SORIN-S.P.A.

At a meeting held today and chaired by Rosario Bifulco, the Sorin S.p.A. (MIL:SRN) Board of Directors approved the Company’s Interim Financial Report as of September 30, 2014.

“Our third quarter revenues came in within the previously communicated guidance, despite temporary production capacity limitation for Perceval^TM . The top-line performance was driven by positive results of the cardiopulmonary products and by continuous improvement of the CRM business. Net earnings in the quarter were in line with our expectations taking into account the negative impact of FX and the continuous investments in growth initiatives," said André-Michel Ballester, Chief Executive Officer, Sorin Group. “During the quarter, we announced the partnership with Respicardia, a US-based developer of implantable therapies designed to improve respiratory and cardiovascular health, further demonstrating our commitment to developing innovative solutions for heart failure patients. "

Results for the third quarter of 2014

In the third quarter of 2014 , Sorin Group posted revenues of €183.5 million , up 2.2% at comparable foreign exchange over the third quarter of 2013.

• The Cardiac Surgery Business Unit (cardiopulmonary products for open heart surgery and heart valve repair or replacement products) reported revenues of €122.2 million , up 3.0%³ compared to the third quarter of 2013. Heart-lung machines performed in line with the market. The oxygenator and autotransfusion system segments both reported positive momentum in every major market. The oxygenator business benefitted from the roll-out of Inspire^TM in Europe and in the US. The tissue valves business posted negative results, due to a still weak performance of traditional valves in the US and a short-term limitation in production capacity for Perceval^TM at the Saluggia plant. In the third quarter, the mechanical valves business was negatively impacted by lower volumes in Europe and in the US, partially balanced by higher volumes in emerging markets.

During the quarter, Sorin Group received CE mark certification for its innovative stented aortic CROWN PRT^TM , featuring surgeon-friendly design, optimal hemodynamics and the patented PRT technology. In the quarter, Sorin Group also obtained U.S. Food and Drug Administration (FDA) approval for Solo Smart^TM , the first aortic valve with a removable stent, providing native-like performance with the ease of implant of a stented valve.

In October, the results of the Perceval CAVALIER Trial and of the Pooled European Multicenter Experience were presented at the 28th Annual Meeting of the European Association for Cardio-Thoracic Surgery (EACTS) in Milan (Italy) showing Perceval’s durability, excellent hemodynamic performance, low complication rates and ease of implant. At EACTS Annual Meeting, Sorin Group also presented the results of the European and North American cohort study on the Freedom Solo valve, demonstrating its safety and excellent clinical and hemodynamics.

Finally, in October, Sorin Group announced also CE mark and first implant of its new MEMO 3D ReChord mitral valve annuloplasty ring that is now commercially available in Europe.

(Euro million)
		Q3 14 Revenues		Underlying growth %*
Heart-lung machines		25.6		1.8%
Oxygenators		50.9		6.0%
Autotransfusion machines and devices		16.1		6.6%
Mechanical Heart Valves		12.1		-5.1%
Tissue Heart Valves		14.5		-1.8%
Other		3.0		ns
Total Cardiac Surgery		122.2		3.0%

(*) For details, see the table entitled “Consolidated revenues by Business Units”

• The Cardiac Rhythm Management Business Unit (implantable devices to manage cardiac rhythm disorders) reported revenues of €60.6 million , a 0.6%⁴ increase compared to the third quarter of 2013. In a still challenging pricing environment, the CRM business, excluding Japan, grew by approximately 5% in the quarter, driven by SONR^TM , KORA^TM 100 and REPLY^TM 200 systems. The KORA^TM 100 family is expected to be approved in Japan in the fourth quarter of 2014.

(Euro million)
		Q3 14 Revenues		Underlying growth %*
High Voltage (defibrillators and CRT-D)		21.8		-1.3%
Low Voltage (pacemakers)		35.9		0.5%
Other		2.9		ns
Total Cardiac Rhythm Management		60.6		0.6%

(*) For details, see the table entitled “Consolidated revenues by Business Units”

Gross profit in the third quarter of 2014 was €105.1 million, or 57.3% of revenues, compared to 58.9% in the third quarter of 2013. The decrease is due to an unfavorable country mix and pricing erosion in CRM globally.

Selling, General and Administrative (SG&A) expenses were €69.2 million, compared to €67.4 million in the third quarter of 2013. At constant foreign exchange rates, SG&A decreased by 0.7% over the same period of 2013.

Research and Development (R&D) expenses rose by 11.2% to €19.8 million (10.8% of revenues) compared to €17.8 million (9.9% of revenues) in the third quarter of 2013.

EBITDA in the third quarter of 2014 was €28.1 million, or 15.3% of revenues, compared to €32.1 million, or 17.8% of revenues in the third quarter of 2013, reflecting the negative impact of foreign exchange and continuous investments in growth initiatives.

EBIT was €14.5 million compared to €19.4 million in the third quarter of 2013. EBIT before special items was €16.1 million compared to €20.9 million in the third quarter of 2013. Special items were negative for €1.7 million in the third quarter of 2014 (see details in attached table).

Net financial charges were €1.8 million compared to €1.5 million in the third quarter of 2013. On a run-rate basis, the financial charges in the third quarter of 2014 were substantially flat over the same period of 2013.

Net profit was €9.7 million compared to €14.0 million in the third quarter of 2013.

Adjusted net profit ⁵ was €11.7 million compared to €15.5 million in the third quarter of 2013. Adjusted net profit included a €1.4 million impact from New Ventures and reflected a €1.8 million unfavorable foreign exchange effect.

Net financial debt as of September 30, 2014 was €113.2 million compared to €109.4 million as of June 30, 2014 (€91.3 million as of September 30, 2013). Special items for the period were negative for €11.2 million (see details in attached table).

In the third quarter of 2014, the Company’s free cash flow ⁶ was €7.4 million.

Consolidated results for the first nine months of 2014

In the first nine months of 2014, Sorin Group reported revenues up 2.8%⁷ to €550.4 million, Gross Profit of €319.9 million or 58.1% of revenues (59.1% in the same period of 2013), EBITDA of €83.5 million or 15.2% of revenues (16.4% in the same period of 2013) and Adjusted Net profit⁵ of €34.1 million or 6.2% of revenues (6.9% in the same period of 2013).

Significant event occurring after September 30, 2014

In October 2014 Sorin Group announced its initial investment in Respicardia, a US-based developer of implantable therapies to improve respiratory and cardiovascular health, for $20 million. Under the terms of the transaction, Sorin Group also acquired the exclusive right to distribute Respicardia’s rem edē® System for the next five years in selected European countries and an exclusive option to acquire Respicardia in the future. The rem edē® System, the first fully implantable device for the treatment of central sleep apnea, received CE Mark approval in 2010 and is currently being evaluated in an FDA approved randomized, controlled IDE pivotal trial.

Guidance for the full year of 2014

Sorin Group estimates a negative impact on annual revenues of approximately €5 million for the temporary production capacity limitation of Perceval and confirms 2014 Adjusted Net profit full-year guidance between €55-60 million.

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The corporate officer responsible for the company’s financial reports, Demetrio Mauro, declares, pursuant to Paragraph 2 of Article 154-bis of the Consolidated Law on Finance that the accounting information contained in this press release corresponds to the documented results and the accounting books and records.

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In addition to the conventional indicators recommended by the IFRS, this press release provides alternative performance indicators. These indicators should not be considered as replacements for the conventional indicators recommended by the IFRS, but rather as an additional source of information, representative of the income statement, balance sheet and financial position parameters used internally in the decision-making process. An explanation of the meaning and structure of these alternative performance indicators is provided in the Annual Report as of December 31, 2013. The alternative performance indicators are the same as shown in the Annual Report as of 31 December 2013, with the exception of the Adjusted net profit, which includes as special items also "income / (expenses) from investments in affiliates and other companies" for the portion relating to investments in business development. The data comparison for previous periods have been modified and made comparable accordingly.

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This press release contains forward-looking statements. These statements are based on the Group’s current expectations and projections about future events and, by their nature, are subject to inherent risks and uncertainties. They relate to events and depend on circumstances that may or may not occur or exist in the future, and, as such, undue reliance should not be placed on them. Actual results may differ materially from those expressed in such statements as a result of a variety of factors, including: continued volatility and further deterioration of capital and financial markets, changes in commodity prices, changes in general economic conditions, economic growth and other changes in business conditions, changes in laws and regulations (both in Italy and abroad), and many other factors, most of which are outside of the Company’s control.

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About Sorin Group

Sorin Group (Reuters Code: SORN.MI), is a global medical device company and a leader in the treatment of cardiovascular diseases. The Company develops, manufactures and markets medical technologies for cardiac surgery and for the treatment of cardiac rhythm disorders. With over 3,500 employees worldwide, the Company focuses on two major therapeutic areas: Cardiac Surgery (cardiopulmonary products for open heart surgery and heart valve repair or replacement products) and Cardiac Rhythm Management (pacemakers, defibrillators, cardiac resynchronization devices). Every year, over one million patients are treated with Sorin Group devices in more than 80 countries.

For more information, please refer to www.sorin.com

¹ At comparable exchange rates and perimeter
² Adjusted net profit: net profit before the after-tax non-recurring income and expenses (special items)
³ At comparable exchange rates and perimeter
⁴ At comparable exchange rates and perimeter
⁵ Adjusted net profit: net profit before the after-tax non-recurring income and expenses (special items)
⁶ Free cash flow: net profit + depreciation, amortization and writedowns ± ∆ working capital – investments. This account is net of the impact of special items
⁷ At comparable exchange rates and perimeter

Contact:

Gabriele Mazzoletti, Tel: +39 02 69969785
Mobile: +39 348 9792201
Director, Corporate Communications
Sorin Group
e-mail: corporate.communication@sorin.com
or
Francesca Rambaudi, Tel: +39 02 69969716
Director, Investor Relations
Sorin Group
e-mail: investor.relations@sorin.com

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