protection measures adopted by the various governments entailing restrictions which impacted the regular performance of economic, production and commercial activities.

Although uncertainties remain as to the future of the health emergency and the impacts it may have, MAG’s directors have put in place all measures and actions necessary to ensure the group can continue to operate and the careful monitoring of the ability of the parent and MAG group as a whole to meet its commitments and obligations.

These measures comprise both the risk mitigation strategies reported in the sections on risk management and the timely review of budgets and business plans in view of the changing conditions for the achievement of short, medium and long-term goals.

Despite the challenging economic scenario caused by the health emergency,

  • there were no current or potential impacts such to compromise the going concern assumption;
  • it was not necessary to amend the carrying amounts of assets and liabilities in the 2018/19 financial statements approved just before the outbreak began;
  • operations continued largely as normal in 2019/20 and the results are in line with the budgets drawn up by the various production sites.

The performance of the various business areas was solid, with volumes of the Aircraft Systems segment in line with those of the previous year and an improvement in the Cabin Comfort business line of the Aircraft Services segment to volumes consistent with its operating capacity.

Turnover levels should remain consistent in the current year, despite the aforesaid uncertainties related to the general scenario and the financial and sector context.

The backlog at the reporting date adequately covers the budget for the year, on the assumption that the production plans currently notified by the main OEMs are confirmed in 2021.

The group’s strategies provide for some major investments, including the purchase of the Italian industrial buildings (currently held under lease) and the completion of certain functional upgrades to the North American facilities.

The group’s 2020 – 2024 business plan approved in February 2020 is confirmed by all the fundamentals, which should enable the group to achieve those steady growth objectives that are the result of the commercial strategies and the production and technological choices of recent years.