Ital TBS : TBS Group: the Board of Directors approves the interim financial report as of 30 September 2015

PRESS RELEASE

• Consolidated revenue of 171.8 million euro, up 3.6 million compared to 30 September 2014 (+2.1%)
• EBITDA of 16.6 million euro, up 1.1 million versus the same period in 2014 (+7.0%)
• EBIT of 8.1 million euro, -0.1 million versus 30 September 2014 (-1.0%)
• Net result for the first nine months of 2.4 million euro, +1.2 million versus the same period in 2014
• Net financial debt of 89.8 million euro, up 27.2 million compared to 31 December 2014

  
  

  - Data not subject to auditing or inspection by the board of statutory auditors -

  Data referring to the period 01/01-30/09 2014 restated in compliance with IFRS 5 Discontinued operations following the loss of the majority share in the company SLT S.r.l.

  
  

  Main consolidated economic results

  
  

  The Board of Directors of TBS Group, a company listed on AIM Italia, has approved on a voluntary basis the interim report as of 30thSeptember 2015, which records a growth for the main economic indicators: revenue, EBITDA, and net result.

  In particular, as of 30thSeptember 2015 the total revenue amounted to 171.8 million euro, with a growth of 3.6 million versus 168.2 in the same period of 2014, thus reporting an increase of 2.1%.

  Analysis of the revenues by business areas highlights the following results:

• Revenue from the 'Medical Devices and ICT Systems' Division reported a growth of 2.7 million euro, from 145.5 million as of 30thSeptember 2014 to 148.2 million in the same period of 2015 (+1.9%), which represents 86.3% of the Group's total revenue (86.5% in

  2014).

• The 'e-Health & e-Government Integrated Solutions' Division reported a growth in revenues, which went up from 22.7 million as of 30thSeptember 2014 to 23.6 million euro in the same period of 2015 (+4.0%) and accounted for 13.7% of the Group's total

revenue (13.5% in 2014).

Analysis of the revenues by geographical area confirms that Europe is the main market for TBS Group's business, accounting for 98.2% versus 1.8% in the extra-European countries. Italy still represents the main market holding a share of 69.2%

Consolidated EBITDA settled at 16.6 million euro, reporting an increase versus 15.6 million in the third quarter of 2014 (+7.0%). The improvement in the overall profitability versus 2015 was achieved even though the planned contribution from the engineering, global supply and maintenance of devices under the international tender agreements failed to materialise.

The EBIT was equal to 8.1 million euro, substantially in line with 2014's third quarter; the increase in depreciations over the term was due to an increase in investments, also following the new acquisitions carried out.

The financial management of the period showed substantially stable results, despite the increase in the expenses due to the worsening of the net financial debt, counterbalanced by the higher income of the period.

The amount of taxes went down by 0.7 million euro, mainly owing to the cuts in the IRAP [Regional Productivity Tax] based on the full deduction of labour costs for new employees hired on an indefinite-term basis.

The third quarter reported a positive net result of 2.4 million euro, with a marked growth versus

1.2 million euro in the same period of 2014, considering the contribution from the businesses bound to be sold, which is equal to 0.6 million euro.

'The main indicators in the P&L statement - said the CEO, Paolo Salotto- have confirmed the uninterrupted trend of recovery in profitability by TBS Group. In particular, the increase in the net result marks a significant business improvement versus 2014. The growth in the NFP, aside from suffering from the application of the split payment legislation, has been mainly connected to the acquisitions we have recently carried out in Italy with Ing. Burgatti in the DI area, and in France with Crimo France in the operating theatre services area. The working capital has

basically remained stable, moving from 81.4 million euro as of 31stDecember 2014 to 84.5 million euro as of 30thSeptember 2015.'

'Though the government's healthcare expenditure is still being contained in our country - added the CEO -we have proved to be able to handle the situation in terms of organisation and sales. However, the greatest rewards have come from the international context, which shows promising prospects also for the future. The 5-year clinical engineering contract - with an additional two-year optional term - that we have been awarded in the past few days in the Indian state of Andhra Pradesh is a confirmation that our know-how, our international network, and the TBS brand are extremely solid.'

Financial situation as of 30thSeptember 2015

The net financial debt as of 30thSeptember 2015 is equal to 89.8 million euro, with an increase of 27.2 million versus 62.5 million euro at the end of FY 2014; the increase is mainly due to the payment of the price for the take-over of Crimo France and a 51% share of the company Burgatti, as well as the valorisation of the related Put&Call under the agreement, and the incorporation of the financial debt of the company itself and of the variation in the net working capital.

The considerable increase in the net working capital, equal to 18.4 million euro, still versus the previous FY, can be ascribed to the enforcement of the 'split payment' legislation, which has significantly affected the other current assets and liabilities that have decreased by 15.3 million euro versus the end of 2014; the working capital has remained substantially stable, moving from

81.4 million euro (35.1% of total revenues) as of 31stDecember 2014 to 84.5 million euro as of 30thSeptember 2015 (35.9% of total revenues).

Main events of the third quarter 2015 and relevant subsequent events

On 4thAugust, Ing. Burgatti's minority shareholders exercised their right - in compliance with the company's contract of sale - to the intermediate put option for the sale of a 14% share of the company. The transaction was completed on 22ndOctober 2015 with a sale price of

€684,000.

On 4thNovember, the company TBS India, a wholly-owned subsidiary, was awarded a contract by the Indian state of Andhra Pradesh for the provision of assistance and maintenance services for over 33,000 biomedical devices used in about 1,400 hospital facilities across the territory.

TBS India's offer was the best out of the five submitted in the tender procedure. The overall value of the assets TBS shall take care of is estimated to be 4.5 billion Indian rupees, which is equal to 62.9 million euro, at the current exchange rate. The purchase order related to the first year has already been delivered and amounts to 5.3 million euro (382.2 million Indian rupees), including taxes.

TBS Group, listed on the AIM Italia, designs and manages outsourced clinical engineering and ICT services, designs and provides integrated e-Health and e-Government solutions and integrated systems of medical equipment, in order to make the use of biomedical and ICT technologies safer and more effective. The Group's offer is aimed at innovating processes in the health and social facilities, both public and private, and at reclassifying costs of services supplied. With registered offices in Trieste at AREA Science Park and revenues totaling 232.1 million euros in 2014, the Group is present in 20 countries and operates with about 2,400 employees, in over 20 specialist centres and in more than 300 on site workshops linked to over 1,000 hospitals and other public and private bodies.

For further information: www.tbsgroup.com

TBS Group S.p.A. Investor Relator Stefano Beorchia tel.:+39 040 92291

ir@italtbs.com

TRIESTE, 13thNovember 2015

This press release is an English translation of an Italian language version. In the event of any inconsistency or interpretation difficulties reference should be made to the original press release in Italian language, which shall in any event prevail.

CONSOLIDATED INCOME STATEMENT - TBS Group

(*) Data restated in compliance with IFRS 5 Discontinued operations following the loss of the majority share in the company SLT S.r.l.