pininfarina group interim financial report at 31 march 2019 · 8 design segment in addition to the...

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(Translation from the Italian original which remains the definitive version)

PININFARINA GROUP

Interim financial report at 31 March 2019

Pininfarina S.p.A. - Share capital €54,287,128 fully paid-up - Registered office in Turin, Via Bruno Buozzi 6

Tax Code and Turin Company Registration no. 00489110015

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The Board of Directors approved this interim financial report at 31 March 2019 on 13 May 2019.

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Board of Directors

Chairman * Paolo Pininfarina (4)

Chief Executive Officer Silvio Pietro Angori (4)

Directors Manoj Bhat

Romina Guglielmetti (2) (3)

Chander Prakash Gurnani

Jay Itzkowitz (1) (2) (3)

Licia Mattioli (1) (2)

Sara Miglioli (3)

Antony Sheriff (1)

(1) Member of the Nomination and Remuneration Committee

(2) Member of the Control and Risk Committee

(3) Member of the Committee for Transactions with Related Parties

(4) Responsible for the Internal Control and Risk Management System

Board of Statutory Auditors

Chairman Massimo Miani

Standing Statutory Auditors Antonia Di Bella

Alain Devalle

Alternate Statutory Auditors Luciana Dolci

Fausto Piccinini

Secretary to the Board of Directors and Manager in charge of financial reporting Gianfranco Albertini

Independent Auditors KPMG S.p.A.

*Powers Pursuant to article 22 of the bylaws, the Chairman is the parent’s legal representative vis-à-vis third parties and in court proceedings.

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CONTENTS

Directors’ report page 7

Operating and financial performance page 7

Group companies page 9

Reclassified income statement page 10

Reconciliation between the parent’s loss and equity and consolidated profit and equity

page 11

Reclassified statement of financial position page 12

Net financial debt page 12

Net financial debt (Consob) page 13

Pininfarina Group – Condensed interim consolidated financial statements

31 marzo 2017?

page 15

Statement of financial position page 16

Income statement page 18

Statement of comprehensive income page 19

Statement of changes in equity page 20

Statement of cash flows

page 21

Notes to the condensed interim consolidated financial statements page 22

Other information page 47

Pininfarina S.p.A. – Interim separate financial statements page 51

Statement of financial position page 52

Income statement page 54

Statement of comprehensive income page 55

Reclassified income statement page 56

Reclassified statement of financial position page 57

Net financial debt page 57

Statement of changes in equity page 58

Statement of cash flows page 59

Other information page 60

7

Pininfarina Group

Directors’ report

Operating and financial performance

The most significant issues that arise from a comparison of the Q1 2019 and Q1 2018 consolidated financial figures are as follows:

- revenue decreased by 11% mainly due to the smaller contribution of the Italian engineering services and royalties on the use of the trademark;

- the gross operating profit and operating profit both deteriorated to 7% and 3% of revenue, respectively (14% and 11% in the corresponding period of 2018, respectively);

- the German group companies improved their profits on Q1 2018, the Chinese and US operations were stable while the contribution of the Italian companies decreased;

- equity at the reporting date increased compared to 31 December 2018, mainly due to the profit for the period. The Group recorded net financial debt at the reporting date compared to a net financial position at the end of 2018, due to the FTA of IFRS 16 (applicable from 1 January 2019), which entailed the recognition of a financial liability equal to the present value of the right-of-use asset. Had the Group not applied the new standard, it would have recorded a net financial position of roughly €0.3 million at 31 March 2019.

Specifically:

- revenue came to €25.2 million for the reporting period compared to €28.4 million for the corresponding period of 2018 (-11%);

- the gross operating profit decreased to €1.8 million from €4.1 million for the first three months of 2018. The operating profit amounted to €0.7 million, compared to €3.1 million in the corresponding period of the previous year;

- net financial expense came to €0.2 million, showing an improvement compared to €0.6 million in the corresponding period of the previous year. The profit for the period is €0.4 million, compared to €2.1 million for the first three months of 2018.

As a result of the FTA of IFRS 16 mentioned above, the group recognised net financial debt of €6.8 million compared to a net financial position of €5.2 million at 31 December 2018.

Equity increased from €61.7 million at 31 December 2018 to €62.5 million.

The headcount increased by 11.9% (+74 units) from 622 at 31 March 2018 to 696 at the reporting date.

Performance by business segment

The Pininfarina Group was involved in a number of corporate transactions during 2018, aimed at

streamlining and rationalising the various services offered and grouping them into dedicated legal

entities. Pininfarina S.p.A. transferred its engineering business unit and 100% investment in

Pininfarina Deutschland Holding GmbH (active in the German engineering market) to Pininfarina

Engineering S.r.l., which was incorporated in May 2018. Moreover, with effect from 1 January 2019,

Pininfarina Extra S.r.l., which engages in non-automotive design and architecture activities, was

merged into Pininfarina S.p.A., which also acquired the 100% investment in Pininfarina of America

Corp, a company active in the architecture and industrial design market. In addition, the Group

progressively reduced its non-core operations, such as the sale of spare parts (for cars

manufactured in the past up to 2010) and other activities. Starting from 2019, the breakdown of the

Group’s operations into business segments has changed as a result of the variations described

above. In line with IFRS 8, the Group has identified two new business segments: Design and

Engineering. The 2018 figures have been reclassified accordingly.

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Design segment

In addition to the revenue on the automotive and non-automotive design activities of all kinds, this segment includes revenue from architecture services, royalties for the use of the Pininfarina trademark, revenue from aerodynamic and aeroacoustic services and the income and costs arising from the parent’s property management. It recognised revenue of €15.1 million, which is substantially in line with the first quarter of 2018.

Its operating profit came to €0.4 million, down by €2.1 million on the Q1 2018 figures, mainly due to the smaller volumes and profits on the manufacturing of prototypes and show cars.

Engineering segment

This segment, comprising the Italian and German engineering businesses, recognised revenue of €10.1 million (€13.2 million in Q1 2018).

Its operating profit decreased to €0.3 million from €1 million in the corresponding period of 2018, due to the reduction in revenue in Italy.

Outlook for 2019

The Group is expected to consolidate the results achieved for 2018, although with reduced revenue

and operating profit. It still plans to reduce its gross financial debt.

13 May 2019

Chief Executive Officer (Silvio Pietro Angori) (signed on the original)

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Group companies Pininfarina S.p.A.

€’million 31.03.2019 31.03.2018 Variation 31.12.2018

Revenue 13.2 19.5 (6.3)

Operating profit 0.1 2.3 (2.2)

Profit (loss) for the period (0.1) 1.7 (1.8)

Net financial position (debt) (1.8) 8.5 (10.3) (0.1)

Equity 70.6 61.8 8.8 66.2

Employees (no.) 247 313 (66) 205

Pininfarina Engineering S.r.l.


Revenue 6.1 0.0 6.1

Operating profit 0.4 0.0 0.4

Profit for the period 0.3 0.0 0.3

Net financial position (debt) (0.1) 0.0 (0.1) 1.9

Equity 17.5 0.0 17.5 17.1

Employees (no.) 153 0 153 129

Pininfarina Deutschland Group


Revenue 6.3 5.2 1.1

Operating loss (0.1) (0.4) 0.3

Loss for the period (0.2) (0.4) 0.2

Net financial debt (6.2) (0.6) (5.6) (0.2)

Equity 16.8 17.8 (1.0) 17.0

Employees (no.) 239 232 7 234

Pininfarina Shanghai Co Ltd


Revenue 2.5 1.5 1.0

Operating profit 0.4 0.4 0.0

Profit for the period 0.4 0.1 0.3

Net financial position 1.1 0.6 0.5 1.3

Equity 2.5 1.1 1.4 2.1

Employees (no.) 42 35 7 40

Pininfarina of America Ltd


Revenue 0.5 0.7 (0.2)

Operating profit (loss) (0.1) 0.3 (0.4)

Profit (loss) for the period (0.1) 0.2 (0.3)

Net financial position 0.2 0.4 (0.2) 0.6

Equity 1.6 1.3 0.3 1.7

Employees (no.) 15 12 3 10

10

Reclassified income statement

(€’000)

(*) Materials and services are net of utilisations of the provisions for product warranty and risks (€2.9 thousand and €12.6 thousand for the first quarters of 2018 and 2019, respectively) (**) Labour cost is net of utilisations of the restructuring provision (€42.4 thousand and €7.7 thousand for the first quarters of 2018 and 2019, respectively). As required by Consob resolution no. DEM/6064293 of 28 July 2006, a reconciliation of the data in the condensed interim consolidated financial statements with those in the reclassified schedules is provided below: - Materials and services include raw materials and components, other variable production costs, external variable

engineering services, exchange rate gains and losses and other expenses. - Amortisation and depreciation comprise amortisation of intangible assets and depreciation of property, plant and

equipment and investment property. - (Additions to)/utilisation of provisions and impairment losses include additions to/utilisation of provisions, impairment

losses and inventory write-downs. - Net financial expense comprises net financial expense and dividends.

Q1 2019 % Q1 2018 % Variation 2018

Revenue from sales and services 22,317 88.40 26,415 92.93 (4,098) 97,528

Change in finished goods 6 0.02 (9) (0.03) 15 (26)

Other revenue and income 2,924 11.58 2,018 7.10 906 7,825

Revenue 25,247 100.00 28,424 100.00 (3,177) 105,327

Net gains on the sale of non-current assets - - 83 0.29 (83) 184

Materials and services (*) (10,043) (39.78) (12,523) (44.06) 2,480 (42,900)

Change in raw materials 55 0.22 18 0.06 37 41

Value added 15,259 60.44 16,002 56.31 (743) 62,652

Labour cost (**) (13,410) (53.12) (11,923) (41.95) (1,487) (50,038)

Gross operating profit 1,849 7.32 4,079 14.36 (2,230) 12,614

Amortisation and depreciation (1,156) (4.58) (940) (3.31) (216) (3,433)

(Additions to)/utilisation of provisions and impairment losses 20 0.08 (9) (0.03) 29 (5,386)

Operating profit 713 2.82 3,130 11.01 (2,417) 3,795

Net financial expense (162) (0.64) (555) (1.95) 393 (2,397)

Share of profit (loss) of equity-accounted investees (33) (0.13) 3 0.01 (36) (21)

Profit before taxes 518 2.05 2,578 9.07 (2,060) 1,377

Income taxes (104) (0.41) (481) (1.69) 377 796

Profit for the period/year 414 1.64 2,097 7.38 (1,683) 2,173- - - - -

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Reconciliation between the parent’s loss and equity and consolidated profit and equity

The parent’s loss and equity as at and for the period ended 31 March 2019 are reconciled with the Group’s relevant figures below.

Q1 2019 Q1 2018 31.03.2019 31.03.2018

Pininfarina S.p.A.'s interim separate financial statements (60,534) 1,739,966 70,591,258 61,775,179

- Subsidiaries' contribution 474,182 354,060 (2,354,517) 5,058,459

- Goodwill of Pininfarina Extra S.r.l. - - 1,043,497 1,043,497

- Elimination of trademark licence in Germany - - (6,749,053) (6,749,053)

- Share of profit of equity-accounted investees - 2,796 - 2,796

Condensed interim consolidated financial statements 413,648 2,096,822 62,531,185 61,130,878

Profit (loss) for the period Equity

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Reclassified statement of financial position

(€’000)

(*) Other liabilities include the following items: deferred tax liabilities, other financial liabilities, current tax liabilities and other liabilities.

Net financial debt

(€’000)

31.03.2019 31.12.2018 Variation 31.03.2018

Net non-current assets (A)

Net intangible assets 7,743 7,326 417 7,366

Net property, plant and equipment and investment property 49,663 49,979 (316) 49,398

Right-of-use assets 7,189 0 7,189 0

Equity investments 824 857 (33) 882

Total A 65,419 58,162 7,257 57,646

Working capital (B)

Inventories 469 408 61 401

Contract assets 4,188 3,131 1,057 2,677

Net trade receivables and other assets 41,223 34,647 6,576 27,882

Assets held for sale - - - 135

Deferred tax assets 3,008 3,019 (11) 874

Trade payables (17,015) (16,595) (420) (20,284)

Contract liabilities (14,570) (13,566) (1,004) (9,661)

Provisions for risks and charges (562) (620) 58 (596)

Other liabilities (*) (7,715) (7,268) (447) (6,410)

Total B 9,026 3,156 5,870 (4,982)

Net invested capital (C=A+B) 74,445 61,318 13,127 52,664

Post-employment benefits (D) 5,065 4,778 287 4,653

Net capital requirements (E=C-D) 69,380 56,540 12,840 48,011

Equity (F) 62,531 61,749 782 61,131

Net financial (position) debt (G)

Non-current loans and borrowings 27,867 21,891 5,976 24,122

Net current financial position (21,018) (27,100) 6,082 (37,242)

Total G 6,849 (5,209) 12,058 (13,120)

Total as in E (H=F+G) 69,380 56,540 12,840 48,011

31.03.2019 31.12.2018 Variation 31.03.2018

Cash and cash equivalents 13,402 18,357 (4,955) 31,729

Current assets held for trading 13,691 13,106 585 9,067

Current bank overdrafts (936) (725) (211) -

Lease liabilities (1,501) - (1,501) -

Loans and borrowings - related parties and joint ventures - - - -

Current portion of bank loans and borrowings (3,638) (3,638) - (3,554)

Net current financial position 21,018 27,100 (6,082) 37,242

Non-current loans and receivables - third parties - - - -

Non-current loans and receivables - related parties 550 550 - 651

Non-current held-to-maturity investments - - - -

Non-current lease liabilities (5,603) - (5,603) -

Non-current bank loans and borrowings (22,814) (22,441) (373) (24,773)

Non-current loans and borrowings (27,867) (21,891) (5,976) (24,122)

NET FINANCIAL POSITION (DEBT) (6,849) 5,209 (12,058) 13,120

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Net financial debt (Consob)

(CESR recommendations no. 05-04b – EU Regulation no. 809/2004)

(€’000)

The “Net financial debt” set out above is presented in accordance with the format recommended by Consob in Communication DEM no. 6064293 of 28 July 2006, implementing CESR (now ESMA) recommendation no. 05-04b. Because the purpose of this table is to show “Net financial debt”, assets are shown with a minus sign and liabilities with a plus sign. On the contrary, in the “Net financial debt” table provided on the previous page, assets are shown with a plus sign and liabilities with a minus sign. The reason for the difference between the amount of the “Net financial debt” on the previous page and on this page is that the latter does not include non-current loan assets. The total amount of these differences at the relevant reporting dates is shown below:

- At 31 March 2019: €550 thousand - At 31 December 2018: €551 thousand - At 31 March 2018: €651 thousand

31.03.2019 31.12.2018 Variation 31.03.2018

A. Cash (13,402) (18,357) 4,955 (31,729)

B. Other cash equivalents - - - -

C. Securities held for trading (13,691) (13,106) (585) (9,067)

D. Total cash and cash equivalents (A.)+(B.)+(C.) (27,093) (31,463) 4,370 (40,796)

E. Current loan assets - - - -

F. Current bank loans and borrowings 936 725 211 -

Current portion of secured bank loans 60 60 - 60

Current portion of unsecured bank loans 3,578 3,578 - 3,494

G. Current portion of non-current debt 3,638 3,638 0 3,554

H. Other current loans and borrowings 1,501 - 1,501 -

I. Current financial debt (F.)+(G.)+(H.) 6,075 4,363 1,712 3,554

J. Net current financial position (21,018) (27,099) 6,081 (37,242)

Non-current portion of secured bank loans 75 90 (15) 135

Non-current portion of unsecured bank loans 22,739 22,351 388 24,638

K. Non-current bank loans and borrowings 22,814 22,441 373 24,773

L. Bonds issued - - - -

M. Other non-current loans and borrowings 5,603 - 5,603 -

N. Net non-current financial debt (K.)+(L.)+(M.) 28,417 22,441 5,976 24,773

O. Net financial (position) debt (J+N) 7,399 (4,658) 12,057 (12,469)

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Pininfarina Group

Condensed interim consolidated financial statements

as at and for the three months ended 31 March 2019

16

Statement of financial position

Note 31.03.2019 31.12.2018

Land and buildings 1 33,787,236 33,825,524

Land 7,655,314 7,655,314

Buildings 26,131,922 26,170,210

Leased property - -

Plant and machinery 1 5,377,758 5,442,977

Machinery 1,600,875 1,648,444

Plant 3,776,883 3,794,533

Leased machinery and equipment - -

Furniture, fixtures and other assets 1 3,171,040 3,305,878

Furniture and fixtures 1,039,755 1,077,762

Hardware and software 1,328,956 1,401,352

Other assets, including vehicles 802,329 826,764

Assets under construction 25,014 11,736

Property, plant and equipment 42,361,048 42,586,115

Investment property 2 7,301,464 7,392,752

Goodwill 3 1,043,495 1,043,495

Licences and trademarks 3 1,172,101 750,162

Other 3 5,527,135 5,532,738

Intangible assets 7,742,731 7,326,395

Right-of-use assets 4 7,189,483

Subsidiaries - -

Associates 5 571,757 604,571

Joint ventures - -

Other companies 6 252,017 252,017

Equity investments 823,774 856,588

Deferred tax assets 18 3,008,017 3,019,085

Held-to-maturity investments - -

Loans and receivables 7 550,000 550,000

Third parties - -

Related parties 550,000 550,000

Available-for-sale financial assets - -

Non-current financial assets 550,000 550,000

TOTAL NON-CURRENT ASSETS 68,976,517 61,730,935

Raw materials 296,984 242,042

Work in progress - -

Finished goods 172,375 166,246

Inventories 8 469,359 408,288

Contract assets 9 4,188,491 3,130,909

Assets held for trading 10 13,690,843 13,105,943

Loans and receivables - -

Third parties - -

Related parties - -


Current financial assets 13,690,843 13,105,943

Derivatives - -

Trade receivables 11 29,624,884 24,173,832

Third parties 22,717,277 21,344,384

Related parties 6,907,607 2,829,448

Other assets 12 11,597,756 10,473,358

Trade receivables and other assets 41,222,640 34,647,190

Cash in hand and cash equivalents 11,859 17,227

Short-term bank deposits 13,390,194 18,339,366

Cash and cash equivalents 13 13,402,053 18,356,593

TOTAL CURRENT ASSETS 72,973,386 69,648,923

TOTAL ASSETS 141,949,903 131,379,858

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Pursuant to Consob resolution no. 15519 of 27 July 2006, an ad hoc statement of financial position showing related party transactions has not been prepared as these are already shown in the condensed interim consolidated financial statements schedules. As for transactions with other related parties, such as directors and statutory auditors, “Trade payables - third parties” include accrued fees for the period/year of €47,408, mainly relating to Pininfarina S.p.A..

Note 31.03.2019 31.12.2018

Share capital 14 54,271,170 54,271,170

Share premium reserve 14 2,053,660 2,053,660

Reserve for treasury shares 14 175,697 175,697

Legal reserve 14 6,063,759 6,063,759

Stock option reserve 14 2,093,306 1,911,103

Translation reserve 14 118,107 (8,639)

Other reserves 14 6,879,728 2,646,208

Losses carried forward 14 (9,537,890) (7,537,263)

Profit for the period/year 14 413,648 2,173,181

EQUITY ATTRIBUTABLE TO THE OWNERS OF THE PARENT 62,531,185 61,748,876

Equity attributable to non-controlling interests - -

EQUITY 62,531,185 61,748,876

Finance lease liabilities - -

Lease liabilities 5,602,818 -

Other loans and borrowings 22,813,560 22,441,025

Third parties 22,813,560 22,441,025

Related parties - -

Non-current loans and borrowings 15 28,416,378 22,441,025

Deferred tax liabilities 18 (18,744) -

Italian post-employment benefits 16 5,065,012 4,778,297

Other - -

Post-employment benefits 5,065,012 4,778,297

TOTAL NON-CURRENT LIABILITIES 33,462,646 27,219,322

Bank overdrafts 936,051 725,304


Lease liabilities 1,501,168 -


Third parties 3,638,089 3,638,089

Related parties - -

Current loans and borrowings 15 6,075,308 4,363,393

Wages and salaries payable 3,953,904 3,172,734

Social security charges payable 805,678 1,358,763

Other 1,281,420 1,379,007

Other financial liabilities 16 6,041,002 5,910,504

Third parties 16,918,267 16,102,312


Contract liabilities 14,569,800 13,565,536

Trade payables 16 31,584,878 30,160,911

Direct tax liabilities 479,639 224,671

Other tax liabilities 891,184 756,012

Current tax liabilities 18 1,370,823 980,683

Derivatives - -

Provision for product warranty 53,236 53,236

Restructuring provision 176,768 184,454

Other provisions 331,575 382,742

Provisions for risks and charges 17 561,579 620,432

Third parties 322,482 375,737

Related parties - -

Other liabilities 16 322,482 375,737

TOTAL CURRENT LIABILITIES 45,956,072 42,411,660

TOTAL LIABILITIES 79,418,718 69,630,982

TOTAL LIABILITIES AND EQUITY 141,949,903 131,379,858

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Income statement

Note Q1 2019

of which:

related

parties Q1 2018

of which:

related

parties

Revenue from sales and services 19 22,316,605 7,731,150 26,415,349 1,306,784

Internal work capitalised - -

Change in finished goods 6,129 (9,766)

Other revenue and income 2,924,269 412,500 2,017,593 1,205,333 - - - -

Revenue 25,247,003 8,143,650 28,423,176 2,512,117 - -

Gains on sale of non-current assets and equity investments 50 - 82,845 - - -

Gain on sale of equity investments - -

Raw materials and components 20 (2,153,295) (2,590,027)

Change in raw materials 54,942 18,015

Inventory write-downs - - - - - -

Raw materials and consumables (2,098,353) - (2,572,012) - - - - -

Consumables (297,764) (423,156)

External maintenance (326,755) (311,760) - - - -

Other variable production costs (624,519) - (734,916) -

External variable engineering services 21 (3,583,827) (205,076) (6,260,249) (548,172)

Blue collars, white collars and managers (13,026,965) (11,614,419)

Independent contractors and temporary workers - -

Social security contributions and other post-employment benefits (383,247) (307,328) - - - -

Wages, salaries and employee benefits 22 (13,410,212) - (11,921,747) - - - - -

Depreciation of property, plant and equipment and investment property (746,513) (676,046)

Amortisation of intangible assets (91,237) (264,315)

Depreciation of right-of-use assets (317,834) -

Losses on sale of non-current assets and equity investments - -

(Additions to)/utilisation of provisions and impairment losses 23 19,663 (8,685) - - - -

Amortisation, depreciation and impairment losses (1,135,921) - (949,046) - - -

Net exchange losses (692) (22,341)

Other expenses 24 (3,680,848) - (2,915,364) - - -

Operating profit 712,681 7,938,574 3,130,346 1,963,945

Net financial expense 25 (162,156) - (554,953) 550- -

Dividends - -

Share of profit (loss) of equity-accounted investees (32,814) 2,796

Profit before taxes 517,711 7,938,574 2,578,189 1,964,495

Income taxes 18 (104,063) (481,367) - -

Profit for the period 413,648 7,938,574 2,096,822 1,964,495

Of which:

- Profit for the year attributable to the owners of the parent 413,648 2,096,822 -

- Profit for the period attributable to non-controlling interests - -

Basic/diluted earnings per share:

- Profit for the year attributable to the owners of the parent 413,648 2,096,822

- Number of ordinary shares, net 54,271,170 54,271,170

- Basic/diluted earnings per share 0.01 0.04

19

Statement of comprehensive income

Pursuant to Consob resolution no. 15519 of 27 July 2006, the effects of related party transactions on the income statement of the Pininfarina Group are shown in the table provided above and in the “Other information” section of the notes.

Q1 2019 Q1 2018

Profit for the period 413,648 2,096,822

Other comprehensive income:

Items that will not be reclassified to profit or loss:

- Actuarial gains (losses) on defined benefit plans - IAS 19 (37,499) 75,444

- Income taxes - (4,288)

- Other 97,211 -

Total items of other comprehensive expense that will not be 59,712 71,156 reclassified to profit or loss, net of tax effect:

Items that will or may be subsequently reclassified

to profit or loss:

- Gains (losses) from translation of financial statements of foreign operations - IAS 21 126,746 (21,845)

- Other - -

Total items of other comprehensive expense that will be subsequently 126,746 (21,845)

reclassified to profit or loss, net of tax effect:

Total other comprehensive income, net of tax effect 186,458 49,311

Comprehensive income 600,106 2,146,133

Of which:

- Comprehensive income attributable to the owners of the parent 600,106 2,146,133

- Comprehensive income attributable to non-controlling interests - -

Of which:

- Comprehensive income from continuing operations 600,106 2,146,133

- Comprehensive income from discontinued operations - -

20

Statement of changes in equity

31.12.2017

Comprehensive

income

Stock option

reserve

Allocation of

prior year

profit 31.03.2018

Share capital 54,271,170 - - - - 54,271,170

Share premium reserve 2,053,660 - - - - 2,053,660

Reserve for treasury shares 175,697 - - - - 175,697

Legal reserve 6,033,331 - - - - 6,033,331

Stock option reserve 1,172,170 - 182,203 - - 1,354,373

Translation reserve (50,950) (21,845) - - - (72,795)

Other reserves 2,646,208 - - - - 2,646,208

Losses carried forward (8,810,453) 71,156 - 1,311,709 - (7,427,588)

Profit for the period/year 1,311,709 2,096,822 - (1,311,709) - 2,096,822

58,802,542 2,146,133 182,203 - - 61,130,878

Equity attributable to non-controlling interests - - - - - -

EQUITY 58,802,542 2,146,133 182,203 - - 61,130,878

31.12.2018

Comprehensive

income

Stock option

reserve

Allocation of

prior year

profit

Merger of

Pininfarina

Extra S.r.l. 31.03.2019

Share capital 54,271,170 - - - - 54,271,170

Share premium reserve 2,053,660 - - - - 2,053,660

Reserve for treasury shares 175,697 - - - - 175,697

Legal reserve 6,063,759 - - - - 6,063,759

Stock option reserve 1,911,103 - 182,203 - - 2,093,306

Translation reserve (8,639) 126,746 - - - 118,107

Other reserves 2,646,208 - - - 4,233,520 6,879,728

Losses carried forward (7,537,263) 59,712 - 2,173,181 (4,233,520) (9,537,890)

Profit for the period/year 2,173,181 413,648 - (2,173,181) - 413,648

61,748,876 600,106 182,203 - - 62,531,185

Equity attributable to non-controlling interests - - - - - -

EQUITY 61,748,876 600,106 182,203 - - 62,531,185

EQUITY ATTRIBUTABLE TO THE OWNERS

OF THE PARENT

EQUITY ATTRIBUTABLE TO THE OWNERS

OF THE PARENT

21


Pursuant to Consob resolution no. 15519 of 27 July 2006, the impact of transactions with related parties, which are those with the ultimate parent, PF Holding B.V., the Mahindra group companies and the associates Goodmind S.r.l. and Signature S.r.l., are disclosed in notes 5, 7, 11 and 16 to the condensed interim consolidated financial statements.

Q1 2019 Q1 2018

Profit for the period 413,648 2,096,822

Adjustments:

- Income taxes 104,064 481,367

- Depreciation of property, plant and equipment and investment property 746,513 676,046

- Amortisation of intangible assets 91,237 264,315

- Depreciation of right-of-use assets 317,834 -

- Impairment losses, provisions and change in accounting estimates (45,687) (83,521)

- Gains on the sale of non-current assets (50) (82,845)

- Financial expense 513,632 555,729

- Financial income (351,476) (776)

- Dividends - -

- Share of (profit) loss of equity-accounted investees 32,814 (2,796)

- Other adjustments 720,137 139,491

Total adjustments 2,129,018 1,947,010

Change in working capital:

- Increase in inventories (61,071) (8,249)

- Increase in contract work in progress (1,057,582) (1,193,485)

- Increase in trade receivables and other assets (2,571,412) (1,295,246)

- Increase in trade receivables from related parties and joint ventures (4,078,159) (1,798,972)

- Increase in trade payables, other financial liabilities and other liabilities 486,068 4,094,281

- Increase in trade payables to related parties and joint ventures (396,252) 459,619

- Increase/(decrease) in advances for contract work in progress and deferred income1,604,264 (1,516,363)

- Other changes (317,874) (91,187)

Total changes in working capital (6,392,018) (1,349,602)

Gross cash flows from (used in) operating activities (3,849,352) 2,694,230

- Interest expense (51,698) (50,129)

- Income taxes - -

NET CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES (3,901,050) 2,644,101

- Purchases of non-current assets and equity investments (966,098) (1,204,739)

- Proceeds from the sale of non-current assets and equity investments - 200,500

- Proceeds from the sale of discontinued operations, net of cash sold - -

- Increase in loans and receivables - third parties - -

- Increase in loans and receivables - related parties and joint ventures - (550,000)

- Repayment of loans and receivables - third parties - -

- Repayment of loans and receivables - related parties and joint ventures - -

- Proceeds from the sale of assets held for trading (584,900) (9,066,948)

- Financial income - 226

- Dividends collected - -

- Other changes 91,014 (63,973)

CASH FLOWS USED IN INVESTING ACTIVITIES (1,459,984) (10,684,934)

- Proceeds from the issue of shares - -

- Increase in finance lease liabilities and other loans and borrowings - third parties 210,747 -

- Increase in other loans and borrowings - related parties and joint ventures - -

- Repayment of finance lease liabilities and other loans and borrowings - third parties (15,000) (15,000)

- Repayment of other loans and borrowings - related parties and joint ventures - -

- Dividends paid - -

- Other changes/Other non-cash items - -

CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES 195,747 (15,000)

TOTAL CASH FLOWS (5,165,287) (8,055,833)

Opening net cash and cash equivalents 17,631,289 39,784,614

Closing net cash and cash equivalents 12,466,002 31,728,781

Of which:

- Cash and cash equivalents 13,402,053 31,728,781

- Bank overdrafts (936,051) -

22

Notes to the condensed interim consolidated financial statements GENERAL INFORMATION Foreword The core business of the Pininfarina Group (the “Group”) is based on the establishment of comprehensive partnerships with carmakers. Operating as a global partner enables it to work with customers through the entire process of developing new products, including design, planning, development, industrialisation and manufacturing, or to provide support separately during any one of these phases with the utmost flexibility. Pininfarina S.p.A., the Group’s parent, is listed on the Italian Stock Exchange. Its registered office is in Via Bruno Buozzi 6, Turin. Market investors own 23.82% of its share capital, with the remaining 76.18% held by the following shareholders:

PF Holdings BV 76.15%;

treasury shares held by Pininfarina S.p.A. 0.03%.

At the reporting date, PF Holdings is controlled by Tech Mahindra, which holds 60% of its share capital. Mahindra & Mahindra holds the residual 40%. Tech Mahindra, an Indian company listed on the National Stock Exchange of Mumbai (India), is a public company, specialised in IT services and solutions. It is not controlled by any major shareholder. Mahindra & Mahindra holds an investment of 26.15% therein at the reporting date. Mahindra & Mahindra is a company incorporated under Indian law, with registered office in India, whose shares are listed on the Indian National Stock Exchange. It is specialised in the production of cars, commercial vehicles, buses and tractors. Despite being directly controlled by PF Holdings, which is part of the Mahindra Group, Pininfarina S.p.A. is neither managed nor coordinated by PF Holdings pursuant to article 2497 and following articles of the Italian Civil Code. PF Holdings is simply a vehicle incorporated under Dutch law without an operating structure. There is no authorisation or reporting procedure in place that Pininfarina S.p.A. should follow in the relationships with its parent and, therefore, it has full autonomy to define its strategic and operating objectives, since it has (i) a structured organisation able to perform all business and corporate activities; (ii) its own distinct strategic, and financial planning process and (iii) the ability to make proposals about how to conduct and develop its business.

A list of the group companies, with their complete name and address, is provided later on. The condensed interim consolidated financial statements are presented in Euros, the functional and presentation currency of the parent, where most of the activities and consolidated revenue are concentrated, and its main subsidiaries. All amounts are presented in Euros, unless stated otherwise. The Board of Directors approved these condensed interim consolidated financial statements on 13 May 2019. They were authorised for publication within the legal terms.

23

Basis of presentation In accordance with IAS 1 - Presentation of Financial Statements, the condensed interim consolidated financial statements are the same as those of the parent. They include the following schedules:

statement of financial position, in which current and non-current assets and liabilities are classified separately;

income statement and statement of comprehensive income, shown as two separate schedules in which costs are classified by nature;

statement of cash flows, presented in accordance with the indirect method, as allowed by IAS 7 - Statement of cash flows;

statement of changes in equity. These schedules present the corresponding prior year annual or interim figures for comparative purposes. In accordance with IAS 34 - Interim financial reporting, the notes to the condensed interim consolidated financial statements are presented in a condensed format and do not include all the disclosure required for annual financial statements, since they cover only those items that, because of their amount, composition or change, are deemed essential to understand the Group’s financial performance, financial position and cash flows. Consequently, these condensed interim consolidated financial statements should be read in conjunction with the 2018 annual consolidated financial statements. Moreover, as required by Consob resolution no. 15519 of 28 July 2006, the Group presents the following information in separate schedules:

net financial debt, with a breakdown of the main components and balances with related parties (page 12 of the directors’ report);

the effects of non-recurring events or transactions, i.e., those transactions or events that are not repeated frequently in the normal course of business (pages 48 and 49).

Related party transactions are not presented in separate schedules because they are listed as separate items in the statement of financial position (pages 16 and 17). Basis of preparation These condensed interim consolidated financial statements are prepared on a going concern basis, which the directors deemed appropriate. They comply with the International Financial Reporting Standards (“IFRS”) issued by the International Accounting Standards Board (“IASB”) and endorsed by the European Union. They are also consistent with the regulations enacted to implement article 9 of Legislative decree no. 38/2005. The term IFRS includes the International Financial Reporting Standards, the International Accounting Standards (“IAS”) and all interpretations of the International Financial Reporting Interpretations Committee (“IFRIC”), previously called the Standing Interpretations Committee (“SIC”), endorsed by the European Commission as of the date of the Board of Directors’ meeting convened to approve the condensed interim consolidated financial statements and listed in the applicable regulations published by the European Union as of the above-mentioned date. These condensed interim consolidated financial statements are prepared in accordance with the general principle of historical cost, except for those items that, pursuant to the IFRS, are measured at fair value, as explained in the “Accounting policies” section. The accounting policies adopted to prepare these condensed interim consolidated financial statements at 31 March 2019 are the same as those used in 2018, except as noted in the following section.

24

Standards, amendments and interpretations applicable from 1 January 2019 IFRS 16 - Leases

IFRS 16 introduces a single model for recognising leases in lessees’ financial statements, whereby

lessees shall recognise an asset representing their right of use to the leased asset and a liability for

their obligation to make lease payments. Exemptions are provided for short-term and low value

leases. The recognition model for lessors is substantially unchanged from that currently applied, i.e.,

they continue to classify leases as operating or finance.

IFRS 16 supersedes the current requirements for leases, including IAS 17 - Leases, IFRIC 4 -

Determining whether an arrangement contains a lease, SIC-15 - Operating leases - Incentives and

SIC-27 - Evaluating the substance of transactions involving the legal form of a lease.

The Group adopted IFRS 16 on 1 January 2019, using the modified retrospective approach.

Therefore, the cumulative effect of adopting IFRS 16 has been recognised as an adjustment to the

opening balance of losses carried forward at 1 January 2019, with no restatement of comparative

information.

The following table summarises the IFRS 16 FTA impact on the individual affected captions of the

statement of financial position as at 31 March 2019 and the Q1 2019 income statement.

31.03.2019 as

reported Adjustments

Balances without

adoption of IFRS 16


Investment property 7,301,464 7,301,464


Right-of-use assets 7,189,483 7,189,483 -


Deferred tax assets 3,008,017 3,008,017


TOTAL NON-CURRENT ASSETS 68,976,517 7,189,483 61,787,034

Inventories 469,359 469,359

Contract assets 4,188,491 4,188,491



Cash and cash equivalents 13,402,053 13,402,053


TOTAL ASSETS 141,949,903 7,189,483 134,760,420

25

31.03.2019 as


Balances without

adoption of IFRS 16

EQUITY 62,531,185 (85,497) 62,445,688

Non-current loans and borrowings 28,416,378 (5,602,818) 22,813,560

Deferred tax liabilities (18,744) (18,744)


TOTAL NON-CURRENT LIABILITIES 33,462,646 (5,602,818) 27,859,828 Verso parti correlate - -

Current loans and borrowings 6,075,308 (1,501,168) 4,574,140

Other financial liabilities 6,041,002 6,041,002

Trade payables 31,584,878 31,584,878

Current tax liabilities 1,370,823 1,370,823

Provisions for risks and charges 561,579 561,579

Other liabilities 322,482 322,482

TOTAL CURRENT LIABILITIES 45,956,072 (1,501,168) 44,454,904

TOTAL LIABILITIES 79,418,718 (7,103,986) 72,314,732

TOTAL LIABILITIES AND EQUITY 141,949,903 (7,189,483) 134,760,420

Q1 2019 as


Balances without

adoption of IFRS 16

Revenue 25,247,003 25,247,003

Gains on sale of non-current assets and equity investments 50 50

Raw materials and consumables (2,098,353) (2,098,353)

Other variable production costs (624,519) (624,519)

External variable engineering services (3,583,827) (3,583,827)

Wages, salaries and employee benefits (13,410,212) (13,410,212)

Depreciation of property, plant and equipment and investment property (2,743,459) (2,743,459)


Depreciation of right-of-use assets (317,834) 317,834 -


(Additions to)/utilisation of provisions and impairment losses (5,386,036) (5,386,036)

Amortisation, depreciation and impairment losses (1,135,921) 317,834 (818,087)

Net exchange losses (692) (692)

Other expenses (3,680,848) (380,519) (4,061,367)

Operating profit 712,681 (62,685) 649,996

Net financial expense (162,156) 74,399 (87,757)

Dividends - -

Share of loss of equity-accounted investees (32,814) (32,814)

Profit (loss) before taxes 517,711 11,714 529,425

Income taxes (104,063) (104,063)

Profit for the period 413,648 11,714 425,362

26

Other standards

The following amended standards and interpretations are not expected to have a significant impact

on the Group’s consolidated financial statements:

– IFRIC 23 - Uncertainty over tax treatments;

– Prepayment features with negative compensation (Amendments to IFRS 9);

– Long-term interests in associates and joint ventures (Amendments to IAS 28);

– Plan amendment, curtailment or settlement (Amendments to IAS 19). ACCOUNTING POLICIES Condensed interim consolidated financial statements The condensed interim consolidated financial statements include the interim financial statements of all subsidiaries from the date the Group acquires control until such control ceases to exist. Joint ventures (if any) and associates are measured using the equity method. Intragroup expenses, revenue, receivables, payables, gains and losses are eliminated in the consolidation process. When necessary, the accounting policies of subsidiaries, associates and joint ventures are amended to make them consistent with those of the parent. (a) Subsidiaries and business combinations A list of the companies consolidated line by line is provided below:

The reporting date of the subsidiaries is the same as that of the parent, Pininfarina S.p.A..

(b) Acquisition/sale of equity investments subsequent to the acquisition of control

Acquisitions and sales of equity investments subsequent to the acquisition of control that do not result in a loss of control are accounted for as owner transactions.

In the case of acquisitions, the difference between the consideration paid and the pro rata interest in the carrying amount of the net assets acquired is recognised in equity. In the case of sales, the resulting gain or loss is also recognised directly in equity.

If the Group loses control or significant influence, the remaining non-controlling interest is remeasured at fair value and any positive or negative difference between its carrying amount and fair value is recognised in profit or loss.

Name Registered office Investment % Held by

Currency

Share/quota

capital

Pininfarina of America Corp. 501 Brickell Key Drive,

Suite 200, Miami FL 33131 USA

100% Pininfarina S.p.A. USD 10,000

Pininfarina Engineering S.r.l. Via Nizza 262/25, Turin,

Italy

100% Pininfarina S.p.A. € 100,000

Pininfarina Deutschland Holding GmbH Riedwiesenstr. 1, Leonberg,

Germany

100% Pininfarina Engineering S.r.l. € 3,100,000

Pininfarina Deutschland GmbH Frankfurter Ring 81, Munich,

Germany

100% Pininfarina Deutschland Holding GmbH € 25,000

Pininfarina Shanghai Co. Ltd Unit 1, Building 3, Lane 56, Antuo

Road, Anting, 201805, Jiading

district, Shanghai, China

100% Pininfarina S.p.A. CNY 3,702,824

27

(c) Associates

Associates are listed below:

(d) Other companies

Investments in other companies that are available-for-sale financial assets are measured at fair value, if feasible, and any resulting gains or losses are recognised in equity until the investments are sold. At that point, fair value gains or losses accumulated in equity are reclassified to the income statement for the period.

If the equity investments are not listed on a regulated market and their fair value cannot be reliably determined, they are measured at cost, adjusted for any impairment losses, which cannot be reversed.

Translation of foreign currency captions

(a) Presentation currency and translation of financial statements denominated in currencies other than the Euro

The Group’s presentation currency is the Euro.

The table below lists the exchange rates used to translate financial statements denominated in functional currencies different from the presentation currency:

(b) Foreign currency assets, liabilities and transactions

Transactions carried out in currencies other than the Euro are initially translated at the exchange rate in force on the date of the transaction.

At the reporting date, monetary assets and liabilities denominated in foreign currencies are retranslated into Euros at the closing rate. All resulting exchange rate gains and losses are recognised in profit or loss, except for those stemming from foreign currency loans that hedge investments in foreign operations. Any such gains or losses, net of the related tax effects, are recognised directly in equity. When the equity investment is sold, the accumulated translation differences are reclassified to profit or loss.

Non-monetary items that are carried at historical cost are translated into Euros at the exchange rate in force when the underlying transaction was initially recognised. Non-monetary items that are carried at fair value are translated into Euros at the exchange rate in force on the measurement date.

None of the group companies operate in a hyperinflationary economy.

Name Registered office Investment % Held by Currency

Quota

capital

Goodmind S.r.l. Via Nazionale 30,

Cambiano, Italy 20% Pininfarina S.p.A. € 20,000

Signature S.r.l. Via Paolo Frisi 6, Ravenna,

Italy 24% Pininfarina S.p.A. € 10,000

Euro vs currency 31.03.2019 Q1 2019 31.03.2018 Q1 2018

US dollar - USD 1.12 1.14 1.23 1.23

Chinese renminbi (yuan) - CNY 7.54 7.66 7.75 7.82

28

TYPES OF FINANCIAL INSTRUMENTS AND FAIR VALUE HIERARCHY The financial instruments held by the Group include:

cash and cash equivalents;

financial assets held for trading;

non-current loan liabilities;

trade receivables and payables and loans and receivables - related parties. As required by IFRS 7, the table below lists the types of financial instruments included in the condensed interim consolidated financial statements and shows the measurement criteria adopted:

In addition, net cash and cash equivalents are measured at fair value which usually equals their nominal amount.

Pursuant to IFRS 7 – Financial Instruments: Disclosures, the classification of financial instruments at fair value is based on the quality of the inputs used for measurement purposes. The IFRS 7 classification is based on the following fair value hierarchy:

Level 1: fair value is determined based on prices quoted on an active market for identical assets or liabilities.

Level 2: fair value is determined based on inputs that, while different from the quoted prices used in Level 1, can be observed either directly or indirectly. These condensed interim consolidated financial statements do not present any financial instruments of this type.

Level 3: fair value is determined based on valuation models, the inputs of which are not based on observable market data. These condensed interim consolidated financial statements do not present any financial instruments of this type.

Fair

value

hierarchy

Financial

instruments

at amortised

cost

Equity

investments

at cost

Carrying

amount at

31.03.2019

Carrying

amount at

31.12.2018

profit or

loss

equity

Assets:

Equity investments in other companies - - - 252,017 252,017 252,017

Loans and receivables - - 550,000 - 550,000 550,000

Assets held for trading 13,690,843 - Level 1 - - 13,690,843 13,105,943

Trade receivables and other assets - - 41,222,640 - 41,222,640 34,647,190

Liabilities:

Finance lease liabilities - - - - - -

Other loans and borrowings - - 34,491,686 - 34,491,686 26,804,418

Trade payables and other liabilities - - 32,866,298 - 32,866,298 31,539,919

Financial instruments

at fair value through:

29

FINANCIAL RISK MANAGEMENT Financial risk factors, as identified in IFRS 7 – Financial Instruments: Disclosures, are described below:

Market risk: the risk that the fair value or the future cash flows of a financial instrument could fluctuate as a result of changes in market prices. Market risk includes the following other types of risk: currency risk, interest rate risk and price risk.

Currency risk: the risk that the fair value or the future cash flows of a financial instrument could fluctuate as a result of changes in exchange rates.

Interest rate risk: the risk that the fair value or the future cash flows of a financial instrument could fluctuate as a result of changes in interest rates.

Price risk: the risk that the fair value or the future cash flows of a financial instrument could fluctuate as a result of changes in market prices (other than changes covered by the interest rate and currency risks), irrespective as to whether such fluctuations are determined by factors specific to the financial instrument or its issuer or by factors that affect all similar market-traded financial instruments.

Credit risk: the risk that one of the parties causes the other party to incur a financial loss by failing to fulfil an obligation.

Liquidity risk: the risk that an entity may be unable to fulfil obligations associated with financial liabilities.

(a) Currency risk The Group entered into most of its financial instruments in Euros, which is its functional and presentation currency. Although it operates in an international environment, its exposure to fluctuations in exchange rates is limited to the following currencies against the Euro: US dollar (USD), and Chinese Yuan (CNY). (b) Interest rate risk The Restructuring Agreement signed by Pininfarina S.p.A. with the lending institutions, effective from 30 May 2016 to 31 December 2025, defined a fixed contractual interest rate of 0.25% per annum, based on a year of 360 days. If the six-month Euribor exceeds 4% during an interest accruing period, the contractual interest rate will be increased by the difference between the actual six-month Euribor and 4%. The Group is exposed to interest rate risk solely in connection with the loan provided by Volksbank Region Leonberg to Pininfarina Deutschland GmbH, which accrues interest at the three-month Euribor plus a spread of 0.55%. Interest on the short-term operating lines is computed at a fixed rate ranging between 4.74% and 6.40%, with regular accrual and payment in arrears at the end of each utilisation period. A breakdown of the Group’s financial debt by fixed and variable interest rates is as follows:

Due to the new structure of the interest rates on the medium to long-term financing that, at variable rates, accounts for 3.9% of total indebtedness with third parties, the Group has not performed a sensitivity analysis. (c) Price risk Because the Group primarily operates within the Eurozone, its exposure to the risk of fluctuations in commodity prices is currently immaterial.

31.03.2019 % 31.12.2018 %

- Fixed rate 26,316,649 96.1% 25,929,114 96.7%

- Variable rate 1,071,051 3.9% 875,304 3.3%

Gross financial debt with third parties 27,387,700 100.0% 26,804,418 100.0%

30

(d) Credit risk The Group is exposed to credit risk, defined as the probability of an impairment loss on exposures with a commercial or financial counterparty. With reference to commercial transactions, the Group’s most significant projects have a limited number of counterparties, most of which may be qualified as of a primary credit standing. At group level, credit risk is especially concentrated in Asia (Iran, India and China). Counterparty risk in the case of countries in which the Group does not usually undertake commercial transactions is analysed and assessed at the offering phase in order to identify and mitigate any solvency risk. The Group operates in markets that are or have been recently affected by geopolitical or financial tensions. Specifically, the following exposures are considered to bear solvency risk:

Lastly, as disclosed in the specific section, the receivables related to certain contracts may remain unpaid, be renegotiated or cancelled. Specifically, during the year, the Group recognised impairment losses on the receivables relating to a project for a Chinese customer (carrying amount of €5,181 thousand). (e) Liquidity risk In brief, the Rescheduling Agreement effective as of 30 May 2016 entailed: - settlement and extinguishment of 56.74% of the nominal amount of the parent’s debt with the

lending institutions that accepted this option, in addition to the interest accrued up to the effective date;

- the rescheduling of the nominal amount of the debt with the lending institutions that accepted this option, totalling €41.5 million, from 2016 to 2025;

- the application of a fixed interest rate of 0.25% per annum, based on a year of 360 days, increased by the difference between this rate and the six-month Euribor, should the latter exceed 4%.

The cash flows of the above-mentioned agreement have been determined on the basis of the 2016-2025 business and financial plan that ensures the parent’s and the Group’s financial stability. Consequently, over the medium to long term, the liquidity risk is directly correlated to the achievement of the business plan targets. A breakdown of the contractual amount of the Group’s financial debt is set out below.

The Group holds net cash and cash equivalents and assets held for trading in its portfolio totalling €27.1 million. Consequently, it is not exposed to liquidity risk in the foreseeable future.

Iran

(€'000)

Assets 3,040

Contract liabilities 1,468

Net exposure 1,572

Carrying

amount

31.03.2019

Contractual

cash flows

Of which:

due within one

year

Of which:

due from one to

five years

Of which:

due after five

years

Term financing 27,387,700 35,386,325 4,574,140 17,973,023 12,839,162

31

(f) Risk of default and debt covenants This risk relates to the possibility that the new Rescheduling Agreement between Pininfarina S.p.A. and the lending institutions that came into force on 30 May 2016 may include acceleration clauses that would give rise to liquidity risk.

The Rescheduling Agreement requires that, as of the verification date of 31 March of each year, the financial covenant shall be at least equal to the minimum consolidated equity, i.e., €30 million. The covenant will be checked until the expiry of the loan in 2025.

The Mahindra Group granted a first demand surety to the lending institutions that is enforceable if Pininfarina S.p.A. fails to meet its obligations.

SEGMENT REPORTING

Operating segments are identified in accordance with paragraphs 5 to 10 of IFRS 8 – Operating

segments.

Financial income and expense and income taxes are not allocated to the reporting segments

because management makes the relevant decisions on an aggregate segment basis. Intra-segment

transactions are carried out at market conditions. In accordance with IFRS 8.4, the Group presents

segment reporting in its consolidated financial statements only.

The Group’s business segments are not affected by seasonal factors.

Segment reporting as at and for the three months ended 31 March 2019 and 2018 is set out below.

Amounts are in thousands of Euros.

Reference should be made to the directors’ report for an analysis of the operating segments.

Design Engineering Total Design Engineering Total

A B A + B A B A + B

Revenue 16,132 12,402 28,534 15,427 13,184 28,611

(Intra-segment revenue) (997) (2,290) (3,287) (187) - (187)

Revenue - third parties 15,135 10,112 25,247 15,240 13,184 28,424

Operating profit 395 318 713 2,146 984 3,130

Net financial expense (162) (555)

Dividends - -

Share of profit (loss) of equity-accounted investees (33) - (33) - 3 3

Profit before taxes - - 518 - - 2,578

Income taxes - - (104) - - (481)

Profit from continuing operations - - 414 - - 2,097

Other information required by IFRS 8:

- Amortisation and depreciation (720) (436) (1,156) (407) (533) (940)

- Impairment losses (8) (11) (19) - (3) (3)

- Provisions/change in accounting estimates - 39 39 - (6) (6)

- Net gains on the sale of non-current assets - - - - 83 83

Q1 2019 Q1 2018

32

Sales are broken down by geographical segment below:

NOTES TO THE CAPTIONS 1. Property, plant and equipment The carrying amount of property, plant and equipment at 31 March 2019 decreased slightly to €49.7 million from €50 million at 31 December 2018. Changes in property, plant and equipment and an analysis of the items making up the captions are set out below.

Land and buildings include the carrying amounts of real estate complexes, comprising the production facilities located in Via Castellamonte 6, Bairo Canavese (TO) and Strada provinciale per Caluso, San Giorgio Canavese (TO), the styling and engineering sites in Via Nazionale 30, Cambiano (TO) and a property in Beinasco (TO). All land and buildings located in Italy are owned by Pininfarina S.p.A..

Q1 2019 Q1 2018

Italy 716 5,256

EU 12,174 5,060

Non-EU countries 8,388 14,903

Revenue from sales and services 21,278 25,219

Land Buildings Total

Historical cost 12,291,743 64,295,066 76,586,809

Accumulated depreciation and impairment losses (4,636,429) (38,124,856) (42,761,285)

Carrying amount at 31 December 2018 7,655,314 26,170,210 33,825,524

Reclassification: Historical cost - - -

Reclassification: Acc. depreciation and imp. losses - - -

Additions - 244,177 244,177

Historical cost - Merger - - -

Acc. depreciation - Merger - - -

Disposals: Historical cost - - -

Disposals: Acc. depreciation and imp. losses - - -

Depreciation - (282,470) (282,470)

Impairment losses - - -

Reclassifications - 938 938

Other changes - (933) (933)

Carrying amount at 31 March 2019 7,655,314 26,131,922 33,787,236

Of which:

Historical cost 12,291,743 64,539,243 76,830,986


33

Plant and machinery at 31 March 2019 include generic production plant and machinery, mainly based at the Bairo and Cambiano facilities. Additions of the period are mainly due to machinery and plant installed at the Cambiano facility.

Additions to hardware and software for the reporting period relate to the purchase of IT equipment for technological upgrading, mainly attributable to the parent.

Machinery Plant Total

Historical cost 6,860,513 84,927,841 91,788,354



Reclassification: Historical cost - 11 11

Reclassification: Acc. depreciation and imp. losses (1) 786 785

Additions - 132,713 132,713

Historical cost - Merger - - -

Acc. depreciation - Merger - - -



Depreciation (47,568) (151,160) (198,728)


Reclassifications - - -

Other changes - - -


Of which:

Historical cost 6,860,513 85,060,565 91,921,078


Furniture and

fixtures

Hardware

and software Other assets Total

Historical cost 3,970,171 6,571,677 1,220,077 11,761,925

Accumulated depreciation and impairment losses (2,892,409) (5,170,325) (393,313) (8,456,047)

Carrying amount at 31 December 2018 1,077,762 1,401,352 826,764 3,305,878

Reclassification: Historical cost - - - -

Reclassification: Acc. depreciation and imp. losses - - - -

Additions 4,110 77,526 - 81,636

Historical cost - Merger - - - -

Acc. depreciation - Merger - - - -

Disposals: Historical cost - - - -

Disposals: Acc. depreciation and imp. losses - - - -

Depreciation (43,019) (101,444) (29,564) (174,027)


Reclassifications 2,291 (39,688) 8,397 (29,000)

Other changes (1,389) (8,790) (3,268) (13,447)

Carrying amount at 31 March 2019 1,039,755 1,328,956 802,329 3,171,040

Of which:

Historical cost 3,976,572 6,609,515 1,228,474 11,814,561

Accumulated depreciation and impairment losses (2,936,817) (5,280,559) (426,145) (8,643,521)

34

2. Investment property The Group’s investment property consists of buildings owned by Pininfarina Deutschland Holding GmbH in Renningen, near Stuttgart, Germany, which are leased to third parties. They are mortgaged to secure a loan received by the German subsidiary (€135,000). The market value of property, calculated in the appraisal available to the parent, exceeds its carrying amount.

3. Intangible assets The carrying amount of intangible assets at 31 March 2019 increased to €7.7 million from €7.3 million at 31 December 2018.

Land Buildings Total

Historical cost 5,807,378 12,232,539 18,039,917

Accumulated depreciation and impairment losses - (10,647,165) (10,647,165)


Reclassification: Historical cost - - -

Reclassification: Acc. depreciation and imp. losses - - -

Additions - - -



Depreciation - (91,288) (91,288)


Reclassifications - - -

Other changes - - -


Of which:

Historical cost 5,807,378 12,232,539 18,039,917

Accumulated depreciation and impairment losses - (10,738,453) (10,738,453)

Goodwill Licences Other Total

Historical cost 1,043,495 6,605,891 8,023,104 15,672,490

Accumulated amortisation and impairment losses - (5,855,729) (2,490,366) (8,346,095)

Carrying amount at 31 December 2018 1,043,495 750,162 5,532,738 7,326,395

Reclassification: Historical cost - - 1 1

Reclassification: Acc. amortisation and imp. losses - - - -

Additions - 507,572 - 507,572

Historical cost - Merger - - - -

Acc. depreciation - Merger - - - -

Disposals: Historical cost - - - -

Disposals: Acc. depreciation and imp. losses - - - -

Amortisation - (85,633) (5,604) (91,237)

Impairment losses - - - -

Reclassifications - - - -

Other changes - - - -

Carrying amount at 31 March 2019 1,043,495 1,172,101 5,527,135 7,742,731

Of which:

Historical cost 1,043,495 7,113,463 8,023,105 16,180,063

Accumulated amortisation and impairment losses - (5,941,362) (2,495,970) (8,437,332)

35

The Group’s only intangible asset with an indefinite useful life is goodwill (€1,043,495). 4. Right-of-use assets

This caption is required by IFRS 16 and shows the right to use the leased assets covered by the

leases signed by the group companies, mainly buildings housing their offices. 5. Investments in associates They include:

The decrease is due to the group’s share of their profit (loss) for the period. 6. Equity investments in other companies Equity investments in other companies did not change from the previous year end and are as follows:

7. Loans and receivables This caption relates to the non-interest bearing loan disbursed by the parent to the associate Signature S.r.l. to support its start-up phase. 8. Inventories

Raw materials mainly consist of various materials used for the production of cars and prototypes at

the Cambiano facility. Finished goods comprise car spare parts manufactured by the Group, which

are sold to carmakers, and Pininfarina-branded products.

31.03.2019 31.12.2018

Goodmind S.r.l. 108,348 107,839

Signature S.r.l. 463,409 496,732 300

Investments in associates 571,757 604,571

31.03.2019

Midi Plc 251,072

Idroenergia Soc. Cons. a.r.l. 516

Volksbank Region Leonberg 300

Unionfidi S.c.r.l.p.A. Turin 129

Equity investments in other companies 252,017

36

The table below shows a breakdown of inventories and the allowance for inventory write-down:

The allowance for raw material write-down is unchanged from the previous year end and reflects the

risk of obsolete and slow-moving items. 9. Contract assets Contract assets shows the balance of gross contract work in progress less progress payments and advances. The change for the period is due to the progress of certain styling and engineering contracts from customers inside and outside the European Union. 10. Assets held for trading Assets held for trading, which totalled €13.7 million at 31 March 2019, are measured at fair value. As they mainly consist of government bonds (investment grade) and are traded in regulated markets and have low risk profiles, the price risk presented by these assets is deemed to be limited. A breakdown of these assets by nature is provided below:

The fair value gain for the period has been recognised in profit or loss as financial income (see note 25).

31.03.2019 31.12.2018


Allowance for inventory write-down (338,368) (338,368)


Allowance for inventory write-down - -


31.03.2019 % 31.12.2018 %

Italian government or government-guaranteed bonds 599,529 4.38 994,930 7.59

Bank and insurance bonds 8,074,192 58.97 7,329,007 55.92

Other bonds 5,017,122 36.65 4,782,006 36.49

Assets held for trading 13,690,843 100.00 13,105,943 100.00

37

11. Trade receivables - third and related parties The following table shows trade receivables at 31 March 2019 and 31 December 2018:

The Group’s main counterparties are top carmakers with a high credit rating. Since there are no

insurance contracts on receivables, the Group’s maximum exposure to credit risk is equal to the

carrying amount of the receivables less the loss allowance. The Group did not factor any

receivables. Trade receivables are mostly denominated in Euros.

The increase in trade receivables from third parties is in line with the increase in revenue compared

to the corresponding period of the previous year, while the rise in trade receivables from related

parties is substantially related to the receivables from Automobili Pininfarina GmbH, a subsidiary of

the Mahindra & Mahindra Group.

Changes in the loss allowance are set out below:

As mentioned in the “Financial risk management” section, in the previous year, the Group

recognised impairment losses on certain net contract assets (see the following table) of specific

contracts that have been suspended, pending developments in the related customers’ industrial and

commercial strategies, in order to cover the risk of non-payment, renegotiation or cancellation.

31.03.2019 31.12.2018

Italy 1,347,175 2,286,911

EU 6,820,316 4,749,650

Non-EU countries 20,220,008 19,965,378

(Loss allowance) (5,670,223) (5,657,555)

Third parties 22,717,277 21,344,385

Signature S.r.l. 40,144 42,312

Mahindra&Mahindra Group 1,084,048 2,404,982

Tech Mahindra Group 17,849 46,309

Automobili Pininfarina GmbH 5,765,566 335,845


Trade receivables 29,624,884 24,173,832

Q1 2019 Q1 2018

Opening balance 5,657,555 456,809

Additions 12,668 5,286,661

Utilisations - (85,915)

Other changes - -

Closing balance 5,670,223 5,657,555

(€'000)

Trade receivables 11,617

Contract liabilities 6,436

Net exposure 5,181

38

12. Other assets The following table shows other assets at 31 March 2019 and 31 December 2018:

The VAT asset is mainly attributable to the parent. 13. Cash and cash equivalents The table below shows a breakdown of this caption and a comparison with the previous year-end corresponding figures:

The decrease is mainly due to working capital trends. The bank overdrafts relate to the credit facilities drawn down by Pininfarina Deutschland GmbH.

Reference should be made to the statement of cash flows for details of the cash flows for the period. 14. Equity (a) Share capital

The parent’s share capital is comprised of 54,287,128 ordinary shares, with a unit nominal amount of €1. There are no other classes of shares.

31.03.2019 31.12.2018

VAT 6,127,717 5,237,456

Withholding taxes 4,509,578 4,011,704

Prepayments and accrued income 392,883 775,686

Advances to suppliers 195,427 83,977

Amounts due from INAIL (the Italian Workers' Compensation Authority)

and INPS (the Italian social security institution) 59,335 53,564

Amounts due from employees 99 3,500

Other 312,717 307,471

Other assets 11,597,756 10,473,358

31.03.2019 31.12.2018




(Bank overdrafts) (936,051) (725,304)

Net cash and cash equivalents 12,466,002 17,631,289

Nominal

amount No.

Nominal

amount No.

Ordinary shares 54,287,128 54,287,128 54,287,128 54,287,128

(Treasury shares) (15,958) (15,958) (15,958) (15,958)

Share capital 54,271,170 54,271,170 54,271,170 54,271,170

31.03.2019 31.12.2018

39

Treasury shares are held in accordance with the limits imposed by article 2357 of the Italian Civil Code. Detailed information about the parent’s shareholders is provided in the “General information” section of these notes. (b) Share premium reserve This reserve is unchanged from the previous year end. (c) Reserve for treasury shares This reserve of €175,697, unchanged from the previous year end, is recognised in accordance with the provisions of article 2357 of the Italian Civil Code. (d) Legal reserve The legal reserve of €6,063,759 is unchanged from the previous year end. Pursuant to the provisions of article 2430 of the Italian Civil Code, it is available to cover any losses. (e) Stock option reserve Pursuant to article 114-bis of the Consolidated Finance Act, on 21 November 2016, the shareholders approved a stock option plan that provides for the free assignment of options for the subscription of ordinary shares to the parent’s employees. The ratio is one share for each option. The plan aims at incentivising attainment of the parent’s objectives and retaining employees. The plan provides that the maximum number of shares to be assigned to the beneficiaries is 2,225,925 and that the option’s exercise price is €1.10 for each share. The plan term is seven years (2016-2023). The reserve increased by the plan cost pertaining to the period. The options are measured using the Black-Scholes valuation approach, whose assumptions are as follows:

1. Volatility: 80% (three year average)

2. Risk-free rate: -0.41% (the average of the three instalments considered)

3. Dividends: no dividends are expected during the plan term

4. Average share price: €1.10

5. Vesting conditions: permanence of the employment agreement

6. Settlement method: equity instruments

7. Cost for the period: €182,203

8. Carrying amount at the reporting date: €2,093,306

(f) Translation reserve The translation reserve reflects the cumulative differences from the translation of financial statements of companies with functional currencies other than the Euro, which is the Group’s presentation currency. These companies are Pininfarina Shanghai Co Ltd. and Pininfarina of America Corp.. (g) Other reserves Other reserves of €6,879,728 rose by €4,233,520 due to the merger of Pininfarina Extra S.r.l. into Pininfarina S.p.A..

40

(h) Losses carried forward Losses carried forward totalled €9,537,890 at the reporting date, down by €2,000,627 from the 31 December 2018 figure. The decrease is due to:

- the allocation of the profit for 2018 of €2,173,181; - the reclassification of €4,233,520 to other reserves, following the merger of Pininfarina

Extra into Pininfarina S.p.A.; - the negative effect for the year of the adoption of IAS 19 (revised), quantified at €37,499; - the effect of the FTA of IFRS 16 quantified at €97,211.

The table reconciling the parent’s profit and equity as at and for the period ended 31 March 2019 with the Group’s relevant figures is provided in the directors’ report, to which reference is made. 15. Loans and borrowings

(a) Rescheduling Agreement

The new Rescheduling Agreement (the “Agreement”) between Pininfarina S.p.A. and its lending

institutions became effective on 30 May 2016. Its effects are summarised below:

- settlement and extinguishment of 56.74% of the nominal amount of the parent’s debt with the

lending institutions that accepted this option, in addition to the interest accrued up to the effective date;

- the rescheduling of the nominal amount of the debt with the lending institutions that accepted

this option, totalling €41.5 million, to 2025;

- the application of a fixed interest rate of 0.25% per annum, based on a year of 360 days, increased by the difference between this rate and the six-month Euribor, should the latter exceed 4%.

(b) Fair value of restructured debt

The fair value of the restructured debt was determined by discounting the cash flows as per the

Rescheduling Agreement to their present value using a 6.5% rate, determined with the assistance of

a third-party financial advisor, as the sum of 1) the return on risk-free investments and 2) a credit

spread attributed to Pininfarina S.p.A.. The table below summarises the changes in loans and borrowings:

The increase in bank overdrafts is due to the credit facilities drawn down by Pininfarina Deutschland GmbH.

31.12.2018

Change in

bank

overdrafts

Unrealised

interest Repayment

Current/

non-current

reclassification 31.03.2019

Finance lease liabilities - - - - -

Other loans and borrowings 22,441,025 387,535 - (15,000) 22,813,560

Non-current portion 22,441,025 387,535 - (15,000) 22,813,560

Bank overdrafts 725,304 210,747 - - - 936,051

Finance lease liabilities - - - - -

Other loans and borrowings 3,638,089 - (15,000) 15,000 3,638,089

Current portion 4,363,393 210,747 - (15,000) 15,000 4,574,140

Current and non-current portions 26,804,418 210,747 387,535 (15,000) - 27,387,700

41

Other loans and borrowings include the amounts due to the parent’s lending institutions, parties to the Agreement, pursuant to the relevant loan and financing agreements.

A breakdown of the contractual cash flows by maturity is provided in paragraph (e) of the “Financial

risk management” section.

A breakdown of changes by lender is set out below:

(c) Lease liabilities

This caption is required by IFRS 16 and shows the Group’s obligation to make lease payments,

mainly relating to leases of buildings housing offices.

Other information

Pininfarina Deutschland Holding GmbH has a €135,000 loan with Volksbank Region Leonberg (GER). It is the only subsidiary with non-current debt.

Consequently, the Group’s loans and borrowings are not subject to currency risk.

16. Trade payables, other financial liabilities and other liabilities (a) Trade payables

Trade payables to third parties include roughly €5.8 million arising from an advisory services agreement that the parent signed in connection with a long-term contract.

The amount due under the agreement is recognised at the discounted value of the payment plan in place with the service provider.

The reporting-date balance comprises amounts that will be paid within twelve months of the reporting date, except for the trade payable described above, which will be settled over the term of the contract to which it relates.

31.12.2018

Unrealised

interest Repayment 31.03.2019

Intesa Sanpaolo S.p.A. 16,784,939 250,866 - 17,035,805

Banca Nazionale del Lavoro S.p.A. 988,016 14,767 - 1,002,783

Ubi Banca S.p.A. (formerly Banca Regionale Europea S.p.A.) 3,945,462 58,969 - 4,004,431

Selmabipiemme Leasing S.p.A. 4,210,697 62,933 - 4,273,630

Volksbank Region Leonberg (GER) 150,000 - (15,000) 135,000

Other loans and borrowings 26,079,114 387,535 (15,000) 26,451,649

31.03.2019 31.12.2018

Third parties 16,918,267 16,102,312



Trade payables and contract liabilities 31,584,878 30,160,911

42

(b) Other financial liabilities

17. Provisions for risks and charges, contingent liabilities and litigation (a) Provisions for risks and charges Changes in provisions for risks and charges are set out below, with a comment on the main changes:

The restructuring provision reflects the best estimate of the liability for restructuring at the reporting

date.

Other provisions reflect the estimated liabilities that may arise from losses to complete styling and

engineering contracts, potential disputes with former employees and environmental risks. The

column titled “Additions” shows the effects of unrealised losses to complete long-term contracts,

which are also shown in “Utilisations”. (b) Contingent liabilities and litigation

There are no contingent liabilities or litigation to report at the reporting date.

18. Current and deferred taxes (a) Deferred taxes The table below provides a breakdown of deferred tax assets and liabilities:

The net deferred tax assets shown in the condensed interim consolidated financial statements mainly refer to the parent, Pininfarina Engineering S.r.l. and the German companies.

31.03.2019 31.12.2018


Social security charges payable 805,678 1,358,763

Other 1,281,420 1,379,007


31.12.2018 Additions Utilisations Other changes 31.03.2019

Provision for product warranty 53,236 - - - 53,236

Restructuring provision 184,454 - (7,686) - 176,768

Other provisions 382,742 - (51,167) - 331,575

Provisions for risks and charges 620,432 - (58,853) - 561,579

31.03.2019 31.12.2018


(Deferred tax liabilities) - -

Net deferred tax assets 3,026,761 3,019,085

43

(b) Current taxes Income taxes recognised in profit or loss are detailed below:

19. Revenue from sales and services

Reference should be made to the relevant table for information on the impact of initially applying

IFRS 15 to the Group’s revenue from contracts with customers.

a) Revenue streams

The Group’s revenue mainly relates to the provision of design and engineering services and sales of

spare parts and prototypes.

Q1 2019 Q1 2018

Income taxes (35,225) (336,029)

IRAP (Regional tax on production activities) (76,310) (146,083)

Current taxes (111,535) (482,112)

Change in deferred tax assets 7,471 745

Change in deferred tax liabilities - -

Net deferred taxes 7,471 745

Income taxes (104,063) (481,367)

Q1 2019 Q1 2018

Sales - Italy 177,218 74,632

Sales - EU 192,284 226,192

Sales - Non-EU countries 457,617 986,187

Services - Italy 539,271 5,181,400

Services - EU 11,981,827 4,833,623

Services - Non-EU countries 7,930,276 13,916,938

Change in inventories and contract work in progress 1,038,112 1,196,377

Revenue from sales and services 22,316,605 26,415,349

44

Other sources of revenue include the following:

“Sundry” relates to Pininfarina Engineering S.r.l.’s acquisition of a business unit.

Royalties mainly refer to fees for the brand licence agreement signed with Mahindra & Mahindra Ltd. and the licence to use the Pininfarina trademark granted to the Bolloré S.A. Group in connection with the electric cars manufactured at the Bairo Canavese facility. Lease income mainly refers to the business lease signed by Pininfarina S.p.A. and a third party and leases for the two buildings located in Renningen, near Stuttgart, in Germany, owned by the subsidiary Pininfarina Deutschland Holding GmbH. Prior period income refers to prior period income and estimation differences, other than errors, resulting from the normal updating of estimates made in previous years. 20. Raw materials and components Raw materials and components mainly include purchases of equipment and materials used for the styling and engineering contracts and spare parts resold by the parent. 21. External variable engineering services External variable engineering services mainly refer to design and technical services. 22. Wages, salaries and employee benefits

Post-employment benefits – defined contribution plan reflect the costs related to post-employment

benefits both for defined benefit and defined contribution plans.

Q1 2019 Q1 2018

Lease income 495,536 443,888

Royalties 917,214 1,434,000

Grants for research and training 34,932 -

Prior period income 89,985 42,080

Insurance compensation 10,000 43,501

Rebilling 30,725 27,765

Sundry 1,345,877 26,359

Other revenue and income 2,924,269 2,017,593

Q1 2019 Q1 2018

Wages and salaries (10,480,198) (9,334,543)

Social security contributions (2,554,453) (2,282,201)

Utilisation of restructuring provision 7,686 2,325


Post-employment benefits - defined contribution plan (383,247) (307,328)


45

A breakdown of the actual number of employees at 31 March 2019 and the average number for the reporting period is set out below, as per article 2427 of the Italian Civil Code, calculated by adding the number of employees at the beginning and end of the reporting period and dividing the result by two:

The business lease currently in force involved the transfer of 46 employment contracts.

23. Additions to/utilisation of provisions and impairment losses

Reference should be made to note 10 for details of impairment losses.

Utilisation and revised estimates of provisions for risks and charges include the utilisation and

revised estimates of the provision for losses to complete contracts.

Reference should be made to note 17 for details of additions to the provisions for risks and charges. 24. Other expenses

reporting date average reporting date average

Managers 27 27 26 25

White collars 644 636 567 567

Blue collars 25 24 29 28

Total 696 687 622 620

Q1 2019 Q1 2018

Q1 2019 Q1 2018

Net impairment losses on loans and receivables (18,946) (3,323)

Additions to provisions for risks and charges - (16,182)

Utilisation and revised estimates of provisions for risks and charges 38,609 10,820

Additions to/utilisation of provisions and impairment losses 19,663 (8,685)

Q1 2019 Q1 2018

Travel expenses (480,229) (348,265)

Leases (338,796) (545,367)

Directors' and statutory auditors' fees (162,855) (184,988)

Consulting and other services (1,136,354) (748,416)

Other personnel costs (371,645) (263,027)

Postal expenses (96,522) (83,374)

Cleaning and waste disposal services (78,842) (74,873)

Advertising (486,204) (232,984)

Indirect taxes (160,984) (183,945)

Insurance (131,177) (121,433)

Membership fees (26,283) (29,919)

Prior period expense (2,680) (15,629)

General services and other expenses (208,277) (83,144)

Other expenses (3,680,848) (2,915,364)

46

Consulting and other services mainly include IT, administrative and commercial consultancy fees.

General services and other expenses include costs for general services, guarantees and

settlements in court.

Leases mainly refer to IT equipment. 25. Net financial expense

Interest and commission expense refers to interest paid on credit facilities and bank fees.

Lease interest expense relates to the amortised-cost measurement of lease liabilities under IFRS

16.

Interest expense on non-current loans and financing of €409,433 comprises the effect of amortised-

cost accounting (€387,535) and interest accrued under the existing Agreement (€21,447). The

remainder relates to foreign companies.

Bank interest income accrued on the current account credit balances.

Q1 2019 Q1 2018

Interest and commission expense on credit facilities (30,618) (25,986)

Lease interest expense (74,399) -

Interest expense on loans and financing (409,344) (437,720)

Expense on assets held for trading - (5,306)

Interest expense on trade payables - (86,717)

Financial expense (514,361) (555,729)

Bank interest income 694 226

Interest income on loans and receivables - third parties 35 -

Interest income on loans and receivables - related parties - 550

Gains on assets held for trading 351,476 - - -

Financial income 352,205 776

Net financial expense (162,156) (554,953)

47

OTHER INFORMATION

Events after the reporting period

There are no significant events that occurred after the reporting date.

Related party transactions

The table below, which is presented pursuant to Consob communication no. DEM/6064293 of 28 July 2006, summarises related party transactions, including intragroup transactions. These transactions were carried out at market conditions, consistent with the nature of the goods exchanged or services provided. They were neither atypical nor unusual for the purposes of the above-mentioned communication.

Intragroup transactions include:

- Signature S.r.l.: loan agreement, purchases and sales of goods with Pininfarina S.p.A.;

- Tech Mahindra Ltd: services agreements with Pininfarina Deutschland GmbH and Pininfarina Engineering S.r.l.;

- Tech Mahindra GmbH: lease agreement for equipped office premises with Pininfarina Deutschland GmbH;

- Mahindra & Mahindra Ltd: brand licence agreement and engineering services agreements with Pininfarina S.p.A. and Pininfarina Engineering S.r.l.;

- Ssangyong Motor Company: design services agreement with Pininfarina S.p.A.;

- Automobili Pininfarina GmbH: design and engineering agreement with Pininfarina S.p.A..

In addition to the above figures, Studio Starclex - Studio Legale Associato Guglielmetti, related to Romina Guglielmetti (director of Pininfarina S.p.A.), provided legal assistance to the company for €9,000. Directors’ and statutory auditors’ fees

Assets Liabilities Assets Liabilities Revenue Expense Income Expense

Signature S.r.l. 40,143 - 550,000 - 30,000 - - -

Tech Mahindra Ltd 15,455 96,811 - - 14,400 61,491 - -

Tech Mahindra GmbH 2,394 - - - 60,212 - - -

Mahindra&Mahindra Ltd 1,084,049 - - - 2,531,867 - - -

Mahindra Graphic Research Design S.r.l. - - - - - 143,585 - -

Ssangyong Motor Company - - - - 238,300 - -

Automobili Pininfarina GmbH 5,765,566 - - - 5,268,871 - - -

Total 6,907,607 96,811 550,000 - 8,143,650 205,076 - -

Commercial Financial Operating Financial

(€'000) Q1 2019 Q1 2018

Directors 137 152

Statutory auditors 25 27

Total 162 179

48

Significant non-recurring transactions As required by Consob communication no. DEM/6064293 of 28 July 2006, the effects of non-recurring events or transactions, i.e., those events or transactions that do not occur frequently during the normal course of business, are shown in the tables below:

31.03.2019

31.03.2019,

net of

significant

non-recurring

transactions


Investment property 7,301,464 7,301,464


Right-of-use assets 7,189,483 7,189,483




NON-CURRENT ASSETS 68,976,516 68,975,508


Contract assets 4,188,491 4,188,491




CURRENT ASSETS 72,973,387 71,375,648

TOTAL ASSETS 141,949,903 140,351,157

Share capital and reserves 62,117,537 62,117,537

Loss from continuing operations 413,648 (887,359)

EQUITY 62,531,185 61,230,178

Non-current loans and borrowings 28,416,378 28,416,378

Deferred tax liabilities (18,744) (18,744)

Post-employment benefits and other provisions 5,065,012 4,829,163

NON-CURRENT LIABILITIES 33,462,646 33,226,797

Current loans and borrowings 6,075,308 6,075,308


Trade payables 31,584,878 31,584,878

Current tax liabilities 1,370,823 1,370,823


Other liabilities 322,482 322,482

CURRENT LIABILITIES 45,956,072 45,894,182 00



49

The significant non-recurring transaction is as follows: - Pininfarina Engineering S.r.l.’s acquisition of a business unit from Mahindra Graphic Research Design S.r.l. (which is a related party as it is owned by Mahindra & Mahindra Ltd). The impact of this transaction on the net financial debt and cash flows amounts to €1,597,738. Atypical and unusual transactions As required by Consob communication no. DEM/6064293 of 28 July 2006, the Pininfarina Group specifies that it did not carry out atypical or unusual transactions during the year, as defined in the above-mentioned Communication, according to which atypical and/or unusual transactions are transactions that, because of their significance/material amount, nature of the counterparty, subject, method used to determine the transfer price and timing of the event, could create doubts as to: the accuracy/completeness of the disclosure provided in the financial statements, the existence of a conflict of interest, the safeguarding of corporate assets and the protection of non-controlling investors.

Q1 2019

Q1 2019, net of

significant non-

recurring

transactions


Change in finished goods and contract work in progress 6,129 6,129

Other revenue and income 2,924,269 1,623,262

REVENUE 25,247,003 23,945,996

Net gains on sale of non-current assets and equity investments 50 50





Amortisation and depreciation, impairment losses and provisions (1,135,921) (1,135,921)

Net exchange losses (692) (692)

Other expenses (3,680,848) (3,680,848)

OPERATING PROFIT (LOSS) 712,681 (588,326)


Dividends - -

Share of loss of equity-accounted investees (32,814) (32,814)

PROFIT (LOSS) BEFORE TAXES 517,711 (783,296)

Income taxes (104,063) (104,063)

PROFIT (LOSS) FOR THE PERIOD 413,648 (887,359)

51

Pininfarina S.p.A.

Interim separate financial statements

as at and for the three months ended 31 March 2019

52


31.03.2019 31.12.2018

Land and buildings 33,787,146 33,825,172

Land 7,655,314 7,655,314

Buildings 26,131,832 26,169,858

Leased property - -

Plant and machinery 5,097,345 5,099,715

Machinery 1,600,875 1,648,444

Plant 3,496,470 3,451,271

Leased machinery and equipment - -

Furniture, fixtures and other assets 1,487,188 1,305,721

Furniture and fixtures 243,595 200,621

Hardware and software 814,086 662,401

Other assets, including vehicles 429,507 442,699

Assets under construction - -


Investment property

Goodwill - -

Licences and trademarks 658,278 513,084

Other 5,474,196 5,449,674


Right-of-use assets 256,005 -

Subsidiaries 21,377,212 23,546,353

Associates 571,757 496,732

Joint ventures - -

Other companies 251,717 645

Equity investments 22,200,686 24,043,730


Held-to-maturity investments - -

Loans and receivables 2,226,577 2,325,967

Third parties - -



Non-current financial assets 2,226,577 2,325,967

TOTAL NON-CURRENT ASSETS 72,467,538 73,818,319


Work in progress - -



Contract assets 506,777 838,677

Assets held for trading 13,690,843 13,105,943

Loans and receivables - -

Third parties - -

Related parties - -



Derivatives - -

Trade receivables 23,076,274 13,661,592

Third parties 10,977,350 8,882,383

Related parties 12,098,924 4,779,209

Other assets 9,652,586 8,726,000






TOTAL ASSETS 129,104,336 121,598,870

53


Pursuant to Consob resolution no. 15519 of 27 July 2006, an ad hoc statement of financial position showing related party transactions has not been prepared as these are already shown in the interim separate financial statements schedules. As for transactions with other related parties, such as directors and statutory auditors, “Trade payables - third parties” include accrued fees for the year of €46,583.

31.03.2019 31.12.2018

Share capital 54,271,170 54,271,170

Share premium reserve 2,053,660 2,053,660

Reserve for treasury shares 175,697 175,697

Legal reserve 6,063,759 6,063,759

Stock option reserve 2,093,306 1,911,103

Other reserves 6,879,728 2,646,208

Losses carried forward (885,528) (6,612,936)

Profit (loss) for the period/year (60,534) 5,730,195

EQUITY 70,591,258 66,238,856


Lease liabilities 151,452


Third parties 22,738,560 22,351,025

Related parties - -


Deferred tax liabilities - -

Italian post-employment benefits 3,459,576 2,716,632

Other - -


TOTAL NON-CURRENT LIABILITIES 26,349,588 25,067,657

Bank overdrafts - -


Lease liabilities 104,871


Third parties 3,578,089 3,578,089




Social security charges payable 417,171 678,906

Other 465,825 708,674


Third parties 12,263,227 11,352,177



Trade payables 24,222,767 22,107,737

Direct tax liabilities 284,732 224,671

Other tax liabilities 162,828 143,086

Current tax liabilities 447,560 367,757

Derivatives - -

Provision for product warranty 53,236 53,236

Restructuring provision 176,768 184,454

Other provisions 277,521 290,079


Third parties - -

Related parties - -

Other liabilities - -

TOTAL CURRENT LIABILITIES 32,163,490 30,292,357



54

Income statement

Q1 2019

Of which:

related

parties Q1 2018

Of which:

related

parties

Revenue from sales and services 11,855,891 6,547,670 17,730,310 1,197,891


Change in finished goods 6,129 (3,288) - -

Change in contract work in progress

Change in finished goods - - -

Other revenue and income 1,345,633 442,500 1,784,843 1,205,333

Revenue 13,207,653 6,990,170 19,511,865 2,403,224

Gains on sale of non-current assets and equity investments 50 - 82,855 -

Gain on sale of equity investments - -

Raw materials and components (1,630,630) (2,501,494)

Change in raw materials 54,942 18,015

Inventory write-downs - -

Raw materials and consumables (1,575,688) - (2,483,479) -

Consumables (273,497) (359,984)

External maintenance (249,486) (212,371)

Other variable production costs (522,983) - (572,355) -

External variable engineering services (3,219,021) (2,290,425) (5,468,793) (631,996)


Independent contractors and temporary workers - -

Social security contributions and other post-employment benefits (245,957) (273,737)

Wages, salaries and employee benefits (4,912,512) - (6,169,722) -

Depreciation of property, plant and equipment and investment property (561,009) (500,518)


Depreciation of right-of-use assets (26,796) -


(Additions to)/utilisation of provisions and impairment (losses) and gains - (5,362)

Amortisation, depreciation and impairment losses (641,569) - (750,329) -

Net exchange losses (2,788) (282)

Other expenses (2,224,960) - (1,817,937) -

Operating profit 108,182 4,699,745 2,331,823 1,771,228

Net financial expense (82,157) 2,505 (533,601) 2,685

Dividends - - - -

Share of loss of equity-accounted investees (32,814) -

Profit (loss) before taxes (6,789) 4,702,250 1,798,222 1,773,913

Income taxes (53,745) (58,256)

Profit (loss) for the period (60,534) 4,702,250 1,739,966 1,773,913

55

Statement of comprehensive income

Pursuant to Consob resolution no. 15519 of 27 July 2006, the effects of related party transactions on the income statement of the Pininfarina Group are shown in the table provided above and in the “Other information” section of the notes.

Q1 2019 Q1 2018

Profit (loss) for the period (60,534) 1,739,966

Other comprehensive income (expense):

Items that will not be reclassified to profit or loss:

- Actuarial gains (losses) on defined benefit plans - IAS 19 (2,787) 57,578

- Income taxes - -

- Other - -

Total items of other comprehensive expense that will not be


Items that will or may be subsequently reclassified

to profit or loss:

- Gains (losses) from translation of financial statements of foreign operations - IAS 21 - -

- Other - -

Total items of other comprehensive expense that will be subsequently


Total other comprehensive income (expense), net of tax effect (2,787) 57,578

Comprehensive income (expense) (63,321) 1,797,544

(2,787) 57,578

- -

56

Reclassified income statement

(€’000)

(*) Materials and services are net of utilisations of the provisions for product warranty and risks (€2.9 thousand and €12.6 thousand for the first quarters of 2018 and 2019, respectively). (**) Labour cost is net of utilisations of the restructuring provision (€42.4 thousand and €7.7 thousand for the first quarters of 2018 and 2019, respectively).

As required by Consob resolution no. DEM/6064293 of 28 July 2006, a reconciliation of the data in the interim separate financial statements with those in the reclassified schedules is provided below: - Materials and services include raw materials and components, other variable production costs, external variable

engineering services, exchange rate gains and losses and other expenses. - Amortisation and depreciation comprise amortisation of intangible assets and depreciation of property, plant and

equipment and investment property. - (Additions to)/utilisation of provisions and impairment losses and gains include additions to/utilisation of provisions,

impairment losses and inventory write-downs. - Net financial expense comprises net financial expense and dividends.

Q1 2019 % Q1 2018 % Variation 2018

Revenue from sales and services 11,856 89.76 17,730 90.87 (5,874) 56,554

Change in finished goods 6 0.05 (3) ( 0.02) 9 (15)

Other revenue and income 1,346 10.19 1,785 9.15 (439) 6,684

Revenue 13,208 100.00 19,512 100.00 (6,304) 63,223

Net gains on the sale of non-current assets - - 83 0.43 ( 83) 184

Materials and services (*) (7,600) (57.54) (10,361) (53.10) 2,761 (32,099)

Change in raw materials 55 0.42 18 0.09 37 41

Value added 5,663 42.88 9,252 47.42 (3,589) 31,349

Labour cost (**) (4,913) (37.20) (6,170) (31.62) 1,257 (22,589)

Gross operating profit 750 5.68 3,082 15.80 (2,332) 8,760

Amortisation and depreciation (642) (4.86) (745) (3.82) 103 (2,567)

(Additions to)/utilisation of provisions and impairment (losses) and gains 0 0.00 (5) ( 0.03) 5 264

Operating loss 108 0.82 2,332 11.95 (2,224) 6,457

Net financial expense (82) (0.62) (534) (2.74) 452 (1,580)

Share of loss of equity-accounted investees (33) (0.25) - - (33) (33)

Profit (loss) before taxes (7) (0.05) 1,798 9.21 (1,805) 4,844

Income taxes (54) (0.41) (58) ( 0.29) 4 886

Profit (loss) for the period/year (61) (0.46) 1,740 8.92 (1,801) 5,730

57

Reclassified statement of financial position

(€’000)

Net financial debt

(€’000)

31.03.2019 31.12.2018 Variation 31.03.2018

Net non-current assets (A)

Net intangible assets 6,132 5,963 169 6,127

Net property, plant and equipment and investment property 40,372 40,231 141 40,339

Right-of-use assets 256 0 256 0

Equity investments 22,201 24,044 (1,843) 22,107

Total A 68,961 70,238 (1,277) 68,573

Working capital (B)

Inventories 469 266 203 254

Contract assets 507 839 (332) 1,490

Net trade receivables and other assets 32,729 22,387 10,342 19,195

Assets held for sale 0 0 - 135

Deferred tax assets 1,280 1,255 25 0

Trade payables (16,656) (14,566) (2,090) (18,834)

Contract liabilities (7,566) (7,541) (25) (8,963)

Provisions for risks and charges (508) (528) 20 (589)

Other liabilities (3,411) (3,342) (69) (4,099)

Total B 6,844 (1,230) 8,074 (11,411)

Net invested capital (C=A+B) 75,805 69,008 6,797 57,162

Post-employment benefits (D) 3,460 2,717 743 3,908

Net capital requirements (E=C-D) 72,345 66,291 6,054 53,254

Equity (F) 70,591 66,239 4,352 61,775

Net financial (position) debt (G)

Non-current loans and borrowings 20,663 20,025 638 22,515

Net current financial position (18,909) (19,973) 1,064 (31,036)

Total G 1,754 52 1,702 (8,521)

Total as in E (H=F+G) 72,345 66,291 6,054 53,254

31.03.2019 31.12.2018 Variation 31.03.2018

Cash and cash equivalents 9,241 11,183 (1,942) 25,798

Current assets held for trading 13,691 13,106 585 9,067

Current finance lease liabilities (105) - (105) -

Loans and borrowings - related parties (340) (738) 398 (335)

Current portion of bank loans and borrowings (3,578) (3,578) - (3,494)

Net current financial position 18,909 19,973 (1,064) 31,036

Non-current loans and receivables - related parties 2,227 2,326 (99) 2,123

Non-current finance lease liabilities (151) - (151) -

Non-current bank loans and borrowings (22,739) (22,351) (388) (24,638)

Non-current loans and borrowings (20,663) (20,025) (638) (22,515)

NET FINANCIAL POSITION (DEBT) (1,754) (52) (1,702) 8,521

58

Statement of changes in equity

31.12.2017

Comprehensive

income

Stock

option

reserve

Allocation of

prior year

profit

Proceeds

from the issue

of shares

Capital

increase

transaction

costs 31.03.2018

Share capital 54,271,170 - - - - 54,271,170

Share premium reserve 2,053,660 - - - 2,053,660

Reserve for treasury shares 175,697 - - - - - 175,697

Legal reserve 6,033,331 - - - - - 6,033,331

Stock option reserve 1,172,170 - 182,203 - - - 1,354,373

Other reserves 2,646,208 - - - - - 2,646,208

Losses carried forward (7,165,362) 57,578 - 608,558 - - (6,499,226)

Profit for the period/year 608,558 1,739,966 - (608,558) - - 1,739,966

EQUITY 59,795,432 1,797,544 182,203 - - - 61,775,179

31.12.2018

Comprehensive

expense

Stock

option

reserve

Allocation of

prior year

profit

Merger of

Pininfarina

Extra S.r.l.

Capital

increase

transaction

costs 31.03.2019

Share capital 54,271,170 - - - - - 54,271,170

Share premium reserve 2,053,660 - - - - - 2,053,660

Reserve for treasury shares 175,697 - - - - - 175,697

Legal reserve 6,063,759 - - - - - 6,063,759

Stock option reserve 1,911,103 - 182,203 - - - 2,093,306

Other reserves 2,646,208 - - - 4,233,520 - 6,879,728

Losses carried forward (6,612,936) (2,787) - 5,730,195 - - (885,528)

Profit (loss) for the period/year 5,730,195 (60,534) - (5,730,195) - - (60,534)

EQUITY 66,238,856 (63,321) 182,203 - 4,233,520 - 70,591,258

59


Pursuant to Consob resolution no. 15519 of 27 July 2006, the effects of related party transactions are shown in the “Other information” section of the notes

Q1 2019 Q1 2018

Profit for the year (60,534) 1,739,966

Adjustments:

- Income taxes 53,745 58,256

- Depreciation of property, plant and equipment and investment property 561,009 500,518

- Amortisation of intangible assets 53,764 244,449

- Depreciation of right-of-use assets 26,796 -

- Impairment losses, provisions and change in accounting estimates (10,973) (95,511)

- Gains on the sale of non-current assets (50) (82,855)

- Financial expense 411,959 536,291

- Financial income (329,802) (2,690)

- Dividends - -

- Other adjustments 954,027 90,180

Total adjustments 1,720,475 1,248,638

Change in working capital:

- Increase in inventories (61,071) (14,727)

- (Increase)/decrease in contract work in progress 331,900 (321,615)

- Increase in trade receivables and other assets (90,850) (1,111,709)

- Increase in trade receivables - related parties (6,945,705) (1,683,159)

- Increase in trade payables, other financial liabilities and other liabilities 317,506 3,519,183

- Increase in trade payables - related parties 1,086,804 544,545

- Decrease in advances for contract work in progress and deferred income (36,082) (1,574,528)

- Other changes (9,555) (91,187)

Total changes in working capital (5,407,054) (733,197)

Gross cash flows from (used in) operating activities (3,747,113) 2,255,407

- Financial expense (408,982) (30,691)

- Income taxes - -

NET CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES (4,156,095) 2,224,716

- Purchases of non-current assets and equity investments (496,621) (1,076,799)

- Cash and cash equivalents from merger of Pininfarina Extra 3,338,147

- Proceeds from the sale of non-current assets and equity investments 50 200,500

- Increase in loans and receivables - third parties - -

- Increase in loans and receivables - related parties - (550,000)

- Repayment of loans and receivables - third parties - -

- Repayment of loans and receivables - related parties (18,258) 2,685

- Proceeds from the sale of assets held for trading (584,900) (9,066,948)

- Financial income (24,179) 5

- Dividends collected - -

- Other changes - -

CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES 2,214,239 (10,490,557)

- Proceeds from the issue of shares - -

- Increase in finance lease liabilities and other loans and borrowings - third parties - -

- Increase in other loans and borrowings - related parties - -

- Repayment of finance lease liabilities and other loans and borrowings - third parties - -

- Repayment of other loans and borrowings - related parties - -

- Dividends paid - -

- Other changes - -

CASH FLOWS FROM FINANCING ACTIVITIES - -

TOTAL CASH FLOWS (1,941,856) (8,265,841)

Opening net cash and cash equivalents 11,182,815 34,063,802

Closing net cash and cash equivalents 9,240,959 25,797,961

Of which:

- Cash and cash equivalents 9,240,959 25,797,961

- Bank overdrafts - -

60

OTHER INFORMATION Events after the reporting period

There are no significant events that occurred after the reporting date.

Related party transactions

The table below, which is presented pursuant to Consob communication no. DEM/6064293 of 28 July 2006, summarises related party transactions, including intragroup transactions. These transactions were carried out at market conditions, consistent with the nature of the goods exchanged or services provided. They were neither atypical nor unusual for the purposes of the above-mentioned communication.

Intragroup transactions include:

- Signature S.r.l.: loan agreement and purchases of goods; - Pininfarina Engineering S.r.l.: lease for the equipped premises, secondment agreements,

management fee recharges and services agreements; - Pininfarina Deutschland GmbH: loan agreement; - Pininfarina Shanghai Co Ltd: services agreement, secondment agreement and management fee

recharges; - Pininfarina of America Ltd: secondment agreement and management fee recharges; - Tech Mahindra Ltd: services agreements and recharge of costs incurred by Pininfarina S.p.A. on

the company’s behalf - Mahindra & Mahindra Ltd: brand licence agreement and engineering services agreements; - Automobili Pininfarina GmbH: design and engineering agreement; - Ssangyong Motor Company: design services agreement

In addition to the above figures, Studio Starclex - Studio Legale Associato Guglielmetti, related to Romina Guglielmetti (director of Pininfarina S.p.A.), provided legal assistance to the company for €9,000. Directors’ and statutory auditors’ fees

The total fees to Pininfarina S.p.A.’s key management personnel approximate €0.24 million for the first three months of 2019.

Assets Liabilities Assets Liabilities Revenue Expense Income Expense

Signature S.r.l. 40,143 - 550,000 - 30,000 - - -

Pininfarina Engineering S.r.l. 4,809,745 4,387,280 175,714 339,883 607,069 2,290,425 - -

Pininfarina Deutschland GmbH - - 1,500,863 - - - 2,505 -

Pininfarina Shanghai Co. Ltd 290,349 - - - 258,590 - - -

Pininfarina of America Ltd 227,274 - - - 130,473 - - -

Tech Mahindra Ltd 11,855 5,800 - - - - - -

Mahindra&Mahindra Limited 957,681 - - - 456,867 - - -

Automobili Pininfarina GmbH 5,761,877 - - - 5,268,871 - - -

Ssangyong Motor Company - - - - 238,300 - - -

Total 12,098,924 4,393,080 2,226,577 339,883 6,990,170 2,290,425 2,505 -

Commercial Financial Operating Financial

(€'000) Q1 2019 Q1 2018

Directors 137 87

Statutory auditors 25 25

Total 162 112

61

Significant non-recurring transactions As required by Consob communication no. DEM/6064293 of 28 July 2006, the effects of non-recurring events or transactions, i.e., those events or transactions that do not occur frequently during the normal course of business, are shown in the tables below:

31.03.2019

31.03.2019, net

of significant

non-recurring

transactions



Right-of-use assets 256,005 256,005

Equity investments 22,200,686 24,010,916


Non-current financial assets 2,226,577 1,828,770 -

NON-CURRENT ASSETS 72,467,538 73,426,161 -


Contract work in progress 506,777 506,777



Assets held for sale - -

Cash and cash equivalents 9,240,959 5,886,442 -

CURRENT ASSETS 56,636,798 50,494,746 - -

TOTAL ASSETS 129,104,336 123,920,907 - - -

Share capital and reserves 70,651,792 66,418,272

Loss for the period (60,534) (60,534) - -

EQUITY 70,591,258 66,357,738 - -

-


Deferred tax liabilities - -

Post-employment benefits and other provisions 3,459,576 2,728,689 -

NON-CURRENT LIABILITIES 26,349,588 25,618,701 -



Trade payables 24,222,767 24,515,529

Current tax liabilities 447,560 441,402

Derivatives - -


Other liabilities - - -

CURRENT LIABILITIES 32,163,490 31,944,468 - -

TOTAL LIABILITIES 58,513,078 57,563,169 - -

TOTAL LIABILITIES AND EQUITY 129,104,336 123,920,907 -

62

The significant non-recurring transaction is the merger of Pininfarina Extra S.r.l. into Pininfarina S.p.A.. Atypical and unusual transactions As required by Consob communication no. DEM/6064293 of 28 July 2006, the Pininfarina Group specifies that it did not carry out atypical or unusual transactions during the year, as defined in the above-mentioned Communication, according to which atypical and/or unusual transactions are transactions that, because of their significance/material amount, nature of the counterparty, subject, method used to determine the transfer price and timing of the event, could create doubts as to: the accuracy/completeness of the disclosure provided in the financial statements, the existence of a conflict of interest, the safeguarding of corporate assets and the protection of non-controlling investors.

31.03.2019

Q1 2019, net of

significant non-

recurring

transactions



Change in inventories and contract work in progress 6,129 6,129

Other revenue and income 1,345,633 1,345,633 -

Revenue 13,207,653 13,207,653 -

Gains on sale of non-current assets and equity investments 50 50





Amortisation, depreciation and impairment losses (641,569) (641,569)

Net exchange losses (2,788) (2,788)

Other expenses (2,224,960) (2,224,960) -

Operating profit 108,182 108,182 -


Gain on the extinguishment of financial liabilities - -

Dividends - -

Share of loss of equity-accounted investees (32,814) (32,814) -

Loss before taxes (6,789) (6,789) -

Income taxes (53,745) (53,745) -

Loss for the period (60,534) (60,534) -

pininfarina group interim financial report at 31 march 2019 · 8 design segment in addition to the...

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