April 5, 2019

Letter from Dr. Liberali to shareholders

Dear Shareholders,
On April Fools’ Day in 2015 we presented to the financial world the incorporation and merger of ISI (Industrial Stars of Italy SpA), into LU-VE SpA, obtaining the conditions for LU-VE to be listed on the AIM market of the Milan Stock Exchange.

At that time I referred to the operation as “an act of love” by the shareholding families towards LU-VE Group, for the reason that, while it brought in a capital sum of €50 million entirely destined for company development programmes, it also partially transferred power away from the Shareholders.

Now, four years later, I can certainly say that this venture was not a fake news joke!

By making gruelling commitments in terms of costs and sheer hard work, we achieved listing on the MTA (Borsa Italiana's Main Market) in July 2017. These four years saw our revenues grow significantly for internal lines (over €66 million) and also for external lines through the acquisition of Spirotech in India and Zyklus in the USA (for more than €25 million).
Consolidated sales for 2018 reached €306.9 million, compared with €215.5 million in 2014.
Net income was €16.1 million, compared with €10.9 million in 2014.
The detailed 2018 results are available in the report published after the Board Meeting of 22 March.
The first quarter of 2019 has begun positively, although in a less favourable economic climate which will be an active challenge to us in the next few months.
We are putting the finishing touches to the acquisition of the “Air” division of the Swedish multinational Alfa Laval, which has annual sales of around €100 million; this will put LU-VE Group amongst the world leaders in the field of quality components for heat exchanger equipment and systems in the commercial and industrial sectors. The operation involves the entire company structure and will be concluded by the end of the next quarter.
These results are due to the initiative and the commitment of the Managing Director, Executive Management, Directors and all staff. I want to thank them wholeheartedly.

We are continuing our habitual dedication to the development of innovative products which are also environmentally-friendly and we have significantly increased our production capacity in Poland and China; we are doing all this within an organization which pays great attention to the development of the intellectual capital of “women, men and ideas”, which I continue to consider the primary asset of LU-VE Group.

With best regards

Iginio Liberali
President of LU-VE Group