____________________________________________ 26
STATEMENT OF CHANGES IN CONSOLIDATED STOCKHOLDERS’ EQUITY _______________________ 27
CONSOLIDATED CASH FLOW STATEMENT _______________________________________________ 28
CHAPTER 6. EXPLANATORY NOTES _______________________________________________ 30
FORM AND CONTENT ________________________________________________________________ 30
ACCOUNTING PRINCIPLES ____________________________________________________________ 30
FINANCIAL STATEMENTS _____________________________________________________________ 31
CERTIFICATION OF THE CONSOLIDATED FINANCIAL STATEMENTS AT 31/03/2013 ______________ 46
PRIMA INDUSTRIE 3
CHAPTER 1.
STRUCTURE AND PROFILE OF THE PRIMA INDUSTRIE GROUP ON 31/03/2013
PRIMA INDUSTRIE 4
CHAPTER 1. STRUCTURE AND PROFILE OF THE PRIMA INDUSTRIE GROUP ON 31/03/2013
STRUCTURE OF THE PRIMA INDUSTRIE GROUP
The statement in these pages represents the organizational structure of the PRIMA INDUSTRIE Group
on 31/03/2013. The companies included in the PRIMA INDUSTRIE Group are all substantially owned
100%.
1) FINN POWER OY holds 78% of PRIMA POWER IBERICA SL (the remaining 22% is held by PRIMA INDUSTRIE SpA).
2) FINN POWER OY holds 94% of PRIMA POWER BENELUX NV (the remaining 6% is held by BALAXMAN 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, panelling machines and automation systems).
This division owns production establishments in Italy (PRIMA INDUSTRIE SpA and FINN-POWER
ITALIA Srl), in Finland (FINN-POWER OY), in the United States of America (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, United States, Canada, Brazil, China, India, Korea and the Arab
Emirates.
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 establishments in Italy (PRIMA ELECTRO SpA) and in the United States of America
(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.
AREA OF CONSOLIDATION
There were no changes in the area of consolidation for the first three months of 2013. On
31/03/2013, the subsidiary companies indicated in the following prospectuses were the
object of full consolidation.
PRIMA INDUSTRIE 6
(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 99,99% 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. CHINA RMB 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 SarlEspace 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 G94/2B 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 28000 Toronto, Ontario M5H 2Y2 Canada CAD 200 100% Line-by-line method
PRIMA INDUSTRIE 7
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 8
CHAPTER 2.
INTRODUCTION
PRIMA INDUSTRIE 9
CHAPTER 2. INTRODUCTION
FOREWORD
The Interim Management Report at March 31, 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 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 Balance Sheets.
Also note that, following the retrospective application 01/01/2013 Amendment to IAS 19, the
data for 2012 reported for comparison, where appropriate, have been restated as required by
IAS 1.
This Interim Management Statement has been approved by the Board of Directors on May 14,
2013, and has not been subject to an 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
progress of the economic-financial management.
Such indicators, which are also presented in the Interim report on management, on the
occasion of the other periodic statements, 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 earnings"),
� the EBITDA ("Profits before interest, taxes and amortisation"), which is determined by
adding to the "Operational Earnings" resulting from the balance sheet either under the
item "Amortisation", or the item "Impairment and Devaluation".
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 10
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 Mar. 31, 2013 Mar. 31, 2012 Mar. 31, 2013 Dec. 31, 2012
US DOLLAR 1,3204 1,3110 1,2805 1,3194
POUND STERLING 0,8517 0,8345 0,8456 0,8161
CHINESE RENMINBI 8,2193 8,2702 7,9600 8,2207
JAPANESE YEN 121,9102 103,9899 120,8700 113,6100
POLISH ZLOTY 4,1563 4,2322 4,1804 4,0740
CANADIAN DOLLAR 1,3317 1,3129 1,3021 1,3137
RUSSIAN RUBLE 40,1507 39,5477 39,7617 40,3295
BRAZILIAN REAL 2,6347 2,3162 2,5703 2,7036
INDIAN RUPEE 71,5212 65,8863 69,5666 72,5600
TURKISH LIRA 2,3578 2,3551 2,3212 2,3551
AVERAGE EXCHANGE RATE SPOT EXCHANGE RATE
PRIMA INDUSTRIE 11
CHAPTER 3.
GROUP INTERIM MANAGEMENT REPORT
PRIMA INDUSTRIE 12
CHAPTER 3. INTERIM REPORT ON THE MANAGEMENT OF THE GROUP
MACRO ECONOMIC CONTEXT
The first four months of 2013 began in an atmosphere of almost universal optimism about the
macro-economic prospects, but later the return to the foreground of some key issues has
progressively ruined this climate. While remaining on course for a gradual improvement, the
global economy continues to be exposed to the effects of fiscal tightening in the U.S., the
crisis in the Euro area and the delicate transition between models of growth occurring in the
emerging world.
A state of deep recession continues to weigh on Italy and, to a greater or lesser extent, on
other European Union countries.
The recession that hit the Euro area from the beginning of 2012 due to the efforts of fiscal
consolidation seems destined to last at least until the middle of the year.
In this mediocre context for the monetary union, it is only Germany that stands apart,
showing a growth momentum.
Italy's GDP, which fell by 3.7% annually in the last trimester of 2012, is expected to continue
to contract in both the first and the second trimesters of 2013, and is the only G7 country in
this situation; according to the OECD, in fact, the Italian GDP will fall 1.6% annually in the
first three months of this year, and 1% in the following three months. The structural reforms
implemented by Italy and other European countries can provide a solid basis for a recovery of
competitiveness and an increase in employment when demand will mark a turnaround.
According to the OECD in most Euro area countries the majority of the fiscal adjustments
necessary following the crisis have already been made. Within the Eurozone there is a
renewed divergence between growth in Germany - which will most likely start out strongly
again in the first two trimesters of 2013 - and that of other Countries, which will remain slow
or negative. The GDP of Berlin, the organization estimates, will mark +2.3% in the first
trimester and +2.6% in the second, while that of France, another Euro Country in the G7 along
with Italy, will record -0.6% and +0.5%, respectively. The Euro area seems to remain
vulnerable to the risk of sharp deterioration because the vicious circle between the fragility
of the banking system and public debt has not been entirely eliminated.
As for the U.S. economy, it grew by 2.5% in the first three months of 2013, against the
expectations of analysts who had expected an increase of 3.5%.
With regard to emerging economies, after the hint of improvement in the autumn of 2012, in
the winter the emerging economies saw their growth momentum stabilize at rates that are
often significantly lower than those of the last decade. It is the result of the transition from
the model of export-based growth, to that based on domestic demand.
In the first three months of 2013 according to UCIMU (the Italian association that brings
together manufacturers of machine tools), the index of machine tool orders saw a drop of
9.8% compared to the same period in 2012, with a decline in domestic orders of 35.9% (by
touching a record low for the industry) and orders to foreign countries of 4.6%.
In February 2013 the Association for Manufacturing Technology (AMT) in the USA recorded an
increase in orders of 5.7% compared to January, but a decrease of 10.6% compared to
February of 2012 and a progressive annual basis which is reduced by 11.9% compared to 2012,
in line with forecasts expecting a slight contraction of the market in the first two trimesters
of 2013, neutralized, on an annual basis, by a recovery in the second half of the year.
PRIMA INDUSTRIE 13
In this context, the results achieved by the PRIMA INDUSTRIE Group are framed and reported
below.
REVENUES AND PROFITABILITY
The consolidated revenues at 31/03/2013 amount to 72,881 thousand Euro, a growth of 4%
(equal to 3,013 thousand Euro) compared with the corresponding period of the 2012 financial
year (69,868 thousand Euro). It should be noted, however, that the first four month period is
historically influenced by the seasonality of revenues.
The consolidated turnover is shown below on a geographic basis at 31/03/2013 compared with
the corresponding period for the previous financial year. Revenues
Euro thousand % Euro thousand %
Italy 8.970 12,3 9.778 14,0
Europe 27.174 37,3 26.704 38,2
North America 12.653 17,4 17.330 24,8
Asia and rest of the world 24.084 33,0 16.056 23,0
TOTAL 72.881 100,0 69.868 100,0
Mar. 31, 2013 Mar. 31, 2012
The sales per geographic area show a growing turnover in the markets of Asia and the Rest of
the World (+8,028 thousand Euro), with the revenue produced reaching 33% of consolidated
turnover. In Italy there was a decrease of 8.3% compared with the preceding financial year,
confirming the negative moment for the domestic market. Turnover in North America was
temporarily affected by the slowdown of acquisition of orders in autumn 2012, during the
U.S. pre-election period; against this, however, already in the first four months of 2013 the
collection of orders in this market was more than 30% higher compared to the same period for
the previous financial year.
The trend also continues, already registered in 2012, with sales made outside Europe (50.4%)
exceeding those made in Europe, including Italy (49.6%), confirming the movement of the
global economy's centre of gravity.
Below, a subdivision of the proceeds by sector of the gross inter-sector transactions is shown
(for more detailed indications on the matter of operational segments of the Group, see the
note 6.28 - Sector Information). Revenues
Euro thousand % Euro thousand %
PRIMA POWER 60.833 83,5 59.635 85,4
PRIMA ELECTRO 15.888 21,8 14.407 20,6
Inter-sector revenues (3.840) (5,3) (4.174) (6,0)
TOTALE 72.881 100,0 69.868 100,0
Mar. 31, 2013 Mar. 31, 2012
To complete the information on the proceeds, the sub-division of the same is shown below
(net of the inter-sector transactions) per sector and per geographical area, both for the first
quarter of 2013 and for the first quarter of 2012.
PRIMA INDUSTRIE 14
Revenues segment/area - March 31 2013 Italy Europe North AmericaAsia and rest of
the worldTOTAL
€/000
PRIMA POWER 6.291 19.664 12.077 22.787 60.819
PRIMA ELECTRO 2.679 7.510 576 1.297 12.062
TOTAL 8.970 27.174 12.653 24.084 72.881
Revenues segment/area - March 31 2012 Italy Europe North AmericaAsia and rest of
the worldTOTAL
€/000
PRIMA POWER 7.083 20.521 16.700 15.324 59.628
PRIMA ELECTRO 2.695 6.183 630 732 10.240
TOTAL 9.778 26.704 17.330 16.056 69.868
In the first quarter of 2013, the PRIMA POWER division records an overall increase in sales
(+2% compared to the corresponding period of 2012); the area driving this increase appears to
be Asia and Rest of the World, in particular, sales rose in China, Turkey, India, Taiwan, Japan
and the countries of south-east Asia. The division made 37.5% of its sales to Asia and Rest of
the world, 32.3% to Europe, 19.9% to North America, and 10.3% to Italy.
The PRIMA ELECTRO division, compared to the corresponding period of 2012, shows a
significant increase in sales (+1,822 thousand Euro), in particular in the countries of Europe
and Asia and the rest of the world. The division achieved 62.3% of sales in Europe (mainly
Spain) 22.2% in Italy, 10.8% in the Countries of Asia and the Rest of the World (mainly China)
and the remaining 4.7% in North America. The said values do not take into account the
turnover achieved by PRIMA ELECTRO towards the PRIMA POWER division.
The Value of production at 31/03/2013 is equal to 80,768 thousand Euro, a reduction of 4%
with respect to the corresponding period for 2012 (reduction of 3,319 thousand Euro).
In the value of the production of the period, increases for internal work are present, equal to
1,925 thousand Euro (1,399 thousand Euro at 31/03/2012); these costs principally refer to
investment in development activities.
Performance indicators
Euro thousand % on sales Euro thousand % on sales
EBITDA 4.642 6,4 4.113 5,9
EBIT 1.682 2,3 1.561 2,2
EBT (692) (0,9) (893) (1,3)
NET RESULT (803) (1,1) (1.752) (2,5)
Mar. 31, 2013 Mar. 31, 2012
The EBITDA of the Group amounted to 4,642 thousand Euro (6.4% of turnover); compared to
the first three months of 2012 there was an improvement of 529 thousand Euro.
The EBITDA of the group is shown below at 31/03/2013 and at 31/03/2012 subdivided by
sector (gross of the inter-sector transactions).
EBITDA
Euro thousand % Euro thousand %
PRIMA POWER 2.270 48,9 1.925 46,8
PRIMA ELECTRO 2.643 56,9 2.350 57,1
Inter sector items and eliminations (271) (5,8) (162) (3,9)
TOTAL 4.642 100,0 4.113 100,0
Mar. 31, 2012Mar. 31, 2013
PRIMA INDUSTRIE 15
The consolidated EBIT at 31/03/2013 amounted to 1,682 thousand Euro and is an
improvement of 121 thousand Euro compared to the first three months of 2012 (amounting to
1,561 thousand Euro). The amortization of the tangible fixed assets influence this result to
the amount of 661 thousand Euro and intangible fixed assets to the amount of 2,299 thousand
Euro. With regard to the amortization of intangible fixed assets, the main items relate to the
amortization of development costs (1,244 thousand Euro) and the amortization related to
assets with a defined useful life recognized in the business merger of the FINN POWER Group
(brand and relations with customers - "customer list"), which amounted to 752 thousand Euro.
The EBITDA of the group is shown below at 31/03/2013 and 31/03/2012, subdivided by sector
gross of the inter-sector transactions. EBIT
€/000 % €/000 %
PRIMA POWER (191) (11,3) (203) (13,0)
PRIMA ELECTRO 2.145 127,5 1.923 123,2
Inter sector items and eliminations (272) (16,2) (159) (10,2)
TOTAL 1.682 100,0 1.561 100,0
Mar. 31, 2012Mar. 31, 2013
The consolidated EBT at 31/03/2013 amounts to -692 thousand Euro with an improvement of
201 thousand Euro compared to the same period for the previous financial year (equal to
-893 thousand Euro); please note that this value discounts net burdens arising from financial
management (including gains and losses on exchange rates) of 2,373 thousand Euro (at
31/03/2012 equal to 2,225 thousand Euro).
Financial results (€/000) Mar. 31, 2013 Mar. 31, 2012
FINPOLAR loan expenses (897) (1.223)
Derivates expenses (IRS) (631) (491)
Derivate expenses (CRS) (148) 30
Net exchange differences (63) (318)
Other financial expenses (634) (223)
TOTAL (2.373) (2.225)
Burdens are shown for the financing stipulated in 2008 for the acquisition of the FINN POWER
Group (hereafter for brevity "FINPOLAR financing") equal to 897 thousand Euro and net
financial burdens for derivative instruments (primarily connected to FINPOLAR financing) for
779 thousand Euro. To properly compare the data from the two trimesters, it should be noted
that the result of the financial management of the first trimester of 2012 was positively
impacted by non-recurring income amounting to 311 thousand Euro; net of this effect,
borrowing costs were substantially in line with those of 2012.
The decline of the charges relating to the FINPOLAR Financing is due to the decrease of
capital, both as a result of refunds made, and as a result of the decrease of the EURIBOR.
However, reduction of the EURIBOR has negatively affected the FINPOLAR derivative.
The exchange management results in the first four months of 2013 were negative to the tune
of 63 thousand Euro (negative to the tune of 318 thousand Euro on 31/03/2012).
The NET PROFIT at 31/03/2013 amounts to -803 thousand Euro (-1,752 thousand Euro at
31/03/2012). The taxes on income for the first three months of 2013 show a net negative
balance of 111 thousand Euro (of which IRAP (Regional income tax) is equal to 341 thousand
PRIMA INDUSTRIE 16
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.
NET FINANCIAL POSITION
On 31/03/2013, the net financial position of the Group was negative at 131,038 thousand
Euro, an improvement compared with the corresponding period of the previous year of 10,950
thousand Euro (negative at 141,988 thousand Euro at 31/03/2012).
The negative variation of 4,759 thousand Euro compared to 31/12/2012 is due to the
absorption of financial resources required for the management of operational activities and
the need for working capital to cope with the expected increase in turnover of the
subsequent three-month periods.
The net financial position is shown as follows.
Value expressed in Euro thousand 31/03/2013 31/12/2012 31/03/2012
CASH & CASH EQUIVALENTS (18.515) (24.459) (17.158)
CURRENT FINANCIAL RECEIVABLES (450) (4.740) 0
CURRENT FINANCIAL LIABILITIES 57.052 56.513 54.980
NON CURRENT FINANCIAL LIABILITIES 92.951 98.965 104.166
NET FINANCIAL LIABILITIES 131.038 126.279 141.988
With the aim of supplying better information relating to the net consolidated financial
position on 31/03/2013, the following should be remembered:
� the FINPOLAR financing amounts to 121,941 thousand Euro and is subject to compliance
with regards to certain covenants measured on an annual and six monthly basis (for
further details, please refer to the indications in the financial statements at
31/12/2012);
� the payables due to leasing companies (almost exclusively of a property nature) amount
to 2,800 thousand Euro;
� bank debits include the negative fair value of some IRS for 6,269 thousand Euro; the
main IRS have been contracted by the Parent Company in partial cover of the risk of
interest rates on FINPOLAR Financing (the underwriting of these derivatives was
foreseen by the financing contract below).
It should be noted that 28,366 thousand Euro classified in short-term liabilities relate to
revolving credit lines, of which 19,946 thousand Euro is due at 31/01/2016 and 8,420
thousand Euro is due at 12/11/2014.
Please note that on 04/02/2013, the company correctly paid the debit due to the Finance
bank pool, relating to the FINPOLAR Financing, comprehensively equal to 7,468 thousand
Euro, subdivided as follows:
� Capital sum quotas A to C1 for 5,123 thousand Euro;
� Interests for quotas A, B and D for 1,306 thousand Euro;
� Differential on the derivative for 1,039 thousand Euro.
For greater detail on the subject of the net financial position to see the Illustrative Note
6.10.
PRIMA INDUSTRIE 17
TRADE ASSETS AND ORDER PORTFOLIO
During the first four months of 2013 the acquisition of orders of the Group (including after-
sale service) amounted to 90.6 million Euro, an increase of 5% compared to 86.2 million Euro
at 31/03/2012. The acquisition of orders with the PRIMA POWER Section was equal to 82.5
million Euro; that relating to the PRIMA ELECTRO sector, only from clients external to the
Group, has been equal to 8.1 million Euro.
The consolidated order book (not including after-sale service) at 31/03/2013 amounted to
104.6 million Euro compared to 122.8 million Euro at 31/03/2012. The reasons for this
reduction are, on the one hand, an acquisition of orders for the last four months of 2012 that
was less than spectacular, and on the other hand, an enhanced ability of the Group to reduce
the time between the order from the customer and the recognition of related revenue.
The portfolio includes 95.5 million Euro relating to the PRIMA POWER sector and 9.1 million
Euro relating to the PRIMA ELECTRO sector.
At 30/04/2013, the order book rose to 117.5 million Euro.
RESEARCH AND DEVELOPMENT
The research and development activity carried out by the group during the first four months
of 2013 has been comprehensively equal to 4,360 thousand Euro (of which 3,221 thousand
Euro in the PRIMA POWER sector and 1,139 thousand Euro in the PRIMA ELECTRO sector) equal
to 6% of turnover.
The capitalized share was equal to 1,824 thousand Euro (of which 1,325 thousand Euro in the
PRIMA POWER sector and 499 thousand Euro in the PRIMA ELECTRO sector).
The costs levels sustained in research and development activities for new products is
testimony to the Group's continued commitment to investing for the future and improving,
through the presence of products always in the technological forefront, its competitiveness
on the international markets.
For all the capitalized development activities, the technical feasibility has been verified as
well as the generation of probable future economic benefits.
OPERATIONS WITH RELATED PARTIES
In the reference period, no operations with co-related parties relevant within the meaning of
article 5, paragraph 8 of the regulation regarding dispositions on the subject of co-related
parties No. 17221 issued by Consob on 12/03/2010 have been undertaken.
For further details of the subject and of other operations carried out by the group with
related parties, refer to "Note 6.27 -INFORMATION ON RELATED PARTIES".
STOCK TREND AND TREASURY STOCK
During the first four months of 2013, the title PRIMA INDUSTRIE has passed from a unit value
of 9.305 Euro on 02/01/2013 to a value of 9.80 Euro in shares on 28/03/2013, with an
increase of 5.3%, reaching a maximum of 9.94 Euro per share in the period.
After 31/03/2013, the stock has remained at values ranging between 9.50 Euro and 10 Euro
per share, i.e. values still higher than the exercise price (set at 8.50 Euro) of the outstanding
warrants and expires on 16/12/2013.
PRIMA INDUSTRIE 18
On 31/03/2013, also being the date of approval of this Report PRIMA INDUSTRIE SpA did not
hold nor holds any of its own shares, as there is no current resolution authorising the purchase
of its own chest.
SHAREHOLDING STRUCTURE
On 31/03/2013, the share capital of PRIMA INDUSTRIE SpA amounts to Euro 21,609,195.00
divided into 8,643,678 Ordinary shares at the nominal value of 2.50 Euro each. No classes of
shares or bonds have been issued other than ordinary shares. On the other hand, from
31/03/2013, no. 2,236,322 "PRIMA INDUSTRIE Warrants 2009-2013."
In the light of the results of the shareholders diary and from subsequent communications
carried out between the company or the overseeing authority, the most up-to-date share
structure is as follows:
STOCK OPTION PLANS
In the month of May 2011, the period of maturing (vesting period) of the stock option plan
approved by the PRIMA INDUSTRIE SpA of 29/04/2008 ended, originally destined for the
Executive Directors of the Parent Company, of PRIMA ELECTRO SpA and of FINN POWER OY, as
well as the Chief Executive of the PRIMA INDUSTRIE SpA and the Group Financial Director.
The beneficiaries have, furthermore, the facility to exercise the assigned options today
established at 28.68 Euro per share, from June 1, 2011, and within and not beyond June 30,
2014 (date of expiry of the plan), in the following two periods of each year until the expiry of
the plan:
� June 1 - June 30
� October 1 - October 30
PRIMA INDUSTRIE 19
The beneficiaries of the plan at the date of reference of this interim Management Report are
the following.
LAST NAME AND FIRST NAME POSITION
CARBONATO Gianfranco PRIMA INDUSTRIE SpA President & CEO
BASSO Ezio PRIMA INDUSTRIE SpA General Manager and Managing Director
PEIRETTI Domenico PRIMA ELECTRO SpA Managing Director and
PRIMA INDUSTRIE SpA Managing Director
RATTI Massimo PRIMA INDUSTRIE Group CFO
For further information on the subject of the stock option plan, attention is drawn to the publication on the company web-site:
www.primaindustrie.com.
As is evident from the current prices of PRIMA INDUSTRIE shares (see paragraph "STOCK
TREND AND TREASURY STOCK"), the options are largely out of the money.
FORESEENABLE DEVELOPMENTS OF MANAGEMENT
Despite the general unfavourable economic situation in most of Europe, the progress in the
collection of orders continues to grow due to the Group's increased direct commercial
presence, which is allowing it to take advantage of the opportunities offered by markets
outside Europe. Indebtedness also shows encouraging signs since over the last twelve months
it has been reduced by almost 11 million Euro. Against this background, expectations for the
financial year 2013 are for the achievement of both revenue and profitability in growth and a
further reduction of debt.
EVENTS WHICH TOOK PLACE AFTER THE END OF THE QUARTER
RENEWAL OF THE BOARD OF STATUTORY AUDITORS
The Shareholders' Meeting of April 24, 2013, appointed the new Board of Statutory Auditors,
appointing as statutory auditors Messrs. Franco Nada, as Chairman, Roberto Petrignani and
Paola Borracchini and as alternate auditors Messrs. Roberto Coda and Gaetana Laselva. The
Board will remain in office until approval of the financial statements at December 31, 2015.
ESTABLISHMENT OF A BRANCH IN AUSTRALIA
During the month of April PRIMA INDUSTRIE SpA formed the company PRIMA POWER
Australasia Pty Ltd, of which owns 100%. The Group, which was already operating in the
Australian and New Zealand market through a distributor, decided to proceed with the
opening of this company in order to best oversee these markets through direct commercial
presence and after-sales service for the customer; this is part of the strategy to strengthen
the Group's commercial network, which has led to a significant strengthening of its presence
in distant markets.
ATYPICAL AND UNUSUAL TRANSACTIONS
Within the meaning of the Consob Communication of 28/07/2006 No. DEM/6064296, it is
specified that, in the reference period, the Group has not undertaken atypical and unusual
transactions, as defined in the Communication itself.
PRIMA INDUSTRIE 20
CHAPTER 4.
ECONOMIC PERFORMANCE BY SEGMENT
PRIMA INDUSTRIE 21
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, panelling 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 progress for the two sectors in which
the Group currently operates.
Values in Euro thousand Revenues EBITDA % on Revenues EBIT % on Revenues
PRIMA POWER 60.833 2.270 3,7% (191) -0,3%
PRIMA ELECTRO 15.888 2.643 16,6% 2.145 13,5%
CONSOLIDATION (3.840) (271) 7,1% (272) 7,1%
GROUP 72.881 4.642 6,4% 1.682 2,3%
March 31, 2013
Values in Euro thousand Revenues EBITDA % on Revenues EBIT % on Revenues
PRIMA POWER 59.635 1.925 3,2% (203) -0,3%
PRIMA ELECTRO 14.407 2.350 16,3% 1.923 13,3%
CONSOLIDATION (4.174) (162) 3,9% (159) 3,8%
GROUP 69.868 4.113 5,9% 1.561 2,2%
March 31, 2012
PRIMA POWER
The revenues for the first quarter of 2013 of the PRIMA POWER sector are greater by 2%
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 an increasing level of revenues, the EBITDA for the sector amounted to 2,270
thousand Euro, an increase both in absolute value (+345 thousand Euro), and in percentage
terms (from 3.2% to 3.7%), confirming a greater level of efficiency achieved by the division.
PRIMA INDUSTRIE 22
PRIMA ELECTRO
The revenues for the first four months of 2013 of the PRIMA ELECTRO sector are greater than
the 10% compared with the previous financial year. The business of the PRIMA ELECTRO
sector, after a slight decline in 2012, has started to grow at double-digit rates.
With an EBITDA of 2,643 thousand Euro, the level of profitability of the PRIMA ELECTRO sector
amounted to 16.6%, confirming the good profitability of this business.
PRIMA INDUSTRIE 23
CHAPTER 5.
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS OF
PRIMA INDUSTRIE GROUP AS OF 31/03/2013
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 24
CHAPTER 5. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF PRIMA INDUSTRIE GROUP
AS OF 31/03/2013
CONSOLIDATED FINANCIAL BALANCE SHEET
01/01/2012 Values in Euro Notes 31/03/2013 31/12/2012
24.472.946 Property, plant and equipment 6.1 24.242.192 24.343.935
152.629.950 Intangible assets 6.2 151.166.653 151.395.283
8.961.044 Investments accounted for using the equity method - -
1.076.998 Other investments 6.3 578.074 567.149
- Non current financial assets 6.4 110.300 83.700
6.648.479 Deferred tax assets 6.5 7.083.336 6.605.259
25.518 Other non current assets 6.8 25.260 25.183
193.814.935 NON CURRENT ASSETS 183.205.815 183.020.509
84.249.605 Inventories 6.6 89.185.062 81.083.768
88.282.812 Trade receivables 6.7 66.200.848 70.702.422
6.406.214 Other receivables 6.8 8.624.853 7.516.732
5.592.470 Current tax receivables 6.9 5.710.329 3.839.898
- Derivatives 6.10 - 69.655
528.637 Financial assets 6.10 449.794 4.671.135
25.179.041 Cash and cash equivalents 6.10 18.514.538 24.458.666
210.238.779 CURRENT ASSETS 188.685.424 192.342.276 0
1.012.201 ASSETS HELD FOR SALE 6.11 4.238.910 4.129.852 0
405.065.915 TOTAL ASSETS 376.130.149 379.492.637
21.601.740 Capital stock 6.12 21.609.195 21.606.553
4.320.069 Legal reserve 6.12 4.320.069 4.320.069
54.326.182 Other capital reserves 6.12 53.808.844 53.215.933
1.331.310 Currency translation reserve 6.12 288.290 (524.506)
(3.597.028) Retained earnings 6.12 4.935.837 (370.776)
1.932.659 Net result 6.12 (802.757) 5.306.613
79.914.932 Stockholders' equity of the Group 84.159.478 83.553.886
Minority interest - -
79.914.932 STOCKHOLDERS' EQUITY 84.159.478 83.553.886
102.350.641 Interest-bearing loans and borrowings 6.10 86.681.169 91.702.909
7.077.491 Employee benefit liabilities 6.13 7.598.797 7.629.302
9.737.709 Deferred tax liabilities 6.14 10.014.153 9.296.512
124.009 Provisions 6.15 128.619 133.403
7.611.171 Derivatives 6.10 6.269.173 7.262.196
126.901.021 NON CURRENT LIABILITIES 110.691.911 116.024.322
79.797.117 Trade payables 6.16 68.764.731 72.403.779
32.355.143 Advance payments 6.16 21.109.056 16.991.891
17.539.790 Other payables 6.16 18.996.739 17.665.682
52.031.067 Interest-bearing loans and borrowings 6.10 56.747.781 56.513.455
6.404.295 Current tax payables 6.17 4.908.116 4.909.673
10.022.786 Provisions 6.15 10.447.943 11.429.949
99.764 Derivatives 6.10 304.394 -
198.249.962 CURRENT LIABILITIES 181.278.760 179.914.429
405.065.915 TOTAL STOCKHOLDERS' EQUITY AND LIABILITIES 376.130.149 379.492.637
PRIMA INDUSTRIE 25
CONSOLIDATED INCOME STATEMENT
Values in Euro Notes 31/03/2013 31/03/2012
Net revenues 6.18 72.880.537 69.867.908
Other income 6.19 803.127 616.351
Change in inventories of finished goods and WIP 5.159.273 12.203.899
Increases in fixed assets for internal work 6.20 1.925.001 1.398.785
Use of raw materials, consumables, supplies and goods (35.830.104) (39.995.417)
Personnel cost 6.21 (22.919.350) (22.561.561)
Depreciation 6.22 (2.960.003) (2.551.972)
Impairment 6.22 - -
Other operating expenses 6.23 (17.376.845) (17.417.225)
OPERATING PROFIT 1.681.636 1.560.768
Financial income 6.24 155.100 41.853
Financial expenses 6.24 (2.465.416) (1.948.707)
Net exchange differences 6.24 (62.892) (318.239)
Net result of investments not fully consolidated (666) (228.283)
RESULT BEFORE TAXES (692.238) (892.608)
Taxes 6.25 (110.519) (859.889)
NET RESULT (802.757) (1.752.497)
- Attributable to Group shareholders (802.757) (1.752.497)
- Attributable to minority shareholders - -
RESULT PER SHARE - BASIC (in euro) 6.26 (0,09) (0,20)
RESULT PER SHARE - DILUTED (in euro) 6.26 (0,09) (0,20)
PRIMA INDUSTRIE 26
TOTAL CONSOLIDATED INCOME STATEMENT
Values in Euro Notes 31/03/2013 31/03/2012
NET RESULT (A) (802.757) (1.752.497)
Profit /(Losses) on cash flow hedges 6.12 584.784 166.826
Profit /(Losses) deriving for foreign companies balance sheet 6.12 812.796 (1.056.613)
TOTAL OTHER PROFIT /(LOSSES) (B) 1.397.580 (889.787)
NET RESULT OF THE PERIOD (A) + (B) 594.823 (2.642.284)
- of which attributable to Group shareholders 594.823 (2.642.284)
- of which attributable to minority shareholders - -
PRIMA INDUSTRIE 27
STATEMENT OF CHANGES IN CONSOLIDATED STOCKHOLDERS’ EQUITY from January 1st, 2012 to March 31st, 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
movements31/03/2012
Capital stock 21.601.740 - 21.601.740 - - - - - - 21.601.740
Additional paid-in capital 46.451.069 - 46.451.069 - - - - - - 46.451.069
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) - - - - 166.826 - (5.383.508)
Other reserves 13.416.095 - 13.416.095 - - - - - - 13.416.095
Currency translation reserve 1.331.310 - 1.331.310 - - - - (1.056.613) - 274.697
Retained earnings (3.390.665) (206.363) (3.597.028) - - 1.932.659 - - - (1.664.369)
Net result 1.932.659 - 1.932.659 - - (1.932.659) - (1.752.497) - (1.752.497)
Stockholders' equity of the Group 80.121.295 (206.363) 79.914.932 - - - - (2.642.284) - 77.272.648
Minority interest - - - - - - - - - -
STOCKHOLDERS' EQUITY 80.121.295 (206.363) 79.914.932 - - - - (2.642.284) - 77.272.648
from January 1st, 2013 to March 31st, 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
movements31/03/2013
Capital stock 21.606.553 - 21.606.553 - 2.642 - - - - 21.609.195
Subscrubed Capital Unpaid (1.785) - (1.785) - 1.785 - - - - -
Additional paid-in capital 46.462.619 - 46.462.619 - 6.342 - - - - 46.468.961
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 (5.187.680) - (5.187.680) - - - - 584.784 - (4.602.896)
Other reserves 11.933.427 - 11.933.427 - - - - - - 11.933.427
Currency translation reserve (524.506) - (524.506) - - - - 812.796 - 288.290
Retained earnings 24.662 (395.438) (370.776) - - 5.306.613 - - - 4.935.837
Net result 5.306.613 - 5.306.613 - - (5.306.613) - (802.757) - (802.757)
Stockholders' equity of the Group 83.949.324 (395.438) 83.553.886 - 10.769 - - 594.823 - 84.159.478
Minority interest - - - - - - - - - -
STOCKHOLDERS' EQUITY 83.949.324 (395.438) 83.553.886 - 10.769 - - 594.823 - 84.159.478
PRIMA INDUSTRIE 28
CONSOLIDATED CASH FLOW STATEMENT
VALUES IN EURO 31/03/2013 31/03/2012
Net result (802.757) (1.752.497)
Adjustments (sub-total) (2.588.460) (1.341.523)
Depreciation and impairment 2.960.003 2.551.972
Net change in deferred tax assets and liabilities 239.564 (426.616)
Change in employee benefits (30.505) (88.250)
Change in inventories (8.101.294) (16.069.192)
Change in trade receivables 4.501.574 14.067.183
Change in trade payables 478.117 (1.100.962)
Net change in other receivables/payables and other assets/liabilities (2.635.919) (275.658)
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES (A) (3.391.217) (3.094.020)
Cash flow from investments
Acquisition of tangible fixed assets (*) (577.988) (952.764)
Acquisition of intangible fixed assets (66.201) (234.113)
Capitalization of development costs (1.824.205) (1.326.267)
Net disposal of fixed assets and investment properties (*) 95.314 102.186
Net result of JV investments (**) 666 228.283
Disposal/(Purchase) of other investments (10.925) 72.718
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES (B) (2.383.339) (2.109.957)
Cash flow from financing activities
Change in other financial assets/liabilities and other minor items (**) 3.931.231 497.114
Increases in loans and borrowings (including bank overdrafts) 227.620 666.953
Repayment of loans and borrowings (including bank overdrafts) (5.148.827) (2.879.336)
Increases/(repayments) in financial lease liabilities (3.161) (45.043)
Capital increase 10.769 -
Other changes (**) 812.796 (1.056.612)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES (C) (169.572) (2.816.924)
Net change in cash and equivalents (D=A+B+C) (5.944.128) (8.020.901)
Cash and equivalents beginning of period (E) 24.458.666 25.179.041
Cash and equivalents end of period (F=D+E) 18.514.538 17.158.140
Additional information to the Consolidated cash-flow statement March 31st, 2013 March 31st, 2012
Values in Euro
Income Taxes (110.519) (859.889)
Financial Income 155.100 41.853
Financial costs (2.465.416) (1.948.707)
(*) included assets held for sale
(**) items to be reclassified in respect to March 31st, 2012
PRIMA INDUSTRIE 29
CHAPTER 6.
EXPLANATORY NOTES
PRIMA INDUSTRIE 30
CHAPTER 6. EXPLANATORY NOTES
FORM AND CONTENT
The abbreviated consolidated balance sheet of the PRIMA INDUSTRIE Group on 31/03/2013 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 recognised 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 31/03/2013 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 31/03/2013 of the PRIMA INDUSTRIE Group is presented
in a 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
31/03/2013 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 31/03/2012
with the movements of net assets of the first three 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 31/03/2013 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 31/03/2013 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
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
PRIMA INDUSTRIE 31
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.
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
31/03/2013, 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.
FINANCIAL STATEMENTS
With regard to the financial statements, the group has adopted the choice of using the
statements described below:
� with regard to the Consolidated assets – financial situation, 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 regard to the consolidated profit and loss account, the scheme adopted foresees the
distribution of costs in kind; the comprehensive consolidated profit and loss account
includes, in addition to the profit for the period, as a consolidated profit and loss
account, the other variations of the movement of net assets different from those with
the shareholders;
� with regards to the statement of the variation of net assets, the scheme adopted to
reconcile the opening and closure of each assets item whether for the current period or
for the preceding one;
� with regard to the Financial Report 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 amortizing, devaluations, unrealized profits and
losses on associate companies;
� of the variation of the stock in hand, 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 Management Report was authorized for publication by the Board of Directors on
14/05/2013.
PRIMA INDUSTRIE 32
EXPLANATORY NOTES
The data shown in the explanatory notes, if not shown otherwise, are expressed in Euro.
NOTE 6.1 – TANGIBLE FIXED ASSETS
The tangible fixed assets on 31/03/2013 are equal to 24,242 thousand Euro, a reduction of 102
thousand Euro compared with 31/12/2012.
For greater detail on the subject, see the table below.
Tangible Fixed Assets Land, Building and
constructions
Plants and
Machinery
Industrial and
commercial Equipment
Other tangible
fixed assets
Constructions
in progress TOTAL
Net value as of December 31, 2012 17.263.455 2.123.655 1.856.009 2.454.004 646.811 24.343.934
2013 1st quarter's movements
Increases - 122.214 124.733 299.009 32.032 577.988
Disinvestments - (2.177.022) (5.681) (18.613) - (2.201.316)
Utilization of accumulated depreciation 2.082.478 5.681 17.843 - 2.106.002
Depreciation (138.161) (128.396) (176.136) (218.250) - (660.943)
Tangible fixed assets reclassifications - 16.750 - 10.088 (26.838) -
Differences on exchange rates 43.274 1.967 18.622 12.561 102 76.526
Net value as of March 31, 2013 17.168.568 2.041.645 1.823.229 2.556.642 652.107 24.242.192
NOTE 6.2 – INTANGIBLE FIXED ASSETS
The intangible fixed assets on 31/03/2013 are equal to 151,167 thousand Euro, a reduction of
229 thousand Euro compared with 31/12/2012.
For greater detail on the subject, see the table below. Intagible Assets Goodwill Development costs Other intagible assets TOTAL
Net Value as at December 31 ,2012 102.679.896 22.049.397 26.665.990 151.395.283
2012 1' Q's Movements
Increases/(decreases) - 1.824.205 66.201 1.890.406
Reclassification with Tangible fixed assets - - - -
Depreciation - (1.244.478) (1.054.583) (2.299.061)
Impairment - - - -
Differences on exchanges rates 70.240 99.458 10.326 180.025
Net Value at March 31, 2013 102.750.136 22.728.583 25.687.934 151.166.653 The most significant item is represented by Goodwill, which on 31/03/2013 is equal to 102,750
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.
UNIT GENERATOR OF CASH FLOWS BOOK VALUE GOODWILL
March 31st, 2013
BOOK VALUE GOODWILL
March 31, 2012
PRIMA POWER 97.533 97.489
OSAI (Service) 4.125 4.125
PRIMA ELECTRO NORTH AMERICA 901 875
MLTA 154 154
OSAI UK 37 37
TOTAL 102.750 102.680
PRIMA INDUSTRIE 33
Goodwill (being an asset with an undefined life) is not subject to amortization 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 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, as
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 SHAREHOLDINGS
The value of other Shareholdings on 31/03/2013 amounted to 578 thousand Euro.
Compared to 31/12/2012 the only change was the increase of 11 thousand Euro for a new 19%
stake held by PRIMA INDUSTRIE SpA in the company Lamiera Servizi Srl.
This heading on 31/03/2013 is composed of:
� Electro Power Systems (420 thousand Euro);
� Caretek (42 thousand Euro);
� Fimecc OY (50 thousand Euro);
� Härmämedi Oy (25 thousand Euro)
� Lamiera Servizi Srl (11 thousand Euro)
� other minor shareholdings (30 thousand Euro).
The shareholding in Electro Power Systems and in Caretek are held by PRIMA ELECTRO SpA and
are respectively equal to 2.36% and 15.5%, while the shareholding in Fimecc OY and Härmämedi
Oy are held by FINN POWER OY respectively at 2.4% and 8.33%.
NOTE 6.4 – NON CURRENT FINANCIAL ACTIVITIES
This heading at 31/03/2013 is equal to 110 thousand Euro and is composed as follows:
� A financing arrangement issued by PRIMA ELECTRO SpA to the Caretek company equal to
51 thousand Euro;
� a convertible bond underwritten by PRIMA ELECTRO SpA issued by the affiliated company
Electro Power Systems for 59 thousand Euro; this loan will end on 31/12/2016.
NOTE 6.5 – TAX ASSETS FOR ANTICIPATED TAXES
The tax assets for anticipated taxes are equal to 7,083 thousand Euro, an increase compared
with the preceding financial year of 478 thousand Euro.
This asset has mainly been generated by the temporary difference in the stock in hand, in the
provisions for liabilities and charges and in trade receivables. The accounting statement of the
anticipated taxes has been carried out, only where suppositions of recoverability exist.
With regard to the recoverability of these taxes it should be noted that the Parent Company and
PRIMA ELECTRO have historically realized positive taxable incomes, both for IRES and IRAP
purposes and expect to earn positive taxable incomes in the following financial years also. The
valuation on the recoverability of anticipated taxes take into account the expected profits in
future financial years and furthermore, is supported by the fact that the anticipated taxes
mainly refer to adjusted asset funds and to provisions for risks and charges, for which there is no
expiry. The anticipated taxes on the accumulated claimable losses have been recognised in the
PRIMA INDUSTRIE 34
measure at which it is probable that a future taxable income against which they might be
recovered.
In the light of what has been illustrated, elements such as to modify the preceding valuations
regarding the recoverability of the anticipated taxes have not been experienced.
NOTE 6.6 – INVENTORIES
The following table shows the composition of the stock in hand at 31/03/2013 and at
31/12/2012.
INVENTORIES March 31, 2013 December 31, 2012
Raw materials 27.340.179 24.859.168
Semifinished goods 18.725.479 12.864.798
Finished goods 49.167.830 49.128.450
(Inventories provisions) (6.048.427) (5.768.648)
TOTAL 89.185.062 81.083.768
The stock in hand at 31/03/2013 amounts to 89,185 thousand Euro, net of the warehouse
devaluation fund for totals of 6,048 thousand Euro. The net value of the warehouse stock in
hand on 31/03/2013 shows and increase equal to 8,101 thousand Euro compared with
31/12/2012.
NOTE 6.7 – TRADE RECEIVABLES
The trade receivables on 31/03/2013 amounted to 66,201 thousand Euro and compared to the
previous financial year a decrease was experienced of 4,502 thousand Euro.
Trade Receivables March 31st , 2013 December 31st, 2012
Trade receivalbes from customers 70.168.811 74.827.697
Provisions for bad debts (3.967.963) (4.125.275)
Total Trade Receivables 66.200.848 70.702.422
The decrease in trade receivables between 31/03/2013 and 31/12/2012 reflects the seasonality
of sales and therefore of income. With reference to the bad debt provision no significant
variations are noted in that it was considered that the credit risk was adequately covered by the
assigned fund.
NOTE 6.8 - OTHER RECEIVABLES
The other current receivables on 31/03/2013 are equal to 8,625 thousand Euro and are increased
in comparison with 31/12/2012 by 1,108 thousand Euro and are subdivided as shown in the
following table.
Other Receivables March 31, 2013 December 31 , 2012
Accruals and deferred charges 3.482.662 2.887.901
Ministry Contribution to be received for R&D projects 2.559.685 2.482.773
Advances payments to suppliers 2.044.199 1.386.119
Other receivables 224.500 467.719
Advances to employeEs 313.807 292.220
TOTAL 8.624.853 7.516.732
The other non-current receivables are equal to 25 thousand Euro.
PRIMA INDUSTRIE 35
NOTE 6.9 – OTHER TAX ASSETS
The heading amounts to 5,710 thousand Euro as against 3,840 thousand Euro on 31/12/2012. Tax
assets are represented by VAT credits of 3,908 thousand Euro, a tax credit amounting to 1,048
thousand Euro following the submission of claims for IRES reimbursement (IRAP deductions for
IRES purposes for the years 2007-2011), advances from direct taxes of 509 thousand Euro,
receivables entered by U.S. subsidiaries and German on losses incurred in previous financial
years for 80 thousand Euro and other receivables for minor tax assets for 165 thousand Euro.
With reference to the credit 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 refund (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 under the heading of "Other tax assets".
NOTE 6.10 – NET FINANCIAL POSITION
On 31/03/2013, the net financial position of the Group was negative at 131,038 thousand Euro, a
reduction of 4,759 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 three months of 2013, refer to the financial report for the period.
As required by the Consob communication No. DEM/6064293 of 28/07/2006, the net financial
debt at 31/03/2013 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.
March 31, 2013 December 31, 2012 Variations
A CASH 18.515 24.459 (5.944)
B OTHER CASH ON HAND - - -
C SECURITIES HELD FOR NEGOTIATION - - -
D CASH ON HAND (A+B+C) 18.515 24.459 (5.944)
E CURRENT FINANCIAL RECEIVABLES 450 4.740 (4.290)
F CURRENT BANK PAYABLES 17.347 15.981 1.366
G CURRENT PART OF NON-CURRENT INDEBTEDNESS 38.895 39.574 (679)
H OTHER CURRENT FINANCIAL PAYABLES 810 958 (148)
I CURRENT FINANCIAL INDEBTEDNESS (F+G+H) 57.052 56.513 539
J NET CURRENT FINANCIAL INDEBTEDNESS (I-D-E) 38.087 27.314 10.773
K NON-CURRENT BANK PAYABLES 90.457 96.471 (6.014)
L BOND ISSUED - - -
M OTHER NON-CURRENT FINANCIAL PAYABLES 2.494 2.494 -
N NON-CURRENT FINANCIAL INDEBTEDNESS (K+L+M) 92.951 98.965 (6.014)
O NET FINANCIAL INDEBTEDNESS (J+N) 131.038 126.279 4.759
Values expressed in thousand Euro
PRIMA INDUSTRIE 36
LIQUIDITY
For more detail on the related liquid availability, see the Consolidated Financial Report.
CURRENT FINANCIAL RECEIVABLES
Other Financial Receivables amounted to 450 thousand Euro and refer to the outstanding
receivables from the majority shareholder of WUHAN HUAGONG UNITY of the JV Chinese SUP for
the sale of the 20% stake held by PRIMA INDUSTRIE SpA in JV Chinese, this credit is secured by an
escrow account.
BANK DEBT
The main debt included in the bank debt is the FINPOLAR Financing. This financing, which at
31/03/2013 amounts comprehensively to 121,941 thousand Euro, is subdivided as follows:
� Quota A: medium/long term financing of 20,907 thousand Euro (expiring in February 2015
with a six monthly payment at a constant percentage of capital);
� Quota B: medium/long term financing of 63,272 thousand Euro (expiring in February 2016
with a "bullet" repayment on expiry);
� Quota C1: medium/long term financing of 9,077 thousand Euro (expiring in February 2015
with a six monthly payment at a constant percentage of capital);
� Quota C2: Credit line for anticipated invoices (revolving) used on 31 March 2013 for 8,390
thousand Euro (the credit line is usable for a maximum comprehensive sum of 12,200
thousand Euro for the Group working capital requirements);
� Quota D: credit line for cash of 19,846 thousand Euro (of a maximum capital sum of 20
million Euro);
� on 31/03/2013 matured interest was recorded and not yet liquidated on all the quotas of
the FINPOLAR financing for a comprehensive sum on 449 thousand Euro.
The FINPOLAR financing is for 83,324 thousand Euro expiring beyond 12 months.
Please note that on 04/02/2013, the company has correctly paid the expiring instalment elating
to the FINPOLAR Financing equal to 7,468 thousand Euro, subdivided as follows:
� Capital sum quotas A to C1 for 5,123 thousand Euro;
� Interests for quotas A, B and D for 1,306 thousand Euro;
� Differential on the derivative for 1,039 thousand Euro.
Included in the non-current bank debits are also other bank financing for 864 thousand Euro and
the negative fair value of some derivative financial instruments (IRS - Interest Rate Swap) which
amount comprehensively to 6,269 thousand Euro. The main contracts are those stipulated by
PRIMA INDUSTRIE SpA, in partial cover for the risk of interest rates on the above mentioned
FINPOLAR Financing. The effectiveness test carried out on the covering derivative contracts
highlighted, on 31/03/2013, a report of substantial effectiveness and therefore, as even the
other requirements required by IAS 39 were complied with, they are accounted for using the
"hedge accounting" criterion. The financial instruments, for which the effectiveness test was not
carried out, considering their characteristics, were accounted for through the allocation of the
related fair value variations allocation in the profit and loss account.
Encompassed into the current bank debt (also considering the current part of the non-current
debt) are the FINPOLAR Financing for 38,617 thousand Euro, bank overdrafts for 15,058 thousand
PRIMA INDUSTRIE 37
Euro, other bank financing for 2,263 thousand Euro and financial derivative instruments covering
the exchange risk (Currency Rate Swap) for 304 thousand Euro.
OTHER FINANCIAL PAYABLES
The Other financial payables amount comprehensively to 3,304 thousand Euro (of which 810
thousand are current).
The other financial payables encompass:
� payables for financial leasing for a sum equal to 2,800 thousand Euro (of which 541
thousand Euro are current);
� other financial payables for 504 thousand Euro (of which 269 thousand Euro are current);
these payables refer principally to subsidized ministerial loans.
MOVEMENT OF PAYABLES DUE TO BANKS AND FINANCING
The payables due to banks and the financing of the PRIMA INDUSTRIE Group on 31/03/2013 (not
including the derivatives fair value) are equal to 143,429 thousand Euro and during the first four
months of 2013, they have moved as shown in the following table.
PAYABLES TO BANKS AND BORROWINGS Euro thousand
Payables to banks and borrowings - current portion (December 31, 2012) 56.513
Payables to banks and borrowings - non current portion (December 31, 2012) 91.703
TOTAL TO BANKS AND BORROWINGS as at December 31, 2012 148.216
Change in consolidation area -
Stipulation of loans and borrowings (including banks overdrafts ) 228
Repayment of loans and borrowings (including bank overdrafts) (5.149)
Issuance/(repayment)of financial leases (3)
Exchange rate effect 137
TOTAL DEBTS Vs. BANKS AND BORROWINGS as at March 31, 2013 143.429
of which
Payables to banks and borrowings - current portion (March 31, 2013) 56.748
Payables to banks and borrowings - non-current portion (March 31, 2013) 86.681
TOTAL PAYABLES TO BANKS AND BORROWINGS as at March 31, 2013 143.429
NOTE 6.11 - NON CURRENT ASSETS DESTINED FOR WIND-UP
On 31/03/2013, the value of the non-current assets destined for wind-up is equal to 4,239
thousand Euro.
Non- current assets intended for disinvestment SUP Investments SNK Investments Real Property
Rivalta sul MincioTOTAL
Value at December 31, 2012 3.503.352 83.500 543.000 4.129.852
Currency adjustment 114.739 (5.681) - 109.058
Value at March 31, 2013 3.618.091 77.819 543.000 4.238.910
NOTE 6.12 – NET ASSETS
The net assets of the PRIMA INDUSTRIE Group are increased in comparison to the end of the
previous financial year by 606 thousand Euro. For more detail on the subject, see the movement
of net assets statement.
PRIMA INDUSTRIE 38
NOTE 6.13 – BENEFITS TO EMPLOYEES
The heading Benefits to employees includes: � the Severance Indemnity (TFR) recognized by Italian companies for employees;
� a loyalty 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 STANDARDS")
Employees benefits 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 March 31, 2013 December 31, 2012 restated
Severance indemnity fund 5.962.605 6.036.660
Fidelity premium 1.636.192 1.592.642
TOTAL 7.598.797 7.629.302
NOTE 6.14 – FISCAL LIABILITIES FOR DEFERRED TAXES
The fiscal liabilities for deferred taxes are equal to 10,014 thousand Euro, an increase compared
with the preceding financial year of 718 thousand Euro. It is noted that this heading includes
also fiscal liabilities for deferred taxes 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 6,402 thousand Euro.
NOTE 6.15 – PROVISIONS FOR LIABILITIES AND CHARGES
The provisions for liabilities and charges are equal to 10,577 thousand Euro and are decreased
compared with 31/12/2012 by 987 thousand Euro.
The most significant type is that relating to the Product Guarantee Fund. The guarantee fund
relates to the provisions for technical guarantee interventions on the group's products and is
considered appropriate in comparison to the guarantee costs which have to be provided for.
The non-current risks funds refer exclusively to the agent client indemnity fund and amount
comprehensively to 129 thousand Euro. The current risks funds mainly relate to product
warranties (8,545 thousand Euro, a decrease of 1,029 thousand Euro compared to 31/12/2012).
The other funds refer to legal procedures and other disputes; these funds represent the best
estimate by management of the liabilities which must be accounted for with reference to legal
proceedings occasioned during normal operational activity with regard to resellers, clients,
suppliers or public authorities and also legal proceedings relating to disputes with former
employees.
PRIMA INDUSTRIE 39
NOTE 6.16 – TRADE RECEIVABLES, ACCOUNTS AND OTHER RECEIVABLES
The value of these payables has increased compared with 31/12/2012 by 1,809 thousand Euro. It
is recalled that the client accounts heading contains both the accounts on orders relating to
machines which have not yet been consigned, as well as those generated by the application of
the IAS 18 accounting principle relating to machines already consigned, but not yet accepted by
the end client and therefore not written into revenue. The Other payables heading encompasses
social security and welfare payables, payables due to employees, accruals and deferrals and
other minor payables.
For greater detail on the subject, see the table below.
Trade payables, advances and other payables March 31, 2013 December 31, 2012
Trade payables 68.764.731 72.403.779
Advances 21.109.056 16.991.891
Other payables 18.996.739 17.665.682
TOTAL 108.870.525 107.061.351
NOTE 6.17 – FISCAL LIABILITIES FOR CURRENT TAXES
The fiscal liabilities for current taxes on 31/03/2013 are equal to 4,908 thousand Euro, a
reduction of 2 thousand Euro compared with 31/12/2012.
NOTE 6.18 – NET INCOME FROM SALE OF SERVICES
The income from the sale of services have been increased and commented on at chapter 3 of
this document "Interim Report on Management" in the paragraph "Income and Profitability".
NOTE 6.19 – OTHER OPERATIONAL INCOME
The other operational income amounts to 803 Thousand Euro and refers principally to
contributions for research and development activity received by public bodies or following
cooperation with other industrial companies.
NOTE 6.20 – INCREASES DUE TO INTERNAL WORK
The increase is due to internal work on 31/03/2013 amount to 1,925 thousand Euro and refer
mainly to the capitalisation of new project development activity (1,824 thousand Euro), of which
the technical feasibility has been verified and the generation of probable future economic
benefits. The capitalised 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 31/03/2013 is equal to 22,919 thousand Euro and shows an increase
compared with the corresponding period of the previous financial year of 358 thousand Euro.
NOTE 6.22 – AMMORTIZATION
The amortisation at 31/03/2013 is equal to 2,960 thousand Euro (of which 2,299 thousand Euro
are related to intangible fixed assets). It is opportune to highlight that the amortisation relating
to the trademark and relationships with clients ("customers list") amount to a comprehensive 752
thousand Euro, while those relating to development costs are equal to 1,244 thousand Euro.
PRIMA INDUSTRIE 40
NOTE 6.23 – OTHER OPERATIONAL COSTS
The other operating costs for the first three months of 2013 amounted to 17,377 thousand Euro
compared with 17,417 thousand Euro at 31/03/2012.
NOTE 6.24 – FINANCIAL INCOME AND CHARGES
The financial management of the first three months of 2013 shows a negative result of 2,373
thousand Euro.
Financial Management March 31, 2013 March 31, 2012
Financial income 155.100 41.853
Financial costs (2.465.416) (1.948.707)
Net result deriving from transctions in foreign currency (62.892) (318.239)
TOTAL (2.373.208) (2.225.093)
The financial burdens relating to the FINPOLAR Financing sustained by PRIMA INDUSTRIE are
equal to 897 thousand Euro, while the financial burdens on the derivatives stipulated by the
group are equal to 779 thousand Euro.
NOTE 6.25 – CURRENT AND DEFERRED TAXES
The taxes on income for the first three months of 2013 show a net negative balance of 111
thousand Euro (of which IRAP (Regional income tax) is equal to 341 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 6.26 – 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 three months of 2013, the average shares in circulation is equal to 8,643,190;
therefore the earnings per share in the first three months of 2013 amounted to a loss of 0.09 per
share (as against a loss of 0.20 Euro per share compared with the first three months of 2012).
BASIC PROFIT PER SHARE March 31, 2013 March 31, 2012
Profit due to shareholders (Euro/000) (803) (1.752)
Weighted average number of ordinary shares 8.643.190 8.640.696
Basic profit per share (Euro) (0,09) (0,20)
(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.
PRIMA INDUSTRIE 41
DILUTED RESULT PER SHARE March 31, 2013 March 31, 2012
Profit due to shareholders (Euro/000) (803) (1.752)
Weighted average number of ordinary shares 8.643.190 8.640.696
Corrected average number of ordinary shares 10.981.512 10.982.000
Diluted result per share (0,07) (0,16)
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 (i.e.,
the loss arising from the dilutive calculation is less than the base loss).
NOTE 6.27 – INFORMATION SHEET ON CO-RELATED PARTIES
Transactions with co-related parties concern the relationships with strategic management and
the Board of Auditors.
OPERATIONS WITH ASSOCIATES STRATEGIC MANAGEMENT BOARD OF STATUTORY AUDITORS TOTAL
RECEIVABLES AS OF AL 01/01/2013 487.474 105.000 592.474
PAYABLES AS OF 31/03/2013 309.958 131.250 441.208
COSTS 01/01/2013 - 31/03/2013 332.689 26.250 358.939
VARIATIONS IN PAYABLES
01/01/2013 - 31/03/2013 (177.516) 26.250 (151.266) NOTE 6.28 – 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
PRIMA INDUSTRIE 42
The principal sector details are supplied below.
Profit for segment March 31, 2013 PRIMA POWER PRIMA ELECTRO Not allocated items TOTAL
Total revenues for segment 60.833 15.888 - 76.721
(Inter-sectorial revenues) (14) (3.826) - (3.840)
Revenues 60.819 12.062 - 72.881
EBITDA 2.223 2.419 - 4.642
EBIT (239) 1.921 - 1.682
Net financial cost/income (2.179) (194) - (2.373)
Income/costs from affiliates and joint venture (1) - - (1)
Profit before taxes - - - (692)
Taxes - - (111) (111)
Net result - - - (803)
The EBIT and EBITDA values represented here are not directly reconcilable with those shown in Chapter 4 -
ECONOMICAL PROGRESS BY SECTOR, as they are presented net of inter-sector items.
Assets and liabilities for segment March 31, 2013 PRIMA POWER PRIMA ELECTRO Not allocated items TOTAL
Assets 277.800 62.188 31.868 371.856
Affiliates, J/V and other equity invesments(*)
3.812 462 - 4.274
Total Assets 281.612 62.650 31.868 376.130
Liabilities 109.935 17.111 164.925 291.971
Profits for segment March 31st, 2012 PRIMA POWER PRIMA ELECTRO Not allocated items TOTAL
Total revenues for segment 59.635 14.407 - 74.042
(Inter-sectorial revenues) (7) (4.167) - (4.174)
Ricavi 59.628 10.240 - 69.868
EBITDA 1.921 2.192 - 4.113
EBIT (204) 1.765 - 1.561
Net financial cost/income (1.843) (382) - (2.225)
Income/costs from affiliates and joint ventures (228) - - (228)
Profit before taxes - - - (892)
Taxes - - (860) (860)
Net Profit - - - (1.752)
Assets and liabilities for segment March 31st, 2012 PRIMA POWER PRIMA ELECTRO Not allocated items TOTAL
Assets 300.271 60.050 28.026 388.347
Affiliates, J/V and other equity investments 8.629 848 - 9.477
Total assets 308.900 60.898 28.026 397.824
Liabilities 124.473 21.000 174.872 320.345
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 6.29 – 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.
PRIMA INDUSTRIE 43
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.
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:
PRIMA INDUSTRIE 44
� "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.
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-fulfilment 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
PRIMA INDUSTRIE 45
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.
NOTE 6.30 – SUBSEQUENT EVENTS
Factors subsequent to the reference date of the Interim Management Report which, if not
previously noted, would have incurred an adjustment to the relevant values, have not been
noticed.
Signature of the authorized governing body
_____________________________
PRIMA INDUSTRIE 46
CERTIFICATION OF THE CONSOLIDATED FINANCIAL STATEMENTS AT 31/03/2013
Declaration pursuant to article 154-bis, paragraph 2 of Part IV, Title III, Chapter II, Section
V bis of Legislative Decree of February 24, 1998, no. 58: Consolidated Law on Financial
Intermediation, pursuant to Articles 8 and 21 of the Law of February 6, 1996, No. 52.
The manager responsible for preparing the company accounting documents of the PRIMA
INDUSTRIE Group, Massimo Ratti, declares, in accordance with the provisions of the second
paragraph of Art. 154 bis, Part IV, Title III, Chapter II, Section V bis of Legislative Decree of
February 24, 1998, No. 58, that the accounting information contained in this Interim Financial
Report corresponds to the document results, books and accounting records.
