Compagnia Immobiliare Azionaria : Board of Directors approves draft separate and consolidated financial statements for 2016. Revenues of 8.52 million euro (+66.3%). EBITDA up from 1.81 to 4.90 million euro. Parent company closes with net profit of 0.98 million euro

Board of Directors approves draft separate and consolidated financial statements for 2016 Revenues of 8.52 million euro (+66.3%) EBITDA up from 1.81 to 4.90 million euro Parent company closes with net profit of 0.98 million euro

Milan, 22 March 2017

The Board of Directors of CIA met on 22 March and approved the draft separate and consolidated financial statements for 2016.

Consolidated revenues for the year ended 31 December 2016 amounted to 8.52 million euro, compared with 5.12 million euro in the prior year. The increase of 66.3% was principally attributable to the capital gain realised on the disposal of the office premises in Manhattan, New York.

In the vineyard sector, the sales of Feudi del Pisciotto almost tripled compared with the prior year, following increased volume (+84%) and the steady rise in average prices (+25%). In particular, the growth in sales was generated by the Export channel, due to the long-term contracts signed with Chinese importers and the continued improvement in brand awareness, which is facilitated by the excellent ratings regularly awarded by international wine critics. Broadly in line with the trend in Sicily, the 2016 harvest was marked by the excellent quality of the grapes, but also by a 19% reduction in their volume with respect to the prior year. This was due to a lack of rain, combined with average temperatures that were much higher than usual.

Operating costs amounted to 3.61 million euro (3.31 million euro in 2015). Gross operating profit (EBITDA) increased from 1.81 million euro to 4.90 million euro.

Net non-core charges totalled 0.49 thousand euro (income of 2.58 million euro in 2015). After depreciation, amortisation and write-downs of 5.4 million euro (5.2 million euro in 2015), the loss attributable to the Group was 1.64 million euro (1.44 million euro last year).

The consolidated net financial position has improved from net borrowing of 46.12 million euro at 31 December 2015 to 44.14 million euro at 31 December 2016.

The disposal of the office premises in Manhattan, New York, during December enabled the Company to realise a substantial capital gain (2.77 million euro). The sale took advantage of the exponential growth of the property market in New York, which has elevated the entire sector to the peaks seen prior to the 2008 financial crisis.

With regard to the investments held in office premises in Milan, the tenants continue to apply strong pressure for additional rent revisions, despite the reductions already granted. Property sales are suspended due to the dispute between Diana Bis Srl, owner of the residential property at via Borgazzi 1/3/5, Milan, and the Corso Italia 66-68 condominium. There have not been any significant developments in this case.

• Development and investment activities

  • The restaurant within the Feudi del Pisciotto complex in Sicily was inaugurated on 1 May 2016 and the installation of a small spa has been completed, while work has almost finished on a cookery school (for which a partnership agreement with LeCirque has already been

    signed), which will complete this phase of investment in the Wine Relais. The comments made by guests all continue to be positive, with top ratings in most cases (sources: Booking.com and TripAdvisor).

    • A project has been finalised for the construction of additional rooms and suites in a portion of the ancient fortified farmhouse owned by Feudi del Pisciotto, with a view to consolidating and strengthening the facilities currently offered by the Wine Relais. The start of work depends on admission to the European calls for projects to be published in the coming months and on sourcing the 50% investment for which the company is responsible.

    • Planning work continues on the Island of Levanzo (Sicily) for development of the property owned by Agricola Florio Srl, with a view to balancing the rural identity of the area with its importance for tourism, by making decisions that reflect the values of Rural Tourism.

Performance of the parent company

Revenues for the year ended 31 December 2016 amounted to 5.86 million euro, up from 3.04 million euro in 2015. Operating revenues totalled 2.98 million euro (2.76 million euro in the prior year), while other operating income - including the capital gain on the disposal of the New York premises - amounted to 2.88 million euro (0.28 million euro in 2015).

Operating costs of 2.02 million euro compare with 1.58 million euro in the prior year. Gross operating profit (EBITDA) was 3.84 million euro, which represents a sharp rise with respect to last year (1.46 million euro).

Pre-tax profit for the year was 2.18 million euro, while net profit was 0.98 million euro (2.88 million euro for the year ended 31 December 2015).

Shareholders' equity totals 12.16 million euro, compared with 11.39 million euro at 31 December 2015.

Consolidated reclassified statement of comprehensive income:

€uro/000	31/12/15	31/12/15 Reclass.*	31/12/16	Change (%)
Revenues from sales	6,762	5,120	8,516	66.3
Operating costs	(4,952)	(3,310)	(3,612)	9.1
Gross profit	1,810	1,810	4,904	170.9
% of revenues	26.8	35.4	57.6
Non-core income (charges), net	2,582	2,582	(489)	(118.9)
Depreciation and amortisation	(5,205)	(5,205)	(5,393)	3.6
Operating result	(813)	(813)	(978)	(20.3)
% of revenues	(12.0)	(15.9)	(11.5)
Financial income (charges), net	(2,322)	(2,322)	(2,102)	(9.5)
Profit/(loss) before tax	(3,135)	(3,135)	(3,080)	(1.8)
Taxes	73	73	(468)	n.s.

(Profit)/loss attributable to NCIs	1,621	1,621	1,904	17.5
Result attributable to owners of the parent	(1,441)	(1,441)	(1,644)	(14.1)
Components of comprehensive income for the year	1,225	1,225	(4)	n.s.
Comprehensive result attributable to owners of the parent	(216)	(216)	(1,648)	n.s

Revenues are analysed as follows:

€uro/000	31/12/15	31/12/15 Reclass.*	31/12/16	Change (%)
Rental income	2,635	2,635	2,853	8.3
Facility management revenues	731	731	731	-
Wine sale revenues	842	842	1,922	128.3
Change in vineyard inventories of semi-finished and finished products	-	498	(482)	n.s.
Other vineyard and Wine Relais revenues	902	377	492	30.5
Property sale revenues	1,260	1,260	2,861	127.1
Change in residential property inventories	-	(1,615)	(130)	92.0
Other revenues	392	392	269	(31.1)
Total operating revenues	6,762	5,120	8,516	66.3

Outlook for operations

The macroeconomic situation means that the prospects for economic growth remain very uncertain, while the financial markets remain highly volatile, especially in Italy, with signs of a slowdown in consumption despite a gradual improvement in employment levels.

The principal markets in which the Group operates are however showing certain timid signs of recovery that, based on the projections, might reduce the current economic-financial imbalance with respect to the financial commitments made. The outlook for continuing operations is therefore positive overall, especially considering the further special transactions that might be carried out and continued expansion of the commercial operations of Feudi del Pisciotto.

Con vocat ion of the Shareholders' Meeting

A Shareholders' Meeting has been called in ordinary and extraordinary session for 28 April 2017, at

9.30 a.m. in the conference room at Via Marco Burigozzo 5, Milan, and, if a second calling is necessary, for 2 May 2017 at the same place and time.

Report on Remuneration

The Board has approved the Report on Remuneration pursuant to art. 123-ter of Decree no. 58/1998.

Verification that the independence requirements for directors and statutory auditors are met

The Board of Directors has verified the independence requirements placed on Maurizio Carfagna, Giovanni Battista Cattaneo della Volta, Vincenzo Manes, Andrea Morante and Maria Grazia Vassallo, all of whom are directors, as are the independence and honourability requirements placed on the members of the Board of Statutory Auditors.

Declaration of the Responsible Executive

The executive responsible for preparing the corporate accounting documents of Compagnia Immobiliare Azionaria S.p.A., Walter Villa, hereby certifies that the accounting information contained in this document is consistent with the underlying documents, registers and accounting entries.

The separate and consolidated income statements, statements of financial position, statements of cash flows and net financial position are attached to this press release.

The report on operations will be made available to the public on the website of Cia, www.c-i-a.it, prior to the legal deadline.

Consolidated statement of comprehensive income for the year ended 31 December 2016

(thousands of euro)	31 December 2015	31 December 2016
Revenues	5,659	5,853
Other revenues and income	578	3,275
Change in inventories of semi-finished and finished products	(1,117)	(612)
Total revenues	5,120	8,516
Purchases	(550)	(535)
Services	(1,710)	(1,739)
Payroll costs	(589)	(559)
Other operating costs	(464)	(772)
Investments measured at equity	3	(7)
Total operating costs	(3,310)	(3,612)
Gross operating result - EBITDA	1,810	4,904
Net non-core income/(charges)	2,582	(489)
Depreciation, amortisation and writedowns	(5,205)	(5,393)
Operating result - EBIT	(813)	(978)
Net financial income/(charges)	(2,322)	(2,102)
Pre-tax profit (loss)	(3,135)	(3,080)
Taxes	73	(468)
Net profit/(loss)	(3,062)	(3,548)
(Profit)/Loss attributable to non-controlling interests	1,621	1,904
Result attributable to owners of the parent	(1,441)	(1,644)
Other components of comprehensive income
Actuarial income/(charges) not recorded in income statement (IAS 19)	(2)	(4)
Remeasurement of land	1,227	--
Taxes on other components of comprehensive income	--	--
Total components of comprehensive income, net of tax effect	1,225	(4)
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO THE GROUP	(216)	(1,648)
Basic earnings per share	(0.00)	(0.02)
Diluted earnings per share	--	--