Atlantia : Board approves Atlantia Group’s Interim report for six months ended 30 June 2016

Press Release

BOARD APPROVES ATLANTIA GROUP'S INTERIM REPORT FOR SIX MONTHS ENDED 30 JUNE 2016

Consolidated results(1)

• Motorway traffic on Group's Italian network up 3.8% in H1 2016

• Increase in traffic using overseas network H1 2016 totals 1.9%, after negative impact of crisis in Brazil

• Passenger traffic at Aeroporti di Roma up 2.8% in H1 2016

• Gross operating profit (EBITDA) amounts to €1,578m for H1 2016, up 4% (up 5% on like- for-like basis), also after decline in turnover at industrial companies(2)

• Profit attributable to owners of parent, totalling €413m, up 10% (up 5% on like-for-like basis)

• Group capital expenditure totals €566m in H1 2016 (down 14% essentially due to opening of

  Variante di Valico)

• In addition to the reported amounts in the consolidated financial statements, this press release also presents and analyses alternative performance indicators ("APIs"), such as EBITDA, operating cash flow and capital expenditure, etc.. A detailed description of the principal APIs, including an explanation of the term "like-for-like basis", used in the following consolidated financial review, is provided below.

• A reduction of €17m in terms of EBITDA.

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  1

  • Operating cash flow(3)of €1,095m in H1 2016 up 15% on H1 2015 (up 4% on like-for-like basis)

  • Net debt as at 30 June 2016 totals €10,491m, up €104m compared with 31 December 2015

    Rome, 4 August 2016 - Today's meeting of the Board of Directors of Atlantia SpA, chaired by Fabio Cerchiai, has approved the Atlantia Group's interim report for the six months ended 30 June 2016 ("H1 2016"), which will be published within the deadline established by the relevant statutory requirements, together with the results of the audit currently in progress. The consolidated accounts presented in the interim report have been prepared in accordance with the IFRS in effect at 30 June 2016.

    Operating review for the principal Group companies

    Key performance indicators by operating segment(4)

    €M

    ITALIAN MOTORWAYS OVERSEAS MOTORWAYS ITALIAN AIRPORTS

    ATLANTIA AND

    OTHER ACTIVITIES

    ELIMINATIONS AND CONSOLIDATION ADJUSTMENTS

    TOTAL ATLANTIA GROUP

    H1 2016	H1 2015	H1 2016	H1 2015	H1 2016	H1 2015	H1 2016	H1 2015	H1 2016	H1 2015	H1 2016	H1 2015
    REPORTED AMOUNTS External revenue	1,844	1,755	255	280	399	370	68	90	-	-	2,566	2,495
    Intersegment revenue	6	6	-	-	-	1	206	270	-212	-277	-	-
    Total revenue	1,850	1,761	255	280	399	371	274	360	-212	-277	2,566	2,495
    EBITDA	1,156	1,075	188	210	230	212	4	21	-	-	1,578	1,518
    Operating cash flow	759	663	164	176	169	156	3	-40	-	-	1,095	955
    Capital expenditure	311	445	72	88	172	114	16	12	-5	-	566	659

    Italian motorways

  • Traffic up 3.8% overall on H1 2015 (up 3.3% after stripping out leap-year effect)

  • Operating revenue for H1 2016 amounts to €1,850m, up €89m on H1 2015 (up 5%), essentially reflecting traffic growth of 3.8%, application of annual toll increases (1.09% for Autostrade per l'Italia)and consolidation of Autostrada Tirrenica from September 2015

• Operating cash flow is calculated as profit for the period + amortisation/depreciation +/- impairments/reversals of impairments of assets +/- provisions/releases of provisions + other adjustments + financial expenses from discounting of provisions +/- share of profit/(loss) of investees accounted for using equity method +/- (losses)/gains on sale of assets +/- other non-cash items +/- portion of net deferred tax assets/liabilities recognised in profit or loss.

• A detailed description of the identified operating segments for the Atlantia Group is provided below.

   EBITDA for H1 2016 of €1,156m up €81m (8%) on H1 2015

• Capital expenditure of €311m

  Traffic

  Traffic on the Group's Italian network in the first six months of 2016 (measured in kilometres travelled) is up 3.8% on the same period of the previous year. The number of kilometres travelled by vehicles with 2 axles is up 3.6%, with the figure for those with 3 or more axles up 5.1%. After adjusting for the leap-year effect, the increase in kilometres travelled is 3.3%.

  Capital expenditure

  Autostrade per l'Italia and the other companies included in the "Italian motorways" segment invested a total of €311m in the first half of 2016, marking a reduction of €134m (30%) compared with the first half of 2015. The difference primarily reflects completion, in 2015, of the main works forming part of the Variante di Valicoproject and of works, in the Milan area, completed and opened to traffic in April 2015 on the occasion of the Milan Expo.

  The following works proceeded in the first half of 2016:

• the completion of off carriageway works for the Variante di Valico;

• work on widening the A1 between Barberino and Florence North to three lanes and the completion of off carriageway works on the Florence North-Florence South section;

• completion of the A14 Rimini-Porto S. Elpidio on the sections between Senigallia and Ancona North and Ancona North and Ancona South.

  Investment in major works by the Group's other Italian operators almost entirely relates to works carried out by Autostrada Tirrenica on approximately 15 km of the Civitavecchia-Tarquinia South section, opened to traffic at the end of March 2016.

  €m	H1 2016	H1 2015	% increase/ (decrease)
  Autostrade per l'Italia -projects in Agreement of 1997	104	167	-38%
  Autostrade per l'Italia - projects in IV Addendum of 2002	89	146	-39%
  Investment in major works by other operators	19	9	111%
  Other capital expenditure and capitalised costs (staff, maintenance and other)	80	112	-29%
  Total investment in infrastructure operated under concession	292	434	-33%
  Investment in other intangible assets	7	3	133%
  Investment in property, plant and equipment	12	8	50%
  Total investment in motorways in Italy	311	445	-30%

  Overseas motorways

• Traffic up 1.9% overall on H1 2015 (up 1.4% after stripping out leap-year effect), reflecting growth of 5.6% in Chile and 12.1% in Poland, compared with a 2.4% decline in Brazil(5)

• Operating revenue from Group's overseas motorways business amounts to €255m, down 9% on H1 2015, reflecting overall negative impact of average exchange rates for the period (up 6% on like-for-like basis)

• EBITDA totals €188m (down 10% on H1 2015); at constant average exchange rates, EBITDA is up 4%

• Capital expenditure totals €72m

Chile

Traffic on the motorways operated by the Group's Chilean operators in the first half of 2016, measured in terms of kilometres travelled, rose by a total of 5.6%. Operating revenue for the first half of 2016 amounts to a total of €125m, up 3% on the first half of 2015, benefitting partly from the toll increases that came into effect from January 2016. At constant exchange rates, operating revenue is up 13%. EBITDA of €87m is up 12% on the first half of 2015 (up 23% at constant exchange rates).

Capital expenditure amounts to a total of €40m for the first half of 2016. Around 61% of the works to be carried out as part of the Santiago Centro Orienteupgrade programme has been completed. The programme involves investment of approximately €256bn pesos in the section of motorway operated by Costanera Norte.

Brazil

Traffic on the network operated by the Brazilian operators consolidated by the Group fell 2.4% in terms of kilometres travelled in the first half of 2016. Operating revenue for the first half of 2016 amounts to €119m, down 18% compared with the first half of 2015. At constant exchange rates, revenue is up 2%. Toll revenue for the first half of 2016 benefitted from the annual toll increases applied by the two operators in the State of Sao Paulo from July 2015 and by the operator, Rodovia MG050, in the State of Minas Gerais from June 2015.

EBITDA of €76m is down approximately €32m (30%) on the first half of 2015. The reduction is primarily due to the negative impact of exchange rate movements, in addition to an increase in

1. After stripping out the leap-year effect, traffic in the first half of 2016 (measured in kilometres travelled) is up 5.1% in Chile, up 11.6% in Poland and down 2.9% in Brazil.