PRESS RELEASE
Board of Directors of SIAS approves Separate Financial Statements
and Consolidated Financial Statements as at 31 December 2018
•Group ends 2018 with growth:
Net profit +11.2%, EBITDA +6.2%, Turnover +7%
•Final dividend of €0.535 per share proposed
Total dividend for 2018 of €0.70, worth a total of €159.3 million
•Ordinary Shareholders' Meeting called for 15 May 2019
Main consolidated earnings and financial highlights:
• | Net profit : | €264.5 million (€237.8 million in previous year) | |
• | EBITDA: | €747.6 million (€703.8 million in previous year) | |
• | Turnover: | €1,216.6 million (€1,136.7 million in previous year) | |
• | Net financial indebtedness: | €1,239.1 million (an improvement 5.3% compared to the previous year) | |
Main highlights - Motorway concessions sector: | |||
• | SIAS (Italy) | - | EBITDA motorway sector: €738 million (+6.48%1) |
- | Traffic performance: +8.55%2 ("light vehicles" +6.70%, "heavy vehicles" | ||
+14.29%) | |||
- | Increase in network managed of about 112 km for a total managed network of | ||
more than 1,400 km | |||
• | Ecorodovias (Brazil)3 | - | Net profit 393.0 million Reais |
- | Pro forma EBITDA: 1,761 million Reais (+0.7%) | ||
- | Traffic performance: +1.7%4 | ||
- | Increase in network managed of about 850 km for a total managed network | ||
around 2,650 km |
Tortona, 27 March 2019. The SIAS Board of Directors, which met today under the chairmanship of Ing. Paolo Pierantoni, has reviewed and approved the "Separate and Consolidated Financial Statements as at 31 December 2018".
1+3.18% on like-for-like basis, net of EBITDA of Società di Progetto Autovia Padana S.p.A. ("Autovia Padana"), licensee of the Piacenza-Cremona-Brescia stretch as of 1 March 2018.
2-0.23%on like-for-like basis (+2.00% heavy vehicles, -0.95% light vehicles), net of traffic for the period March-December 2018 relative to the Piacenza-Cremona-Brescia stretch, the concession for which is held by the subsidiary Autovia Padana as of 1 March 2018.
3The group operates on the Brazilian market through its jointly held subsidiary Ecorodovias Intraestrutura e Logistica SA.
4-1.4%taking into account the effects of truck drivers' strikes which affected the period from 21 May to 3 June 2018 and the exclusion from the traffic volume calculation of "suspended axles".
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ANALYSIS OF EARNINGS AND FINANCIAL HIGHLIGHTS
CONSOLIDATED GROUP EARNINGS DATA5
"Turnover" amounted to EUR 1,216.6 million (EUR 1,136.7 million in 2017), with a growth of 7% compared to the previous financial year. "Motorway sector revenue" totalled EUR 1,135.1 million (EUR 1,047.4 million in 2017) and breaks down as follows:
-"net toll revenue" of EUR 1,103.3 million, up by EUR 86 million (+8.46%) as a result of the revenue of the licensee Autovia Padana relative to the period March-December 2018 (EUR +51.2 million), the recognition from 1 January 2018 of the toll adjustments (+31.4 million) and the growth of the traffic volumes and of the "light vehicle" and "heavy vehicle" traffic/tariff mix (EUR +3.4 million);
-"rental income and other accessory revenue" of EUR 31.8 million.
"Technology sector revenue" amounted to EUR 45.6 million with growth in activities for third parties against a decrease in activities for Group companies.
"Operating costs", totalling EUR 468.9 million, increased by EUR 36 million, of which EUR 30.9 million was due to the costs of Autovia Padana for the period March-December 2018, EUR 5 million to higher costs of the other motorway companies (maintenance costs and winter services) and the remainder mainly due to the higher production from third parties carried out by the companies operating in the "technology" sector.
With regard to the above, the "gross operating margin (EBITDA)" amounted to EUR 747.6 million, increasing by EUR 43.8 million, and reflects the changes in the Group's business segments. In particular, this reflects the growth in the gross operating margin of the "motorway sector" (EUR +44.9 million), partially offset by the decline recorded in the "ancillary sectors" (EUR -1.1million). In particular, with regard to the "motorway sector", this change was due for EUR 22.9 million to the management as from 1 March 2018 of the A21 Piacenza-Cremona-Bresciastretch and for EUR 22 million to the increased margins of the remaining motorway companies.
"Non-recurringitems" - equal to EUR 8.2 million negative - are mainly attributable to charges for the period attributable to the project to reorganise and optimise procedures and streamline resources.
"Net amortisation/depreciation and provisions" totalled EUR 312.1 million (EUR 324.2 million in 2017); the change compared to the previous year is the result of the following: (i) higher net provisions in the "provision for restoration and replacement" of non-compensated revertible assets for EUR
13.2million, (ii) lower amortisation and depreciation for EUR 19.9 million6 and (iii) lower provisions for risks and charges and other impairment losses for EUR 5.4 million.
The item "financial income" totalled EUR 35.7 million, decreased by EUR 15.5 million as a result of lower capital gains on the disposal of equity investments and interest income from financial assets, partially offset by higher dividends distributed by investee companies.
The item "financial expenses" - including the expenses for interest rate swap contracts - decreased by EUR 5 million due to the process to streamline financial resources and funding sources.7 The change in "capitalised financial expenses" is mainly related to the performance of the investments made.
The item "profit of companies accounted for by the equity method" included the share of profits from jointly controlled and associated companies. The share of "profit for the period" attributable to the Group was EUR 264.5 million (EUR 237.8 million in FY 2017)8.
5In the analysis of the revenue and expenditure items for 2018, it is worth noting that as of 1 March 2018 these reflect the figures relating to the A21 Piacenza-Cremona-Brescia stretch, after the subsidiary Autovia Padana effectively took over the concession.
6In determining the depreciation and amortisation of non-compensated revertible assets, the "takeover values" in the financial economic plans approved by the Granting Body in September 2017 and the agreements signed with said with reference to the A21 stretch, were also considered.
7The SIAS convertible bond loan 2005-2017 was repaid on 30 June 2017; SIAS S.p.A. issued the SIAS bond loan 2018-2028 on 8 February 2018.
8The "share of profit/loss for the period attributed to owners of the Parent Company" in 2017 does not take into account the portion attributable to discontinued operations, equal to EUR
0.5million.
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Summary table of consolidated earnings data
(amounts in thousands of EUR) | 2018 | 2017 | Changes |
Motorway sector revenue - operating activities 1,2 | 1,135,149 | 1,047,394 | 87,755 |
Technology sector revenue | 45,641 | 44,605 | 1,036 |
Other revenue 3 | 35,778 | 44,653 | (8,875) |
Turnover | 1,216,568 | 1,136,652 | 79,916 |
Operating costs 1,2,3 | (468,981) | (432,839) | (36,142) |
Gross operating margin (EBITDA) | 747,587 | 703,813 | 43,774 |
Non-recurring items | (8,205) | (11,175) | 2,970 |
Reported gross operating margin | 739,382 | 692,638 | 46,744 |
Net amortisation/depreciation and provisions | (312,118) | (324,248) | 12,130 |
Operating income | 427,264 | 368,390 | 58,874 |
Financial income | 35,743 | 51,201 | (15,458) |
Financial expenses | (96,976) | (102,025) | 5,049 |
Capitalised financial expenses | 14,085 | 19,699 | (5,614) |
Write-down of equity investments | - | (799) | 799 |
Profit (loss) of companies accounted for by the equity method | 15,489 | 14,357 | 1,132 |
Net financial income (expense) | (31,659) | (17,567) | (14,092) |
Profit before tax | 395,605 | 350,823 | 44,782 |
Income taxes (current and deferred) | (106,227) | (89,459) | (16,768) |
Profit (loss) for the period from continued operations | 289,378 | 261,364 | 28,014 |
Profit (loss) for the period of "assets held for sale net of taxes" (Discontinued Operations) | - | 516 | (516) |
Profit (loss) for the period | 289,378 | 261,880 | 27,498 |
• Share attributed to non-controlling interests (Continued Operations) | 24,876 | 23,608 | 1,268 |
• Share attributed to owners of the Parent Company (Continued Operations) | 264,502 | 237,756 | 26,746 |
• Share attributed to non-controlling interests (Discontinued Operations) | - | 5 | (5) |
• Share attributed to owners of the Parent Company (Discontinued Operations) | - | 511 | (511) |
(1)Amounts net of the fee/additional fee payable to ANAS (EUR 83.8 million in 2018 and EUR 75.9 million in 2017).
(2)With regard to motorway companies, IFRIC12 provides for full recognition in the Income Statement of costs and revenue for provide a clearer representation in the table above, these components - amounting to EUR 148.6 million in 2018 and EUR revenue/cost items.
(3)Amounts net of cost/revenue reversals of EUR 5.6 million in 2018 (EUR 5.5 million in 2017).
"construction activities" concerning non-compensated revertible assets. In order to 190 million in 2017 - were reversed for the same amount from the corresponding
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CONSOLIDATED GROUP FINANCIAL DATA
"Adjusted net financial indebtedness" as at 31 December 2018 - showing an improvement of EUR 68.8 million - totalled EUR 1,239.1 million (EUR 1,307.9 million as at 31 December 2017). This is even more significant considering the payment to the Ministry of Infrastructures and Transport of the price of the concession for the Piacenza-Cremona-Brescia stretch and the payment to take over from the outgoing licensee of approximately EUR 301 million.
The change in 2018 in "net financial indebtedness" was mainly due to: (i) the payment of dividends (final 2017 and interim 2018) by the Parent Company (EUR 83.1 million), (ii) the payment of dividends by subsidiaries to minority shareholders (EUR 19.9 million), (iii) the execution of enhancement works on the Group's motorway infrastructure (EUR 148.6 million), (iv) the aforementioned payment to the Ministry of Infrastructures and Transport of the concession price for the Piacenza-Cremona-Brescia stretch, and the takeover payment to the outgoing licensee totalling EUR 301 million, (v) purchases of other assets (EUR 8.4 million), (vi) the purchase of minorities (EUR 11.5 million), (vii) the loan granted to the jointly held subsidiary IGLI S.p.A. (EUR 10 million), (viii) the subscription to investment funds (EUR 7.5 million), (ix) the payment of instalments falling due of the debt to ANAS- Central Insurance Fund (FCG) (EUR 11.9 million), and (x) the change in net working capital and other minor changes (EUR 3.7 million).
These outflows were offset by (i) "operating cash flow" (EUR 560.2 million), (ii) the share capital increase of Autovia Padana paid by the associated company ITINERA S.p.A. (EUR 36.6 million) and (iii) the liquidity resulting from the sale of the pro-rata portion of the equity investment held in Autovia Padana (EUR 31.3 million) and other equity investments (EUR 1.6 million).
"Net financial indebtedness" as at 31 December 2018 also includes the positive difference accrued during the year (EUR 19.4 million) for the fair value of IRS agreements (no cash item).
The change in "non-currentfinancial receivables" includes (i) receivables of EUR 117.5 million at the so-called "takeover value" for the A21 Torino- Piacenza section, the licence for which expired on 30 June 2017, (ii) EUR 17.2 million related to "investment funds" subscribed as an investment of liquidity and (iii) EUR 2.3 million that represent - as provided for in IFRIC 12 - the discounted value of the medium/long term portion of cash flows related to the so-called "minimum amount guaranteed by the Granting Body".
The reduction in the "discounted value of the payable due to ANAS - Central Insurance Fund (FCG)", equal to EUR 3.4 million, is due to the payment of the instalments falling due (EUR 11.9 million) and the charges for discounting the payable itself (EUR 8.5 million).
Financial resources available at 31 December 2018 totalled EUR 2,241 million.
Summary table of consolidated financial data
(amounts in thousands of EUR) | 31/12/2018 | 31/12/2017 | Changes | ||
A) Cash and cash equivalents | 963,044 | 441,275 | 521,769 | ||
B) Securities held for trading | - | - | - | ||
C) Liquidity (A) + (B) | - | - | - | ||
963,044 | 441,275 | 521,769 | |||
D) Financial receivables | 481,061 | 484,201 | (3,140) | ||
E) Bank short-term borrowings | (19,182) | (4,428) | (14,754) | ||
F) Current portion of medium/long-term borrowings | (322,442) | (253,504) | (68,938) | ||
G) Other financial liabilities (current) | (50,478) | (41,683) | (8,795) | ||
H) Short-term borrowings (E) + (F) + (G) | (392,102) | (299,615) | (92,487) | ||
I) Current net cash (C) + (D) + (H) | 1,052,003 | 625,861 | 426,142 | ||
J) Bank long-term borrowings | (721,015) | (860,590) | 139,575 | ||
K) Hedging derivatives | (35,730) | (55,092) | 19,362 | ||
L) Bonds issued | (1,537,183) | (994,062) | (543,121) | ||
M) Other non-current liabilities | (1,252) | (1,343) | 91 | ||
N) Long-term borrowings (J) + (K) + (L) + (M) | (2,295,180) | (1,911,087) | (384,093) | ||
O) Net financial indebtedness(*) (I) + (N) | (1,243,177) | (1,285,226) | 42,049 | ||
P) Non-current financial receivables | 136,952 | 113,595 | 23,357 | ||
Q) Discounted value of the payable due to ANAS - Central Insurance Fund | (132,830) | (136,273) | 3,443 | ||
R) "Adjusted" net financial indebtedness (O) + (P) + (Q) | (1,239,055) | (1,307,904) | 68,849 | ||
(*)Pursuant to ESMA Recommendation
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RESULTS OF THE PARENT COMPANY - SIAS S.P.A.
The items contained in the Parent Company's income statement reflect the industrial holding activity carried out by it, as well as the centralisation of the financial funding activities within SIAS S.p.A., with the subsequent transfer of funds to operating companies, by means of specific intercompany loans. More specifically, the item "income from equity investments" (amounting to EUR 221.7 million was (i) due to the dividends paid during the financial year by SATAP S.p.A. (EUR 79.1 million), SIAS Parking S.r.l. unipersonale (EUR 59.9 million), SALT S.p.A. (EUR 46.9 million), SAV S.p.A. (EUR
9.8million), Sinelec S.p.A. (EUR 8.7 million), ATIVA S.p.A. (EUR 15.8 million), Road Link Holdings Ltd (EUR 1.1 million) and Assicurazioni Generali S.p.A. (EUR 0.3 million).
"Net financial indebtedness" as at 31 December 2018 showed a balance of EUR 2,219.8 million (EUR 1,699.7 million as at 31 December 2017); this amount does not include non-current receivables for "intercompany loans" granted, as part of the financial structure at holding level, to the investee companies SALT p.A., SATAP S.p.A., SAV S.p.A., Autostrada dei Fiori S.p.A., Autostrada Asti Cuneo S.p.A., Autovia Padana, Tangenziale Esterna S.p.A.
and IGLI S.p.A. amounting to EUR 2,1839 million (EUR 1,516 million as at 31 December 2017). The main revenue and expenditure items of the Company may be summarised as follows:
(amounts in thousands of EUR) | 2018 | 2017 | Changes |
Income from equity investments | 221,715 | 110,361 | 111,354 |
Other financial income | 83,740 | 65,928 | 17,812 |
Interest and other financial expenses | (67,759) | (63,599) | (4,160) |
Financial income and expenses | 237,696 | 112,690 | 125,006 |
Value adjustments of financial assets | (31,854) | (1,615) | (30,239) |
Other operating income | 7,328 | 6,154 | 1,174 |
Other operating costs | (18,604) | (20,439) | 1,835 |
Amortisation/depreciation and provisions | (6) | (3) | (3) |
Pre-tax profit (loss) | 194,560 | 96,787 | 97,773 | |
Income taxes | (4,012) | 1,077 | (5,089) | |
Profit (loss) for the period | 190,548 | 97,864 | 92,684 | |
MOTORWAY CONCESSIONS SECTOR
Expansion of the Group's Italian motorway network - Autovia Padana
On 1 March 2018, the subsidiary Autovia Padana effectively took over the 25-year concession for the A21 Piacenza-Cremona-Brescia stretch, which extends 112 kilometres, crossing two regions - Emilia Romagna and Lombardy - and connecting the A21 Torino-Piacenzamotorway with the A4 Brescia Padova motorway.
Motorway traffic performance - Italy
With reference to the performance of the motorway concessions sector, it should be noted in particular that the overall traffic performance in 2018, compared to 2017, increased by 8.55% (-0.23% on a like-for-like basis), with reference to both the "heavy vehicles" category (+14.29%) and the "light vehicles" category (+6.70%).
The 2018 traffic figures benefitted from the takeover of the concession for the A21 Piacenza-Cremona-Brescia stretch as of 1 March 2018. On a like- for-like basis with 2017, traffic figures showed (i) a 2.00% increase in "heavy vehicles", which confirms the positive trend seen over recent years, and (ii) a 0.95% decrease in "light vehicles".
Regulatory framework - Italy
During the year, following the registration by the Court of Auditors of the interministerial decrees of approval, the additional acts became effective implementing the update of the financial plans for the five-year period 2014-2018 of the licensees Autostrada dei Fiori S.p.A. - A10 Stretch, SALT p.A. - A12 Stretch and SAV S.p.A., signed during 2018. The registration by the Court of Auditors of the documents related to the financial plans of the licensees Autostrada dei Fiori S.p.A. - A6 Stretch and SALT p.A. - A15 Stretch is still pending.
With regard to the 2019-2023 regulatory period, the financial plans of the licensees must be approved by the Ministry of Infrastructures and Transport ("MIT") - under current legislation - by 30 June 2019.
With regard to the subsidiary Autostrada Asti Cuneo S.p.A., it should be noted that on 27 April 2018 the European Commission announced that, on the basis of EU State aid rules, it had approved the plan presented by the Italian Government for the financing of the completion of the A33 Asti-Cuneomotorway stretch by SATAP S.p.A. - A4 Section ("Cross Financing") in exchange for an extension of the latter's concession for four years and recognition of a takeover value. During the first few months of 2019, discussions continued with MIT to activate cross financing according to the new indications formulated in the meantime by the Grantor, which - with substantially equivalent economic and financial terms - envisage the maintenance of the original
9Including the short term portion of financial receivables due from the subsidiary Autostrada Asti Cuneo S.p.A..
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SIAS - Società Iniziative Autostradali e Servizi S.p.A. published this content on 27 March 2019 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 27 March 2019 18:54:04 UTC