Targetti news - FINANCE - Targetti Group: The Board of Directors approved the consolidated results as at 31/12/2004.

Consolidated turnover at 152.9 million Euros ( up16.0% over 2003*);
Upturn in EBITDA (+25.4%) and EBIT (+46.6%);
The consolidated pre-tax profits of 13.1 million Euros (+66.3%).

The Board of Directors of Targetti Sankey S.p.A., meeting today in Florence, approved the consolidated results for the fourth quarter of 2004.

Primary consolidated results for 2004

In 2004 the Group’s consolidated turnover amounted to 152.9 million Euros, equivalent to an increase of 16.0% (as compared with the 131.8 million Euros of the corresponding period of 2003), 15.2% of which can be attributed to organic growth and 0.8% to the different consolidation area.

This growth was spurred by increased turnover increasing in all sectors of activity: architectural lighting (+7.9%), which accounts for 56.6% of total turnover, exterior public lighting (+23.4%) and light sources (+45.0%).

Turnover was up in all major countries of reference; 46.3% was realized in Italy (48.4% in 2003), 30.4% in other EU countries, and 23.3% in countries outside the EU.

EBITDA amounted to 21.0 million Euros, up 25.4% over the 16.8 million Euros of 2003, and accounted for 13.8% of turnover (as compared with 12.7% in 2003).

On like for like basis, EBITDA showed a 26.1% increase with respect to the previous year.

EBIT reached 15.0 million Euros, showing a 46.6% increase over the 10.2 million Euros of 2003.

Consolidated pre-tax profits amounted to 13.1 million Euros, compared to 7.9 million Euros in 2003 (+66.3%).

Assets and liabilities as at 31 December 2004

The net financial position amounted to 21.8 million Euros as at 31 December 2004, a clear improvement as compared with 24.8 million Euros as at 31 December 2003 and with 25.2 million Euros as at 30 September 2004, which was due to the positive trend in cash flow.

At the same date, net equity stood at 61.4 million Euros, an upturn as compared with the 49 million Euros of 31 December 2003 and with the 56.6 million Euros of 30 September 2004, thanks to a 3.5 million Euro profit for the period and to a capital increase of 1.4 million Euros.

As at 31 December 2004 the parent company Targetti Sankey S.p.A. holds 131,694 own shares, amounting to 0.72% of the equity.

Principal consolidated results of the fourth quarter (October-December)

In the fourth quarter of 2004, the best of the year, Targetti recorded a consolidated turnover of 41.1 million Euros, a 9.5% increase with respect to the 37.6 million Euros of the fourth quarter of 2003; had the consolidation area been the same the increase would have been of 12.4%.

The same period saw EBITDA reach 6.3 million Euros (+16.4% as compared with 2003; +19.9% on like for like basis), while EBIT amounted to 4.8 million Euros (+38.8% as compared with the previous year).

The pre-tax profit amounted to 3.5 million Euros, a 9.1% increase with respect to the 3.2 million Euros of the fourth quarter of 2003.

Comments of the Managing Director

“2004 was a very satisfying year – stated Lorenzo Targetti, Managing Director of Targetti Sankey S.p.A. – during which we saw growth in all sectors of activity, despite an economic situation which was still uncertain, and we achieved important results in terms of profitability. It was the reward for a development model aimed at making the most of the individual companies’ specializations in different lighting segments, the same strategy which led to the recent acquisition of A2”.

“We are cautiously optimistic about the prospects for 2005 - continued Lorenzo Targetti - a year in which we hope to strengthen and consolidate the results achieved in 2004 and to see further recovery in terms of profit margins, due in part to the benefits from recent measures taken to increase industrial efficiency, such as relocating the plant of the subsidiary Exterieur Vert from France to Italy, in the Holding production plants.”

The primary consolidated economic and financial data contained in the quarterly report approved today by the Board of Directors are attached to this press release.

The quarterly report approved today will be available at company headquarters and at the Italian Stock Exchange as of tomorrow. On the same day it will be published on the company website, http://www.targetti.com/. This press release is also available on the website as of today.

Targetti Sankey S.p.A. are among the leading industrial groups in Europe in the indoor and outdoor lighting sector. A network of nine highly specialized companies that draws its strength from a long history and a natural vocation for research. Thanks to the perfect synthesis of technology and design, Targetti equipment lights universal masterpieces of art like Michelangelo’s David, Leonardo da Vinci’s Last Supper and Notre Dame Cathedral, and finds application in a wide range of other environments: from the Opera House in Singapore to the airports of Madrid, Canton; from the showrooms of Bulgari, Benetton, Celine, Diesel to the Formula 1 boxes of Ferrari and McLaren; from corporate companies like Peugeot, Citroën, Alfa Romeo to the world’s most prestigious hotel chains. And the more than 4000 small and large urban centres where lighting … means Targetti.

Contact: Marco Cisbani

Targetti Sankey S.p.A

Tel.: 055/37.91.203

Massimiliano Parboni

Barabino&Partners

Tel.: 06/679.29.29

*The consolidation area included the stakes in Hangzhou Duralamp Electronics Co. Ltd. and Ningbo Si Kang International Trading Co. Ltd., which in 2003 were consolidated for only the last four months of the year. Moreover, 2004 does not include the 50% of Tivoli LLC, which was completely consolidated in 2003 as it was absorbed by Targetti North America Inc.

Targetti Group: The Board of Directors approved the consolidated results as at 31/12/2004.

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