CEOThe fiscal year that just ended was a year full of remarkable events.

The Group turnover has substantially stabilized at a value of some 131 Million Euros, lower than the previous year mostly due to the end of the AW101 VIP program. As the AW101 residual activities have been completed, the dedicated Yeovil site has been closed. However, it must be noted that such program has positively contributed to the expansion of the Group know how, creating a valuable background in view of the plan to enter the business jet VVIP Interiors market segment in the future.

Despite the decrease in sales, the Group has continuously generated Economic value and the Value Withheld has remained steady (some 7,6 million Euros), becoming available, in addition to the external mid-term financing, to support the remarkable capital expenditures of the year (11 million Euros), both in product developments and in industrial equipment acquisitions.

With regard to the economic performance for the year, the Adjusted EBITDA was slightly better in percentage (10,4%) than 2013, despite being affected by the decrease in volumes.

In 2014 an improvement of the industrial operations has also been achieved by means of focused investments and a wide implementation of the “Lean Manufacturing” approach. In August, the Canadian operations were relocated nearby into a new, more modern and functional facility, which better meets the requirements of the contracts MAG has been awarded in recent years.

About the significant events of the year I would like to highlight:

  • the award of the Bell Helicopter contracts for the development and manufacturing of the Bell 525 Interiors as well as of the Bell 505 Flight Controls, Hydraulic System and Servo actuators, with the first prototypes already been delivered to the customer;

  • the award of the Airbus Helicopters contracts for the development and manufacturing of the X4 mechanical control rods, as well as for the design and development of the aircraft Interiors;
  • the issuing of the “Intention to Proceed” letter from AgustaWestland to MAG for the development and production activities of the AW189 VIP and for the AW139 VIP restyling;
  • the unveiling of the Bell 429 VVIP MAGnificent Interior at the Anaheim (USA) Heli-Expo Air Show, which was received with great expressions of interest and has already generated some initial firm orders;
  • the completion of the first 800 mt asphalt extension of the Monteprandone airstrip (500 mt already completed and additional 300 mt currently on site), which is viewed as an essential asset for the site development as an air center;

I would also like to mention the delivery of the first Bell 525 Landing gear system, of the first Gulfstream P42 Landing gear and the first flights of the Hanwha unmanned LAV equipped with a MAG proprietary electomechanical steering and retract wheeled landing system.

From an organizational standpoint, the new Aircraft Services (AS) Division was created, aiming at the development of the end-customers and operators business segment. This Division is expected to be a driver for significant growth in the years to come.

Let me finally point out that this Annual Report, which is submitted to your attention, has been prepared for the first time in the form of a “Combined Report”, which

integrates financial data with other information, so to provide a better understanding of the Group from different perspectives, including its attitude to generate economic value and to protect the sustainability of its business model.

In conclusion I would say with confidence, that, also thanks to the competence and dedication of our human resources, a key factor of our success, the business opportunities of this past year have made the Group stronger and more prepared to take on the new challenges of the years to come.