SOCIETÀ INIZIATIVE AUTOSTRADALI E SERVIZI S.P.A. PRESS RELEASE
SIAS BOARD OF DIRECTORS APPROVES THE SEPARATE AND
CONSOLIDATED FINANCIAL STATEMENTS AS AT 31 DECEMBER 2015
Key consolidated economic and financial results
Total revenues of EUR 1.1 billion (+5.9%)
Net profit: EUR 161 million (+12.2%)
Traffic increased by 3.17%
EBITDA: EUR 646 million (+6.1%)
Investments in motorway infrastructures: EUR 209 million
Net financial indebtedness: EUR 1,581 million (an improvement of EUR 63 million)
Dividend
Final dividend of EUR 0.18 per share: total dividend in 2015 - including the interim dividend of EUR 0.14 per share, paid in November 2015 - EUR 0.32 per share, for a total of EUR 73 million.
Shareholders' Meeting: called for 21 April 2016 (on single call).
Tortona, 10 March 2016 The SIAS Board of Directors, which met today, reviewed and approved the "Separate and Consolidated Financial Statements as at 31 December 2015".
Principal highlights
In FY 2015, "turnover" amounts to EUR 1.1 billion (+5.9%) at Group level.
The rise in traffic (+3.17%) recorded in 2015 marks the consolidation of a positive trend already seen in the previous year. This change, along with the higher tolls recognised as of 1 January 2015 (moreover limited to only the expected inflation rate: +1.5%), triggered an increase in net toll revenues of EUR 41.7 million (+4.62%) which, along with a drop in "other motorway revenues" (EUR -0.9 million) and growth in "operating costs" (EUR +7.6 million, primarily due to higher maintenance costs and winter services), resulted in an increase in the "motorway sector" gross operating margin of roughly EUR 33.2 million.
Taking into account the change in the contribution of "ancillary sectors" (EUR +4.1 million), gross operating margin rose by EUR 37.3 million in 2015, totalling EUR 645.9 million.
The recognition in 2015 of certain non-recurring items (insurance refunds, extraordinary contributions, "one-off" provisions, etc.) resulted in an "adjusted gross operating margin" of EUR 651.8 million for 2015 (EUR 598.3 million in 2014 net of non-recurring items.).
The increase in the "gross operating margin" (EUR +53.4 million, including "non-recurring items"), which was offset by the increase in amortisation/depreciation allocated in the period (EUR +18 million) and the drop in financial income (EUR -4.4 million), resulted in an improvement in "profit assigned to the Parent Company's Shareholders" of approximately EUR 17.5 million (which amounts to EUR 160.7 million), net of the related tax effect.
The operating cash flow - up by approximately EUR 38 million compared to the previous financial year- amounted to EUR 458.4 million.
The "adjusted net financial indebtedness" as at 31 December 2015 - showing an improvement of approximately EUR 63.4 million compared to 31 December 2014 - totalled EUR 1,581 million (EUR 1,644.4 million as at 31 December 2014).
The investments in motorway infrastructures made in 2015 amounted to approximately EUR 209 million.
ANALYSIS OF KEY ECONOMIC-FINANCIAL FIGURES
TRAFFIC PERFORMANCE
The following table shows the traffic performance for each single Licensee:
(millions vehicle/km) | 1/1-31/12/2015 | 1/1-31/12/2014 | Changes | ||||||
Company | Light vehicles | Heavy vehicles | Total | Light vehicles | Heavy vehicles | Total | Light vehicles | Heavy vehicles | Total |
SATAP S.p.A. - A4 Stretch | 1,653 | 535 | 2,188 | 1,589 | 517 | 2,106 | 4.02% | 3.47% | 3.88% |
SATAP S.p.A. - A21 Stretch | 1,327 | 626 | 1,953 | 1,290 | 605 | 1,895 | 2.87% | 3.54% | 3.08% |
SAV S.p.A. | 268 | 73 | 341 | 255 | 72 | 327 | 5.17% | 2.69% | 4.62% |
Autostrada dei Fiori S.p.A. | 956 | 270 | 1,226 | 948 | 260 | 1,208 | 0.84% | 4.02% | 1.52% |
SALT S.p.A. | 1,477 | 357 | 1,834 | 1,436 | 348 | 1,784 | 2.84% | 2.44% | 2.76% |
Autocamionale della Cisa S.p.A. | 618 | 185 | 803 | 593 | 182 | 775 | 4.22% | 1.59% | 3.60% |
Autostrada Torino-Savona S.p.A. | 747 | 155 | 902 | 724 | 148 | 872 | 3.27% | 4.50% | 3.48% |
Autostrada Asti-Cuneo S.p.A. | 104 | 32 | 136 | 98 | 30 | 128 | 5.51% | 6.06% | 5.64% |
Total | 7,150 | 2,233 | 9,383 | 6,933 | 2,162 | 9,095 | 3.13% | 3.31% | 3.17% |
As shown in the table above, traffic data for FY 2015 - with reference to the "light vehicles" and "heavy vehicles" categories - showed further consolidation in the positive trend already witnessed in the previous year. More specifically, in FY 2015 traffic increased by a total of 3.17% (light vehicles: +3.13%; heavy vehicles: +3.31%).
GROUP ECONOMIC DATA
The comparison between revenue and expenditure items for 2015 and 2014 reflects both the consolidation of SIAS Parking S.p.A. (and its subsidiary Fiera Parking S.p.A.) and Brescia Milano Manutenzioni S.c.ar.l. starting from 1 January 2015 and the deconsolidation of CIV S.p.A. (which was sold in May 2014).
(amounts in thousands of EUR) | 2015 | 2014 | Changes |
Motorway sector revenue - operating activities (1) | 974,317 | 934,373 | 39,944 |
Construction and engineering sector revenue (2) | 1,577 | 5,655 | 4,078 |
Technology sector revenue | 67,095 | 50,344 | 16,751 |
Parking sector revenue (3) | 6,368 | - | 6,368 |
Other revenues (4) | 38,532 | 36,734 | 1,798 |
Total turnover | 1,087,889 | 1,027,106 | 60.783 |
Operating costs (1)(2)(4) | (441,970) | (418,537) | (23,433) |
Gross operating margin | 645,919 | 608,569 | 37,350 |
EBITDA margin % | 59% | 59% | |
Non-recurring items | 5,836 | (10,236) | 16,072 |
"Adjusted" gross operating margin | 651,755 | 598,333 | 53,422 |
Net amortisation/depreciation and provisions | (293,274) | (276,805) | (16,469) |
Write-down of goodwill | (1,619) | - | (1,619) |
Operating income | 356,862 | 321,528 | 35,334 |
Financial income | 28,420 | 31,275 | (2,855) |
Financial charges | (127,085) | (129,619) | 2,534 |
Capitalised financial charges | 24,566 | 22,840 | 1,726 |
Write-down of equity investments | (2,633) | (10,366) | 7,733 |
Profit (loss) of companies accounted for by the equity method | (1,342) | 12,156 | (13,498) |
Net financial income | (78,074) | (73,714) | (4,360) |
Profit before tax | 278,788 | 247,814 | 30,974 |
Income taxes (current and deferred) | (96,167) | (83,999) | (12,168) |
Profit (loss) for the period | 182,621 | 163,815 | 18,806 |
| 21,931 | 20,667 | 1,264 |
| 160,690 | 143,148 | 17,542 |
Amounts net of the fee/additional fee payable to ANAS (EUR 72.4 million in 2015 and EUR 70.3 million in 2014).
With regard to motorway companies, IFRIC 12 sets out full recognition in the income statement of costs and revenues for "construction activity" concerning non-compensated revertible assets. In order to provide a clearer representation in the table above, these components - amounting to EUR 208.4 million in 2015 and EUR 223.5 million in 2014 - were reversed for the same amount from the corresponding revenue/cost items.
Based on the fact that a "guaranteed minimum amount" is acknowledged by the Granting Body, IFRIC 12 sets out the following: (i) the recognition in financial statements of a financial loan for the discounted amount of minimum cash flows guaranteed by the Granting Body; (ii) the decrease in revenues with regard to the portion attributable to the guaranteed minimum amount; and (iii) the recognition of a financial income against said financial loans. With regard to above, proceeds from parking activities and the gross operating margin of the subsidiary Fiera Parking S.p.A. were reduced by EUR 3.9 million in 2015, due to the so-called "guaranteed minimum amount".
Amounts net of costs/revenues for reversals were EUR 7.1 million in 2015 (EUR 4.4 million in 2014)
In FY 2015, "turnover" amounts to EUR 1.1 billion (+5.9%) at Group level.
The item "motorway sector revenue" totalled EUR 974.3 million (EUR 934.4 million in FY 2014) and breaks down as follows:
(amounts in thousands of EUR) | 2015 | 2014 | Changes |
Net toll revenues | 945,445 | 903,699 | 41,746 |
Rental income - Royalties from service areas | 28,872 | 30,674 | (1,802) |
Total motorway sector revenue | 974,317 | 934,373 | 39,944 |
The increase in "net toll revenues", equal to EUR 41.7 million (+4.62%), was due to the growth in traffic volumes for EUR 28.4 million (this 3.17% increase had an effect on "net toll revenues" equal to 3.14% if considering the traffic/toll mix) and to an increase in tolls as of 1 January 2015 for EUR 13.3 million (+1.48%)(•).
The decrease in "rental income - royalties from service areas" was due to the decrease in consumption in service areas and the new economic conditions agreed upon the extension of part of the sub-concession agreements.
The decrease in revenue from the "construction and engineering" sector was due to both lower activities carried out for third parties and the deconsolidation of CIV S.p.A.
The "technology" sector, taking into account the consolidation of Brescia Milano Manutenzioni S.c.ar.l. starting from this year (EUR +2.6 million), showed an increase in activities carried out for third parties, with a consequent increase in operating costs. This change can mainly be ascribed to the works carried out on the Tangenziale Esterna Est di Milano (Milan East Outer Ring Road) (completed in the first half of 2015) and the maintenance and management of the Brescia-Bergamo-Milan motorway section.
The item "parking sector revenue" refers to the payments received (net of the so-called "guaranteed minimum amount") by Fiera Parking S.p.A. The related revenue and expenditure items have been consolidated since 1 January 2015. The 2015 revenue reflects the benefit from the "EXPO" event held at Milan Fiera from May through October.
The change in the item "operating costs" (EUR +23.4 million) was due to (i) the increase in the costs of companies belonging to the motorway sector (EUR +7.6 million), which was mainly due to increased maintenance activities as well as higher costs for winter services, (ii) the increase in "operating costs" due to the consolidation of Fiera Parking S.p.A. (EUR +3.6 million) and (iii) the growth in costs for the technology sector, partially offset by lower costs in the construction and engineering sector.
With regard to the above, the "gross operating margin" increased by EUR 37.3 million and reflects the changes in the Group's operating sectors. More specifically:
(amounts in millions of EUR) | FY 2015 | FY 2014 | Change |
| 612.9 | 579.7 | 33.2 |
| 5.0 | 4.8 | 0.2 |
| 30.9 | 28.6 | 2.3 |
| 2.8 | - | 2.8 |
Services sector (holding companies) (5.7) (4.5) (1.2)
645.9 608.6 37.3
In FY 2015, the positive balance in "non-recurring items" of EUR 5.8 million refers to: (i) for EUR 2 million, an insurance refund (received from the subsidiary Autostrada dei Fiori S.p.A. for expenses incurred for flooding events that occurred in January 2014 on the managed section), (ii) for EUR 1.4 million, an extraordinary contribution granted to Fiera Parking S.p.A., (iii) for EUR 3.5 million, "one- off" income - which was recorded based on a favourable ruling - of risk provisions set aside in FY 2011 by the subsidiaries SATAP
S.p.A. and Autocamionale della Cisa S.p.A. with regard to integration requests of sub-concession fees for the financial years 2008- 2009-2010 and (iv) the amount recognised to a former Director as part of a settlement agreement (EUR 1 million). In 2014, that same item (equal to EUR -10.2 million) was due to the partial write-down of the receivable owed to the subsidiary Finanziaria di Partecipazioni e Investimenti S.p.A. from ANAS S.p.A. (EUR -11.7 million) and the insurance refund received from SATAP S.p.A. for claims for 2011- 2012 (EUR +1.5 million).
The item "net amortisation/depreciation and provisions" totalled EUR 293.3 million (EUR 276.8 million in 2014). The increase in this item is mainly due to higher amortisation of non-compensated revertible assets(1) (EUR +19 million).
The item "write-down of goodwill" referred to the impairment loss on the goodwill recognised for the companies SALT S.p.A. and Autocamionale della Cisa S.p.A. This write-down, despite the positive performance of the companies, is related to the gradually approaching expiry of the related concessions.
(•) Based on the fact that the increase in tolls as of 1 January 2015 for the managed sections was equal to 1.50%, the effect on "net toll revenues" was equal to 1.48% due to (i) toll adjustments, and (ii) the exclusion of the Asti-Cuneo section from said increase.
1 In order to calculate amortisation/depreciation, reference has been made, among other things, to the so-called "take-over" values set out in the economic-financial plans which are currently being examined by the Granting Body.
The changes in "financial income" are attributable to both lower gains from the disposal of equity investments and the reduction in interest from the investment of liquidity.
The item "financial charges" - including charges for interest rate swap contracts - decreased due to the reduction in financial indebtedness.
The item "write-down of equity investments" reflects, for EUR 2.4 million, the write-down on the equity investment held in Compagnia Aerea Italiana S.p.A. The change was due to the lower write-downs as compared to those carried out in 2014.
The item "profit (loss) of companies accounted for by the equity method" included the share of profits from jointly controlled entities and associated companies. More specifically, it reflects the profit recorded by SITAF S.p.A. (EUR 9.8 million), ITINERA S.p.A. (EUR 3.3 million), ATIVA S.p.A. (EUR 2.4 million), Road Link Holding Ltd. (EUR 1.2 million), SITRASB S.p.A. (EUR 0.9 million), companies operating in the parking sectors (EUR 0.9 million), Albenga Garessio Ceva S.p.A. (EUR 0.4 million) adjusted for the inclusion of pro-rata shares of losses attributable to Autostrade Lombarde S.p.A. (EUR 7 million), Rivalta Terminal Europa S.p.A. (EUR 6.6 million), TEM S.p.A./TE
S.p.A. (EUR 6.5 million) and OMT S.p.A. (EUR 0.2 million).
With regard to the above, the share of "profit for the period" attributable to the Parent Company's Shareholders amounted to EUR 160.7 million (EUR
143.1 million in FY 2014).
GROUP EQUITY AND FINANCIAL DATA
The key items of the consolidated balance sheet as at 31 December 2015 compared to the corresponding figures from the previous year can be summarised as follows:
(amounts in thousands of EUR) | 31/12/2015 | 31/12/2014 | Changes |
Net fixed assets | 3,330,243 | 3,390,256 | (60,013) |
Equity investments and other financial assets | 645,394 | 603,222 | 42,172 |
Working capital (63,187) (76,441) 13,254
Invested capital 3,912,450 3,917,037 (4,587)
Provision for restoration, replacement and maintenance of non-compensated revertible
assets (173,594) (173,994) 400
Employee severance indemnity and other provisions (54,167) (57,022) 2,855 Invested capital less provisions for medium- and long-term risks and charges 3,684,689 3,686,021 (1,332)
Shareholders' equity and profit (loss) (including minority interests) | 2,015,184 1,940,581 74,603 | |
"Adjusted" net financial indebtedness | 1,581,031 1,644,407 (63,376) | |
Other long-term payables - Deferred income of the payable due to Central Insurance Fund | 88,474 101,033 (12,559) | |
Equity and minority interests | 3,684,689 3,686,021 (1,332) | |
*** | ||
The item net financial indebtedness breaks down as follows: | ||
(amounts in thousands of EUR) | 31/12/2015 31/12/2014 Changes | |
A) Cash and cash equivalents | 953,990 1,080,227 (126,237) | |
B) Securities held for trading | - 18,443 (18,443) | |
C) Liquidity (A) + (B) | 953,990 1,098,670 (144,680) | |
D) Financial receivables | 469,950 491,602 (21,652) | |
E) Bank short-term borrowings | (18,130) (8,014) (10,116) | |
F) Current portion of medium/long-term borrowings | (176,166) (327,352) 151,186 | |
G) Other financial liabilities | (46,264) (40,188) (6,076) | |
H) Short-term borrowings (E) + (F) + (G) | (240,560) (375,554) 134,994 | |
I) Current net cash (C) + (D) + (H) | 1,183,380 1,214,718 (31,338) | |
J) Bank long-term borrowings | (1,208,745) (1,228,168) 19,423 | |
K) Hedging derivatives | (107,018) (131,066) 24,048 | |
L) Bonds issued | (1,317,749) (1,311,279) (6,470) | |
M) Other long-term payables | (1,657) (1,907) 250 | |
N) Long-term borrowings (J) + (K) + (L) + (M) | (2,635,169) (2,672,420) 37,251 | |
O) Net financial indebtedness(*) (I) + (N) | (1,451,789) (1,457,702) 5,913 | |
P) Non-current financial receivables | 49,237 49,160 77 | |
Q) Discounted value of the payable due to ANAS-Central Insurance Fund | (178,479) (235,865) 57,386 | |
R) "Adjusted" net financial indebtedness (O) + (P) + (Q) | (1,581,031) (1,644,407) 63,376 | |
(*) Pursuant to CESR Recommendation | ||
As at 31 December 2015, the item "net financial indebtedness" totalled EUR 1,451.8 million (EUR 1,457.7 million as at 31 December 2014).
SIAS - Società Iniziative Autostradali e Servizi S.p.A. issued this content on 10 March 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 10 March 2016 13:37:12 UTC
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