Mundys (formerly: Atlantia SpA)

Annual Report • Mar 31, 2016

Annual Report

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1. Introduction	24
Consolidated financial highlights5 Key market data for Atlantia 6
Ownership structure7
Share price performance 8
Group structure 9
The Group around the world10
Corporate bodies11
Statement to Shareholders………………….………………………………………………….……………12
2. Report on operations	1616
Group financial review 1818
Financial review for Atlantia SpA 4245
Key performance indicators by operating segment5555
Key performance indicators for the Group's principal subsidiaries 5758
Italian motorways 6060
Overseas motorways 7070
Italian airports7474
Other activities 7979
Innovation, research and development 8181
Workforce 8383
Corporate governance 8989
Sustainability 9191
Related party transactions ……100100
Significant regulatory aspects 101101
Other information110110
Events after 31 December 2015 111111
Outlook and risks or uncertainties 112112
Proposed resolutions for the Annual General Meeting of Atlantia SpA's shareholders 113113
3. Consolidated financial statements as at and for the year ended 31 December 2015 and notes.116116
4. Separate financial statements as at and for the year ended 31 December 2014 and notes	235235
5. Reports	300
6. Key indicators extracted from the financial statements of subsidiaries, associates and joint ventures, as defined by paragraphs 3 and 4 of art. 2429 of the Italian Civil Code… … 314318

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Introduction 1

2

1. Introduzione

Consolidated financial highlights

€ M	2015 ( a )	2014
Revenue	5,304	5,083
Toll revenue	3,836	3,678
Aviation revenue	565	520
Other operating income and contract revenue	903	885
Gross operating profit (EBITDA)	3,215	3,169
Adjusted gross operating profit (EBITDA) (b)	3,301	3,246
Operating profit (EBIT)	2,212	1,933
Profit/(Loss) from continuing operations	1,438	1,262
Profit for the year	975	773
Profit attributable to owners of the parent	853	740
Operating cash flow (c)	2,105	2,079
Adjusted operating cash flow (b)	2,138	2,181
Capital expenditure (d)	1,488	1,100
€ M	31 December 2015 ( a )	31 December 2014
Equity (including non-controlling interests)	8,483	8,263
Equity attributable to owners of the parent	6,800	6,519
Net debt	10,387	10,528
Adjusted net debt (b)	11,490	11,666

(a) Adjusted amounts have been presented with the aim of enabling analysts and the rating agencies t o assess the Group's The figures for 2015 reflect the accounting effects of a number of non-recurring financial transactions carried out during the year, as described in detail in the section, "Group financial review", and the notes to the consolidated financial statements.

• (b) results of operations and financial position using the basis of presentation normally adopted by them. Information on the nature of the adjustments and on differences between the reported and adjusted amounts i s provided i n the section, "Adjusted consolidated results of operations and financial position and reconciliation with reported consolidated amounts", i n the "Group financial review". Operating cash flow i s calculated as profit for the year ⁺ amortisation/depreciation +/- impairments/reversals of impairments
• (c) (d) The figure includes investment i n assets held under concession, i n property, plant and equipment and i n intangible assets, as 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 +/- net deferred tax assets/liabilities recognised in profit or loss.
• presented in the statement of changes in consolidated net debt, included in the "Group financial review".

Key market data for Atlantia

KEY MARKET DATA	2015	2014	KEY MARKET DATA	2015	2014
Issued capital (at 31 December) (€)		825,783,990 825,783,990	Dividend yield (a)	3.6%	4.1%
Number of shares		825,783,990 825,783,990	Year-end price (€)	24.50	19.33
Market capitalisation (€m) (a)	20,232	15,962	High (€)	25.58	21.31
Earnings per share (€) (b)	1.04	0.91	Low (€)	19.15	16.52
Operating cash flow per share (€)	2.56	2.55	Share price / Earnings per share (P/E) (a)	23.65	21.24
Dividend per share (€)	0.88	0.800	Share price / Cash flow per share (a)	9.6	7.6
Interim (€)	0.4	0.355	Market to book value (a)	2.4	1.9
Final (€)	0.48	0.445	Atlantia as % of FTSE Italia All Share index (a)	3.93%	2.73%
Dividend/Cash flow per share (%)	34%	31%	Atlantia as % of FTSE/Mib index (a)	4.58%	3.11%

GROUP'S CREDIT RATING	2015	2014
Standard & Poor's	BBB+ (stable outlook)	BBB+ (stable outlook)
Moody's	Baa1 (stable outlook)	Baa1 (stable outlook)
Fitch Ratings	A- (stable outlook)	A- (stable outlook)

(a) Figures based on the closing price at the end of the year.

(b) Calculated on the basis of the number of shares at the end of the year, after excluding treasury shares.

Ownership structure

(1) Source: CONSOB (as at 31 December 2015).

• (2) Includes 0.082% held directly by Governement of Singapore Investment Corporation
• (3) Includes retail investors.
• (4) Excludes treasury shares held by Atlantia SpA, equal to 0.29% of the issued capital. Source: Thomson Reuters (as of 31 December 2015).

Share price performance

Atlantia share price - 2015

(€)

Group structure (*)

• (*) The above chart shows interests in the principal Atlantia Group companies as at 31 December 2015.
• (1) The percentage shown refers to the interest in terms of the total number of shares in issue, whilst the interest in ordinary voting shares is 58.00%.
• (2) The company is 41.14% owned by Autostrade dell'Atlantico, 33.86% by Autostrade Holding do Sur and 25.00% by Autostrade Portugal.
• (3) An unconsolidated company.
• (4) This company is a direct subsidiary of Atlantia.
• (5) This company is 59.4% owned by Atlantia, 20% by Autostrade per l'Italia and 20% by Aeroporti di Roma.
• (6) This company is 60% owned by Atlantia, 20% by Autostrade per l'Italia and 20% by Aeroporti di Roma.
• (7) A subsidiary of Autostrade per l'Italia.

The Group around the world

MOTORWAY NETWORKS OPERATED UNDER CONCESSION	KM	CONCESSION
		EXPIRY
Italy	3,005
Autostrade per l'Italia	2,855	2038
Società Italiana per il Traforo del Monte Bianco	6	2050
Raccordo Autostradale Valle d'Aosta	32	2032
Tangenziale di Napoli	20	2037
Autostrade Meridionali (1)	52	2012
Autostrada Tirrenica (2)	40	2046
Brazil	1,538
Atlantia Bertin Concessões
Colinas	307	2028
Rodovia MG050	372	2032
Triangulo do Sol	442	2021
Tieté (3)	417	2039
Chile Grupo Costanera	313
Costanera Norte	43	2033
Acceso Vial Aeropuerto AMB (4)	10	2020
Litoral Central	81	2031
Nororiente (4)	22	2044
Vespucio Sur	24	2032
Los Lagos	135	2023
India	110
Pune-Solapur Expressway (3)	110	2030
Poland	61
Stalexport Autostrada Malopolska	61	2027
AIRPORTS	NO. OF	CONCESSION
	AIRPORTS	EXPIRY
Aeroporti di Roma	2	2044
OTHER ACTIVITIES	KM OF NETWORK	SECTOR OF ACTIVITY
	USING THE
	SERVICE
Telepass (Italy)	5,907	Electronic tolling systems
Electronic Transaction Consultants (USA)	994	Electronic tolling systems
		Motorway and airport infrastructure construction
Pavimental (Italy)		and maintenance
		Motorway and airport
Spea Engineering (Italy)		infrastructure engineering

(1) The process of awarding the new concession is underway.

(2) A draft addendum to the concession arrangement, to expire in 2040, is currently being negotiated with the Grantor.

services

(3) This company is consolidated using the equity method.

(4) The concession term is estimated on the basis of agreements with the Grantor.

Corporate bodies

Board of Directors in office for 2013-2015	Chairman Chief Executive Officer	Fabio Cerchiai Giovanni Castellucci
	Directors	Carla Angela Gilberto Benetton	(independent)
		Carlo Bertazzo Bernardo Bertoldi Matteo Botto Poala (1)	(independent)
		Alberto Clô	(independent)
		Gianni Coda	(independent)
		Massimo Lapucci
		Lucy P. Marcus	(independent)
		Giuliano Mari	(independent)
		Valentina Martinelli
		Monica Mondardini	(independent)
		Clemente Rebecchini
	Segretario	Andrea Grillo
Internal Control, Risk and	Chairman	Giuliano Mari	(independent)
Corporate Governance Committee	Members	Carla Angela	(independent)
		Lucy P. Marcus	(independent)
Committee of Independent	Chairman	Giuliano Mari	(independent)
Directors with responsibility	Members	Bernardo Bertoldi	(independent)
for Related Party Transactions		Monica Mondardini	(independent)
Human Resources and	Chairman	Alberto Clô	(independent)
Remuneration Committee	Members	Carlo Bertazzo
		Gianni Coda	(independent)
		Massimo Lapucci
		Monica Mondardini	(independent)
Supervisory Board ( 2)	Coordinator	Attilio Befera
	Members	Giovanni Dionisi Concetta Testa
Ethics Officer	Coordinatore	Giuseppe Langer
	Members	Antonio Sanna Enzo Spoletini
Board of Statutory Auditors	Chairman	Corrado Gatti
for three-year period 2015-2017	Auditors	Alberto De Nigro
		Lelio Fornabaio
		Silvia Olivotto
		Livia Salvini
	Alternate Auditors	Laura Castaldi
		Giuseppe Cerati
Independent Auditors for the period 2012-2020	Deloitte & Touche SpA

(1) Mr. Matteo Botto Poala was co-opted on to the Board of Directors at the Board meeting of 12 June 2014 and elected a Director by the Annual General Meeting of 24 April 2015. (2) New members of the Supervisory Board were appointed on 10 July 2015. Prior to this date, the Board's members were: Giovanni FERRARA (Coordinator), Concetta TESTA (Member) and Pietro FRATTA (Member).

Statement to shareholders

Annual results

The Group's results for 2015 are significant within the context of a moderate economic recovery in Europe and in Italy, which continues to be held back by ongoing global uncertainty.

The Group's revenue is in excess of €5 billion, with €1.5 billion invested in infrastructure during the year and EBITDA of over €3.2 billion. In terms of financial strength, the ratio of net debt to EBITDA is down to 3.3x.

Opening of the Variante di Valico

2015 was the year in which Italy witnessed the opening of the Variante di Valico, a key component of Autostrade per l'Italia's investment programme. Covering around 59 km of motorway (including 32 km of new road alongside the existing motorway), 41 new tunnels and 41 new viaducts, the Variante di Valico is one of the most important infrastructure projects to have been carried out in Europe in the last 20 years, comparable, in terms of the number of tunnels bored and overall complexity, to construction of the Channel and San Gotthard tunnels. The project has put Italy at the technological forefront, resolving one of the main bottlenecks on the country's motorway network and bringing major benefits in terms of road safety and shorter journey times.

Investment in Italy: motorways and airports The close of the year also saw the opening to traffic of a further 16 kilometres of new third lane on the A14, between Senigallia and Ancona North. Work on the Ancona North-Ancona South section continues, in order to complete the last 20 kilometres of the total 155 kilometres of widened motorway running down Italy's Adriatic coast. Thanks to the use of public consultations, a tool promoted and adopted for the first time in Italy by Autostrade per l'Italia, it was possible to complete the approval process for the Genoa Bypass in less than 100 days in 2015. Following the issue, in May, of the decree finalising the agreement between central government and the regional authority, the final design is currently being prepared.

Since 1997, major works with a value of more than €10 billion have so far been completed, out of a total of over €22 billion envisaged in the Group's concession arrangements.

2015 also saw an acceleration in investment at Aeroporti di Roma, another of the Group's major assets, with capital expenditure of €335 million (almost double the figure for 2014). The most important works carried out at Fiumicino included completion of the upgrade of Runway 3, whilst work on the piers, the new departure areas E/F and the avant-corps of Terminal 3 continued.

Motorway traffic Traffic on the Group's motorway network rose 3.0%, whilst our overseas operators recorded overall traffic growth of 1.9% in 2015, despite a slower rate of increase in Brazil due to the weakness of the local economy. Moreover, the contribution of our South American companies to the Group's operating results was hit by the overall negative impact of exchange rate movements.

Traffic at Aeroporti di Roma Aeroporti di Roma handled over 46 million passengers at Fiumicino and Ciampino in 2015, registering growth of 6.1% and setting a new record for traffic. The result is particularly significant if we take into account the fact that it was achieved despite the limitations on operating capacity at Fiumicino airport between 7 May and 18 July 2015, as a result of the fire at Terminal 3. The airport is now also able to offer a greater number of connections: the start-up of new intercontinental routes, above all those to the Far East, make the Rome Fiumicino hub, together with Paris, the European gateway to China. Atlantia has also played its part in the recapitalisation of the new Alitalia, which took to the skies for the first time on 1 January 2015 following its partnership agreement with Ethiad. The relaunch of Italy's flag-carrier is capable of driving further growth at Fiumicino, its hub airport.

Design and construction With the reorganisation of the Group's controlling interests in Pavimental and Spea Engineering (created by the merger of ADR Engineering with and into Spea – Ingegneria Europea), Atlantia has established a leading provider of infrastructure design and construction services. In this way, the Group has confirmed its unique status as a supplier of high-quality services at every stage of the infrastructure building process, from conception through to construction and maintenance.

Financing initiatives

We have ample cash reserves available to fund our investment programmes, thanks to the financing raised on international markets at highly competitive rates. We took further steps during the year in order to optimise our capital structure, with the buyback of bonds worth €1.6 billion, resulting in a tangible reduction in our cost of debt. Autostrade per l'Italia's entry into the bond markets to fund its investment programme, via the issue of its first retail bonds in May 2015, is part of the same plan.

The combination of improved traffic growth and the operating policies put in place by the Group have enabled Atlantia to boost its earnings in 2015, allowing us to raise our dividend (10% higher than in the previous year), whilst maintaining a prudent approach to financial stability.

Medium-term strategies and objectives

Atlantia is today a global player in the management of motorway and airport infrastructure. Whilst we remain firmly committed to completing the contractually agreed investment programme designed to upgrade the infrastructure operated under concession, we are also looking to exploit opportunities for growth in other areas, not only in Italy but also in fastgrowing countries. Our goal is to consolidate our leading role in the Italian economy and reinforce our ability to compete internationally with the biggest and best in the industry.

Fabio Cerchiai Giovanni Castellucci Chairman Chief Executive Officer This page intentionally left blank

2. Relazione sulla gestione

1. Introduction

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Group financial review

Introduction

The financial review contained in this section includes and analyses the reclassified consolidated income statement, the statement of comprehensive income, the statement of changes in equity and the statement of changes in net debt for the year ended 31 December 2015, in which amounts are compared with those of the previous year. The review also includes and analyses the reclassified statement of financial position as at 31 December 2015, compared with comparative amounts as at 31 December 2014, and the reconciliation of Atlantia's equity and profit for 2015 with the Atlantia Group's corresponding consolidated amounts.

The accounting standards applied during preparation of the consolidated accounts for the year ended 31 December 2015 are consistent with those adopted for the consolidated financial statements for the year ended 31 December 2014, in that the amendments to existing standards and interpretations that have come into effect since 1 January 2015 have not had a material impact on the consolidated accounts.

The scope of consolidation at 31 December 2015 differs from the scope used at 31 December 2014, due to the acquisition of control of Autostrada Tirrenica ("SAT") following the completion, in September 2015, of Autostrade per l'Italia's purchase of a 74.95% interest in this company. When added to Autostrade per l'Italia's existing 24.98% interest in the company, the Group's total interest amounts to 99.93%. In accordance with IFRS 3, the assets acquired and liabilities assumed have been recognised at their fair value at the acquisition date, whilst SAT's income and expenses for the fourth quarter of 2015 and its assets and liabilities at 31 December 2015 have been consolidated on a line-by-line basis. The results of operations for 2014 also benefitted from the contribution of TowerCo and the gain realised on this company's sale, which Atlantia completed in the first half of 2014.

In May 2015, a fire broke out in Terminal 3 at Fiumicino airport, operated by Aeroporti di Roma. This resulted in lost aviation and non-aviation revenues, safety and salvage costs relating to the affected areas, and provisions to cover the cost of reconstruction of the fire-damaged portion of the building and the potential cost to the company of meeting third-party claims. Whilst awaiting the outcome of the final assessment, the company has recognised expected insurance proceeds based on existing coverage. These proceeds are lower than the expenses and losses incurred as a result of the fire. Given the significance of the event, the effects of the fire, where material, are described in the following financial review. More details regarding the fire are provided in the notes to the consolidated financial statements as at and for the year ended 31 December 2015, to which reference should be made.

Other than the financial transactions referred to below, the Group did not enter into non-recurring transactions during 2015, not did it enter into transactions of an atypical nature with third or related parties.

The reclassified financial statements included and analysed below have not been audited and, in certain cases, contain differences with respect to the corresponding statements presented in the consolidated financial statements. These differences are described in notes to the reclassified statements.

Like-for-like changes

The term "like-for-like basis", used in the following consolidated financial review, indicates that amounts for comparative periods have been determined by eliminating:

• a) from the consolidated amounts for 2015:
  • 1) the difference between foreign currency amounts for 2015 converted at average exchange rates for the period and the matching amounts converted using average exchange rates for 2014;
  • 2) SAT's contribution for the fourth quarter of 2015;
  • 3) the overall impact, including the related taxation, recognised by Autostrade per l'Italia as income following the handover free of charge of buildings located at service areas, the higher discounts applied to service area royalties (which have increased significantly from the second half of 2014), less the matching concession fees, compared with the previous year, and the cost of settlements with certain service area operators;
  • 4) income recognised by Tangenziale di Napoli following settlement of a legal dispute arising in previous years, including after-tax interest accrued since initiation of the dispute;
  • 5) the net costs incurred by Aeroporti di Roma as a result of the fire at Fiumicino airport's Terminal 3, including: the cost of safety and salvage operations, provisions to cover the estimated cost of reconstruction of the affected areas, partially offset by the recognition of insurance proceeds payable under an existing policy, and provisions for risks made following a prudent assessment, conducted on the basis of the best information currently available, of the liabilities, other than those covered by existing insurance policies, the company is likely to be required to pay once final responsibility for the incident has been determined;
  • 6) the overall impact, including the related taxation, of the non-recurring financial transactions carried out, relating to the partial buyback of certain bonds issued by Atlantia and Atlantia's purchase of notes issued by Romulus Finance, which also includes the charges incurred following the conclusion, in July 2015, of an agreement between Aeroporti di Roma and AMBAC resulting in termination of the guarantee provided for the notes;
  • 7) the after-tax impact of the difference in the discount rates applied to the provisions accounted for among the Group's liabilities;
  • 8) the increase in tax expense linked to reassessment of the deferred taxation of Italian companies at 31 December 2015, following approval of the 2016 Stability Law, which has reduced the IRES (corporation tax) rate from 27.5% to 24% from 1 January 2017;
• b) from the consolidated amounts for 2014:
  • 1) the overall impact, including the related taxation, recognised by Autostrade per l'Italia in respect of one-off royalty payments received from service area operators whose contracts were renewed and the cost of settlements with certain operators, in addition to income recognised as a result of the handover free of charge of buildings located at service areas;
  • 2) the income and related tax expense recognised by Aeroporti di Roma, essentially following the collection of preferential claims from Alitalia in Extraordinary Administration, which had been written off in previous years;
  • 3) the after-tax impact of the difference in the discount rates applied to the provisions accounted for among the Group's liabilities;

• 4) the tax expense resulting from approval of a tax reform package by the Chilean Parliament in September 2014 that, among other things, introduced a progressive increase in corporation tax rates from 21% in 2014 to 25% from 2017 on;
• 5) TowerCo's contribution for 2014 and the gain realised on the sale of this company, both classified in "Profit/(Loss) from discontinued operations" in application of IFRS 5.

The following table shows a reconciliation of like-for-like consolidated amounts for gross operating profit (EBITDA), profit for the year, profit for the year attributable to owners of the parent and operating cash flow for 2015 and 2014 and the corresponding amounts presented in the reclassified financial statements included below.

			Profi t for the
€ M	Gross operati ng profi t (EBITDA)	Profi t for the y ear	y ear attri butabl e to owners of the parent	Operati ng cash fl ow
Reported amounts for 2015 (A)	3,215	975	853	2,105
Adj ustment for non l i k e-for-l i k e i tems i n 2015
Exchange rate movements	-28	-10	- 4	- 6
Contribution of SAT for fourth quarter of 2015	2	-	-	1
Handover free of charge of buildings at service areas, discounts on service area royalties, cost of settlements	-18	-12	-12	-19
Settlement of legal action involving Tangenziale di Napoli	4	9	9	9
Fire at Fiumicino airport's Terminal 3	-12	-20	-20	-11
Non recurring financial transactions and settlements between AdR and Ambac	- 3	-168	-166	-161
Change in discount rate applied to provisions	-	68	67	-13
Change in IRES tax rate (2016 Stability Law)	-	-42	-40	-
Sub-total (B)	-55	-175	-166	-200
Li k e-for-l i k e amounts (C)=(A)+(B)	3,270	1,150	1,019	2,305
Reported amounts for 2014 (A)	3,169	773	740	2,079
Adj ustment for non l i k e-for-l i k e i tems i n 2014
Handover free of charge of buildings at service areas, one-off payments received from sub-operators, cost of settlements	35	24	24	-11
Settlement of prior claims Of AdR towards Alitalia in extraordinary administration	11	7	7	7
Change in discount rate applied to provisions	-	-132	-132	2
Tax reform (Chilean companies)	-	-107	-56	-
Contribution of TowerCo (profit/(loss) for first quarter of 2014 and gain on sale)	-	73	73	2
Sub-total (B)	4 6	-135	-84	-
Li k e-for-l i k e amounts (C)=(A)+(B)	3,123	908	824	2,079

Consolidated results of operations

"Revenue" for 2015 amounts to €5,304 million, up €221 million (4%) on 2014 (€5,083 million). On a like-for-like basis, total revenue is up €293 million (6%).

"Toll revenue" of €3,836 million is up €158 million (4%) on 2014 (€3,678 million). On a like-forlike basis, toll revenue is up €192 million (5%), reflecting a combination of the following main factors:

• a) application of annual toll increases for 2015 by the Group's Italian operators (a rise of 1.46% for Autostrade per l'Italia from 1 January 2015), boosting toll revenue by an estimated €39 million;
• b) a 3.0% improvement in traffic on the Italian network, accounting for an estimated €90 million increase in toll revenue (including the impact of the different traffic mix);
• c) an increase in toll revenue at overseas operators (up €41 million), primarily reflecting traffic growth in Chile (up 6.7%) and Poland (up 8.6%), toll increases applied by the various operators in 2014 and 2015 in accordance with their respective concession arrangements, partially offset by a decline in traffic in Brazil (down 2.1%).

Reclassified consolidated income statement

Reclassified consolidated income statement
			INCREASE/ (DECREASE)
€ M	2015	2014	ABSOLUTE	%
Toll revenue	3,836	3,678	158	4
Aviation revenue	565	520	45	9
Contract revenue	107	69	38	55
Other operating income	796	816	-20	-2
Totale revenue (1)	5,304	5,083	221	4
Cost of materials and external services (2)	-832	-737	-95	13
Concession fees	-477	-462	-15	3
Staff costs	-866	-787	-79	10
Capitalised staff costs	86	72	14	19
Total net operating costs	-2,089	-1,914	-175	9
Gross operating profit (EBITDA) (3)	3,215	3,169	46	1
Amortisation, depreciation, impairment losses and reversals of impairment losses	-918	-867	-51	6
Provisions and other adjustments	-85	-369	284	-77
Operating profit (EBIT) (4)	2,212	1,933	279	1 4
Financial income accounted for as an increase in financial assets deriving from concession rights and government grants	63	56	7	12
Financial expenses from discounting of provisions for construction services required by contract and other provisions	-56	-116	60	-52
Other financial income/(expenses)	-792	-620	-172	28
Financial expenses capitalised on concessions right	29	18	11	61
Share of profit/(loss) of investees accounted for using the equity method	-18	-9	-9	n.s.
Profit/(Loss) before tax from continuing operations	1,438	1,262	176	1 4
Income tax (expense)/benefit	-470	-553	83	-15
Profit/(Loss) from continuing operations	968	709	259	3 7
Profit/(Loss) from discontinued operations	7	64	-57	-89
Profit for the period	975	773	202	2 6
(Profit)/Loss attributable to non-controlling interests	122	33	89	n.s.
(Profit)/Loss attributable to owners of the parent	853	740	113	1 5
	2015	2014	INCREASE/ (DECREASE)

	2015	2014	INCREASE/ (DECREASE)
Basic earnings per share attributable to the owners of the parent (€) (5)	1.04	0.91	0.13
of which: - from continuing operations	1.03	0.83	0.20
- from discontinued operations	0.01	0.08	-0.07
Diluted earnings per share attributable to the owners of the parent (€) (5)	1.04	0.91	0.13
of which: - from continuing operations	1.03	0.83	0.20
- from discontinued operations	0.01	0.08	-0.07
	2015	2014	INCREASE/ (DECREASE)
Operating cash flow (€m) (6)	2,105	2,079	26
of which: - from continuing operations	2,098	2,084	14
- from discontinued operations	7	-5	12
Operating cash flow per share (€) (5) (6)	2.56	2.55	0.01
of which: - from continuing operations	2.55	2.56	-0.01
- from discontinued operations	0.01	-0.01	0.02

(1) Revenue in the reclassified consolidated income statement differs from revenue shown in the income statement in the consolidated financial statements, as revenue from construction services, recognised on the basis of the cost of raw and consumable materials, services costs, staff costs, other operating costs and financial expenses relating to construction services, and excluding revenue for services provided by sub-operators, are presented in the reclassified statement as a reduction in the respective operating costs and financial expenses, including through the inclusion of specific items showing capitalised components.

(2) After deducting the margin recognised on construction services provided by the Group's own technical units.

(3) EBITDA is calculated by deducting all operating costs, with the exception of amortisation, depreciation, impairment losses and reversals of impairment losses, the operating change in provisions and other adjustments, from operating revenue.

(4) EBIT is calculated by deducting amortisation, depreciation, impairment losses and reversals of impairment losses, the operating change in provisions and other adjustments from EBITDA. In addition, it does not include the capitalised component of financial expenses relating to construction services, which is shown as a specific line item under financial income and expenses in the reclassified statement, whilst it is included in revenue in the income statement in the consolidated financial statements.

(5) The weighted average number of shares outstanding in 2015 differs from the corresponding number for 2014 essentially due to the sale of 9,741,513 treasury shares (equal to 1.18% of the issued capital), on 10 March 2015.

(6) A definition of "Operating cash flow" is provided in note (d) to the table headed "Consolidated financial highlights".

"Aviation revenue" of €565 million is up €45 million (9%) on 2014 (€520 million), reflecting the increases in airport fees applied from 1 March 2014 and 1 March 2015 and growth in traffic (passengers up 6.1% and movements up 1.7%), achieved despite the impact of the fire at Fiumicino airport's Terminal 3.

"Contract revenue" and "Other operating income", totalling €903 million, is up €18 million compared with 2014 (€885 million). The figure was negatively impacted by non-recurring income recognised by Aeroporti di Roma in 2014, following the collection of preferential claims from Alitalia in Extraordinary Administration (written off in previous years), the impact on Autostrade per l'Italia's service area royalties of agreements with certain operators, further discounts applied with effect from the second half of 2014, a reduction in "one-off" payments received and reduced income resulting from the handover free of charge of buildings located at service areas following expiry of the related sub-concessions. These items are partially offset by Aeroporti di Roma's recognition, in 2015, of insurance proceeds recognised on the basis of a best estimate (at the date of preparation of the Group's Annual Report) of the insurance payout due to cover the rebuilding, safety and salvage costs incurred as a result of the fire at Terminal 3 and the contingent assets recognised by Tangenziale di Napoli in 2015, following settlement of a legal dispute regarding an expropriation. On a like-for-like basis, contract revenue and other operating income is up €56 million, with this figure reflecting increased revenue at Pavimental and Autostrade Tech, due to the greater volume of work carried out for external customers, and growth at Telepass and Electronic Transaction Consultants (ETC).

"Net operating costs" of €2,089 million are up €175 million (9%) on 2014 (€1,914 million). On a like-for-like basis, net operating costs are up €146 million (8%).

The "Cost of materials and external services" amounts to €832 million, up €95 million on 2014 (€737 million). The increase primarily reflects the cost of the safety and salvage procedures carried out in the areas affected by the fire at Terminal 3 and the lower cost of settlements reached with certain service area operators, which had a greater impact in 2014. On a like-for-like basis, the cost of materials and external services is up €70 million, reflecting the following:

• a) higher maintenance costs (up €23 million), primarily linked, in the case of the motorways segment, to an increase in work on the Italian network (linked to the decision to bring forward work initially scheduled for 2016) and the Chilean and Brazilian networks and, in the airports segment, to the need to ensure a high degree of efficiency of airport infrastructure and, therefore, guarantee service quality;
• b) an increase in other costs of materials and external services (up €47 million), primarily reflecting cost increases at Pavimental, Autostrade Tech, Telepass and ETC linked to growth in activity, an increase in insurance deductibles, the corporate advertising costs incurred by Autostrade per l'Italia in relation to the issue of bonds to retail investors in June 2015 and an increase in other airport costs, mainly relating to commercial initiatives designed to boost traffic. These costs are partially offset by increased margins earned on the construction services provided by the Group's own technical units and the impact of bringing airport cleaning services in-house.

"Concession fees", totalling €477 million, are up €15 million (3%) compared with 2014 (€462 million). This broadly reflects the increase in toll revenue reported by the Italian operators and the rise in aviation revenue. On a like-for-like basis, concession fees are up €17 million.

"Staff costs", after deducting capitalised expenses, amount to €780 million (€715 million in 2014) and are up €65 million (9%).

"Gross staff costs" of €866 million are up €79 million (10%) compared with 2014 (€787 million). On a like-for-like basis, staff costs, before deducting capitalised expenses, amount to €859 million, marking an increase of €72 million (9.1%) compared with 2014. This reflects:

• a) an increase of 855 in the average workforce excluding agency staff (up 6.1%), primarily linked to the insourcing of cleaning services at Fiumicino and Ciampino airports, which began in 2014, and of routine maintenance at Triangulo do Sol and Colinas, to the staff hired in connection with implementation of the airport development plan and with improvements to passenger assistance provided by Aeroporti di Roma, and the start-up of work on new contracts by Pavimental;
• b) an increase in the average unit cost (up 3.0%), primarily due to the cost of contract renewals, management incentive plans and early retirement incentives paid by the Italian companies, partially offset by the recruitment of staff on different forms of contract at Airport Cleaning and the Brazilian companies.

"Gross operating profit" (EBITDA) of €3,215 million is up €46 million (1%) compared with 2014 (€3,169 million).

On a like-for-like basis, after stripping out the impact of the events listed in the introduction, gross operating profit is up €147 million (5%). The performance was held back by the loss of aviation and non-aviation revenue resulting from reduced capacity at Fiumicino airport as a result of fire damage to a part of Terminal 3. Given that the insurance assessors are still in the process of quantifying the loss of revenue incurred by Aeroporti di Roma (known as indirect damage), the Group has not recognised any insurance proceeds in relation to this type of damage in the consolidated financial statements for the year ended 31 December 2015.

"Operating profit" (EBIT) of €2,212 million is up €279 million (14%) compared with 2014 (€1,933 million), primarily due to the different discount rates applied to provisions at the end of each financial year (resulting in a total difference of €236 million between the two years). Provisions for the year include both those to cover the estimated cost of reconstruction of the areas affected by the fire at Terminal 3, based on expert assessments for design purposes, partially offset by the recognition of insurance proceeds payable under an existing policy, and provisions for risks made following a prudent assessment, conducted on the basis of the best information currently available, of the liabilities, other than those covered by existing insurance policies, the company is likely to be required to pay once final responsibility for the event has been determined.

On a like-for-like basis, operating profit is up €143 million (7%), reflecting, in addition to the above improvement in EBITDA, a combination of the following:

• a) the positive impact of a revised estimate of the maintenance work to be funded by provisions for the repair and replacement of motorway infrastructure and provisions for the refurbishment of airport infrastructure, totalling €40 million;
• b) a reduction in provisions for risks, essentially relating to ongoing disputes, totalling €16 million;
• c) an increase of €65 million in "Amortisation and depreciation, impairment losses and reversals of impairment losses", primarily due to a combination of the following:
  • 1) a €51 million increase in amortisation, essentially of Autostrade per l'Italia's intangible assets deriving from concession rights;

2) the reversal of an impairment loss of €12 million, recognised in 2014, on the concession rights attributable to the Polish operator, Stalexport Autostrada Malopolska.

"Financial income accounted for as an increase in financial assets deriving from concession rights and government grants", totalling €63 million, is down €7 million compared with 2014. On a like-for-like basis, this income is up €5 million, primarily due to accrued interest on financial assets deriving from concession rights and the financial assets of the Chilean operators.

"Financial expenses from discounting of provisions for construction services required by contract and other provisions" amount to €56 million and are down €60 million on 2014 (€116 million). The reduction in these expenses, computed on the basis of the value of the provisions and the discount rates used at 31 December of the year prior to the reporting period, is primarily due to a reduction in the rates used at 31 December 2014, compared with the rates used at the end of 2013. On a like-forlike basis, financial expenses from discounting of provisions for construction services required by contract and other provisions are up €3 million.

Net other financial expenses of €792 million are up €172 million on 2014 (€620 million). The change essentially reflects net financial expenses on the non-recurring financial transactions carried out in 2015, amounting to €234 million. These include:

• a) the premium paid by Atlantia (€121 million) in order to partially buy back certain bonds issued by the Company and maturing in 2016, 2017, 2019 and 2020;
• b) the premium paid by Atlantia to Romulus Finance's noteholders (€60 million) in order to buy back notes issued by this company;
• c) financial income (€25 million), accounted for as a reduction in financial expenses, deriving from the reclassification, to profit or loss, of the residual fair value accounted for as an adjustment of the carrying amount of the notes issued by Romulus Finance at the date of Atlantia's acquisition of the former Gemina group companies;
• d) reclassification to profit or loss of fair value losses on the derivatives entered into in previous years by Aeroporti di Roma in order to convert the underlyings (notes issued by Romulus Finance in sterling) into euros (€66 million), in addition to the premium paid by Aeroporti di Roma to AMBAC (€12 million) in order to terminate the guarantee for the notes issued by Romulus Finance.

In this regard, it should be noted that, in return for the net financial expenses incurred in 2015 as a result of the above non-recurring financial transactions, in present and future years the Group will benefit from an equivalent reduction in its cost of debt.

On a like-for-like basis, net financial expenses for 2015 are down €55 million, essentially due to:

• a) reductions in interest expense and in net financial expenses payable by the companies operating in Italy (totalling €86 million), reflecting a reduction in average net debt compared with 2014 and the decrease in borrowing costs linked to Atlantia's redemption of bonds with a par value of €2,094 million in June 2014 and the above-mentioned non-recurring financial transactions;
• b) a €10 million increase in interest income and net financial income received by the companies operating in Brazil and Chile, essentially due to an increase in average cash holdings and the greater average yield on the medium/long-term loan from AB Concessões to Infra Bertin Empreendimentos;
• c) a reduction in impairment losses on financial assets and investments (€8 million), which in both periods regard impairment losses on the investment in and the financial assets attributable to Compagnia Aerea Italiana (formerly Alitalia - Compagnia Aerea Italiana) and amounted to €36 million in 2015 and €44 million in 2014;
• d) the recognition of financial income by Autostrade do Brasil (€50 million) in 2014, linked to the agreements entered into with the Bertin Group in connection with the acquisition of the Brazilian operators in 2012, which also provided for an earn-out adjustment based on the effective toll revenue of Triangulo do Sol, Rodovias das Colinas and Tieté during the three-year period 2012- 2014.

"Capitalised financial expenses" of €29 million are up €11 million on 2014 (€18 million). This primarily reflects the progressive increase in accumulated payments made in relation to investment in construction services in progress for which additional economic benefits are received.

The "Share of (profit)/loss of investees accounted for using the equity method" amounts to a loss of €18 million, compared with a loss of €9 million in 2014. This is essentially attributable to the losses reported by the operators, Rodovias do Tietè and Pune-Solapur Expressway.

"Income tax expense" amounts to €470 million, down €83 million (15%) on the figure for 2014 (€553 million).

On a like-for-like basis, income tax expense is down €26 million, benefitting from the recognition of deferred taxes following the corporate restructuring conducted by the Brazilian sub-holding, AB Concessoes, and the reduction in current tax expense at the Italian companies due to the reform of direct taxation introduced in Italy by the 2015 Stability Law, only partly offset by the increase in tax expense recognised as a result of the rise in pre-tax profit.

"Profit from continuing operations" amounts to €968 million, marking an increase of €259 million in 2015 compared with 2014. On a like-for-like basis, profit from continuing operations is up €226 million (25%).

The Group reports "Profit from discontinued operations" of €7 million, marking a reduction of €57 million compared with 2014, which benefitted from the after-tax gain on the sale of TowerCo, amounting to €70 million. On a like-for-like basis, the increase of €16 million essentially reflects the different contribution of Ecomouv in the two comparative periods.

"Profit for the year", amounting to €975 million, is up €202 million (26%) on the figure for 2014 (€773 million). On a like-for-like basis, profit for the year is up €242 million (27%), after benefitting from the growth in EBITDA, the above reduction in financial expenses and the previously noted tax benefits.

"Profit for the year attributable to owners of the parent" (€853 million) is up €113 million (15%) on 2014 (€740 million), whilst "Profit attributable to non-controlling interests" amounts to €122 million, marking an increase of €89 million (€33 million in 2014), primarily due to the greater contribution from the Chilean companies, which in 2014 were hit by the negative impact of the country's tax reforms.

On a like-for-like basis, profit attributable to owners of the parent is €1,019 million, up €195 million (24%), whilst profit attributable to non-controlling interests is up €47 million (56%).

"Operating cash flow" for 2015, as defined in the section "Consolidated financial highlights", to which reference should be made, amounts to €2,105 million, up €26 million (1%) on the figure for 2014. On a like-for-like basis, operating cash flow is up €226 million (11%), reflecting the improvement in EBITDA and lower net financial expenses in 2015 (in part, as a result of the non-recurring financial transactions carried out during the period).

Consolidated statement of comprehensive income

Consolidated statement of comprehensive income
€ M	2015	2014
Profit for the year (A)	975	773
Fair value gains/(losses) on cash flow hedges	-1	-84
Gains/(losses) from translation of assets and liabilities of consolidated companies denominated in functional currencies other than the euro	-314	-29
Gains/(Losses) from translation of investments accounted for using the equity method denominated in functional currencies other than the euro	-6	2
Other comprehensive income/(loss) for the year reclassifiable to profit or loss, after related taxation (B)	-321	-111
Gains/(losses) from actuarial valuations of provisions for employee benefits	3	-13
Other comprehensive income/(loss) for the year not reclassifiable to profit or loss, after related taxation (C)	3	-13
Reclassifications of other components of comprehensive income to profit or loss for the year (D)	5 2	1 2
Total other comprehensive income/(loss) for the year, after related taxation (E=B+C+D)	-266	-112
Of which attributable to discontinued operations	6	12
Comprehensive income for the year (A+E)	709	661
Of which attributable to owners of the parent	741	638
Of which attributable to non-controlling interests	-32	23

For 2015, the "Other comprehensive loss for the year", after the related taxation, amounts to €266 million (a loss of €112 million in 2014). This essentially reflects a combination of the following:

• a) the loss on the translation of assets and liabilities denominated in functional currencies other than the euro, totalling €314 million, linked primarily to the significant fall in the value of the Brazilian real against the euro;
• b) the reclassification of losses recognised in equity to profit or loss, amounting to €52 million, including €47 million relating to fair value losses on cash flow hedges, after the related deferred taxation, following Atlantia's buyback of notes issued by Romulus Finance.

Consolidated financial position

As at 31 December 2015, "Non-current non-financial assets" of €26,761 million are down €597 million on the figure for 31 December 2014 (€27,358 million).

"Intangible assets" total €28,845 million (€25,182 million as at 31 December 2014). These assets essentially relate to intangible assets deriving from the Group's concession rights, amounting to €20,043 million (€20,364 million as at 31 December 2014), and goodwill (€4,383 million) recognised as at 31 December 2013 following the acquisition of the majority shareholding in the former Autostrade – Concessioni e Costruzioni Autostrade SpA.

The net decrease of €337 million in intangible assets is essentially due to:

• a) amortisation for the year (€866 million);
• b) the negative effect of currency translation differences recognised at the end of 2015 on the concession rights of overseas operators (totalling €423 million), essentially reflecting the significant fall in the value of the Brazilian real against the euro;
• c) investment in construction services for which additional economic benefits are received (€571 million);
• d) recognition of the intangible assets attributable to SAT (€347 million), including the gain on the company's intangible assets deriving from concession rights following the acquisition of control in 2015.

"Property, plant and equipment" of €232 million (€192 million at the end of 2014) is up €40 million, primarily due to Pavimental's purchase of industrial equipment.

"Investments", totalling €97 million are down €57 million on the figure for 31 December 2014 (€154 million), essentially reflecting the impairment loss on the investment in Compagnia Aerea Italiana, amounting to €36 million, and the line-by-line consolidation of SAT, which was accounted for at a carrying amount of €28 million as at 31 December 2014.

"Deferred tax assets" of €1,575 million are down €243 million on the figure for the end of 2014. The change is primarily due to the combined effect of a reduction in deferred tax assets (€160 million) following a change in the IRES (corporation tax) rate from 2017 introduced in Italy by the 2016 Stability Law and the release of deferred tax assets (€111 million) on the deductible portion of the goodwill recognised by Autostrade per l'Italia as a result of the contribution in 2003, partly offset by the recognition of deferred tax assets, totalling €50 million, linked to the corporate restructuring conducted by the Brazilian sub-holding, AB Concessoes, which resulted in the recognition, solely for tax purposes, of deductible goodwill by the subsidiary's Brazilian operators.

"Working capital" reports a negative balance of €1,221 million, compared with the negative balance of €1,290 million as at 31 December 2014. After stripping out the changes in the scope of consolidation resulting from the acquisition of SAT (€25 million), working capital is up €94 million.

The change primarily reflects a combination of the following:

a) a reduction in the current portion of provisions, totalling €165 million, primarily due to the current portion of provisions for the repair of Autostrade per l'Italia's infrastructure, linked to

work planned for 2016, and the current portion of provisions for the refurbishment of airport infrastructure;

• b) a reduction of €58 million in the current portion of provisions for construction services required by contract, reflecting the combined effect of uses during the year, totalling €502 million, less accrued grants for completed works, and reclassification of the current portion, totalling €451 million, linked to expected investment in construction services for which no additional benefits are received in 2016, primarily attributable to Autostrade per l'Italia;
• c) a €62 million increase in trading assets, primarily due to an increase in Aeroporti di Roma's trade receivables following an increase in turnover and a lengthening of collection periods for amounts due from the customers most affected by the fire of 7 May 2015;
• d) an increase of €37 million in other current assets, primarily reflecting the contribution from SAT and Aeroporti di Roma's recognition of a receivable based on the best estimate, at the date of preparation of this Annual Report, of an amount due from the insurance company providing cover for damage caused by fire;
• e) a reduction of €106 million in net non-financial assets related to discontinued operations, essentially linked to Ecomouv's collection of compensation due from the French government in relation to the "EcoTaxe" project, less payments to suppliers by this company;
• f) an increase in trading liabilities of €176 million, after stripping out the contribution from SAT, totalling €23 million. This is primarily attributable to Autostrade per l'Italia as a result of an increase in amounts payable to the operators of interconnecting motorways, reflecting the performance of toll revenue on the Italian network and in line with standard payment periods, and to Aeroporti di Roma, reflecting the greater volume of investment carried out during the reporting period.

Reclassified consolidated statement of financial position

Reclassified consolidated statement of financial position
€ M	31 December 2015	31 December 2014	INCREASE/ (DECREASE)
Non-current non-financial assets
Property, plant and equipment	232	192	40
Intangible assets	24,845	25,182	-337
Investments	97	154	-57
Deferred tax assets	1,575	1,818	-243
Other non-current assets	12	12	-
Total non-current non-financial assets (A)	26,761	27,358	-597
Working capital(1)
Trading assets	1,469	1,407	62
Current tax assets	44	41	3
Other current assets	245	208	37
Non-financial assets held for sale or related to discontinued operations (2)	6	242	-236
Current portion of provisions for construction services required by contract	-441	-499	58
Current provisions	-429	-594	165
Trading liabilities	-1,582	-1,406	-176
Current tax liabilities	-30	-29	-1
Other current liabilities	-497	-524	27
Non-financial liabilities related to discontinued operations (2)	-6	-136	130
Total working capital (B)	-1,221	-1,290	6 9
Gross invested capital (C=A+B)	25,540	26,068	-528
Non-current non-financial liabilities
Non-current portion of provisions for construction services required by contract	-3,369	-3,784	415
Non-current provisions	-1,501	-1,427	-74
Deferred tax liabilities	-1,701	-1,972	271
Other non-current liabilities	-99	-94	-5
Total non-current non-financial liabilities (D)	-6,670	-7,277	607
NET INVESTED CAPITAL (E=C+D)	18,870	18,791	7 9
(1) Calculated as the difference between current non-financial assets and liabilities.

(1) Calculated as the difference between current non-financial assets and liabilities.

(2) The presentation of assets and liabilities related to discontinued operations is based on their nature (financial or non-financial).

	2. Report on operations
€ M	31 December 2015	31 December 2014	INCREASE/ (DECREASE)
Equity
Equity attributable to owners of the parent	6,800	6,519	281
Equity attributable to non-controlling interests	1,683	1,744	-61
Total equity (F)	8,483	8,263	220
Net debt
Non-current net debt
Non-current financial liabilities	14,044	13,994	5 0
Bond issues	10,301	10,331	-30
Medium/long-term borrowings	3,256	3,143	113
Non-current derivative liabilities	461	515	-54
Other non-current financial liabilities	26	5	21
Non-current financial assets	-1,781	-1,756	-25
Non-current financial assets deriving from concession rights	-766	-704	-62
Non-current financial assets deriving from government grants	-256	-215	-41
Non-current term deposits	-325	-291	-34
Other non-current financial assets	-434	-546	112
Total non-current net debt (G)	12,263	12,238	2 5
Current net debt
Current financial liabilities	1,939	1,456	483
Bank overdrafts	37	1	36
Short-term borrowings	246	245	1
Current derivative liabilities	7	-	7
Current portion of medium/long-term borrowings	1,649	921	728
Other current financial liabilities	-	2	-2
Financial liabilities related to discontinued operations (2)	-	287	-287
Cash and cash equivalents	-2,997	-1,954	-1,043
Cash in hand	-2,251	-1,326	-925
Cash equivalents	-707	-579	-128
Cash and cash equivalents related to discontinued operations (2)	-39	-49	10
Current financial assets	-818	-1,212	394
Current financial assets deriving from concession rights	-435	-429	-6
Current financial assets deriving from government grants	-75	-80	5
Current term deposits	-222	-250	28
Current portion of other medium/long-term financial assets	-69	-67	-2
Other current financial assets	-17	-137	120
Financial assets held for sale or related to discontinued operations (2)	-	-249	249
Total current net debt (H)	-1,876	-1,710	-166
Total net debt (I=G+H) (3)	10,387	10,528	-141
NET DEBT AND EQUITY (L=F+I)	18,870	18,791	7 9

Situazione patrimoniale-finanziaria riclassificata consolidata

Situazione patrimoniale-finanziaria riclassificata consolidata

(2) The presentation of assets and liabilities related to discontinued operations is based on their nature (financial or non-financial).

(3) Net debt includes non-current financial assets, unlike the Group's financial position shown in the notes to the consolidated financial statements and prepared in compliance with the European Securities and Markets Authority (ESMA) Recommendation of 20 March 2013, which does not permit the deduction of non-current financial assets from debt.

"Non-current non-financial liabilities", totalling €6,670 million, are down €607 million compared with 31 December 2014 (€7,277 million). The change essentially reflects the combined effect of the following:

• a) a reduction in the non-current portion of provisions for construction services required by contract, due primarily to reclassification of the current portion of €451 million;
• b) a reduction of €271 million in deferred tax liabilities, primarily as a result of the combined effect of the reassessment of deferred tax liabilities, totalling €118 million, following the above reduction in the IRES (corporation tax) rate from 2017 and translation differences recognised at the end of 2015 as a result of the fall in the value of the Brazilian real against the euro, amounting to €125 million;
• c) an increase of €74 million in the non-current portion of other provisions, essentially following the adjustment of provisions for the repair and replacement of motorway infrastructure based on a revised estimate of the work to be carried out under maintenance programmes.

As a result, "Net invested capital", totalling €18,870 million, is down €79 million on the figure for 31 December 2014 (€18,791 million).

"Equity attributable to owners of the parent and non-controlling interests" totals €8,483 million (€8,263 million as at 31 December 2014).

"Equity attributable to owners of the parent", totalling €6,800 million, is up €281 million on the figure for 31 December 2014 (€6,519 million), primarily reflecting the following:

• a) comprehensive income for the year of €741 million;
• b) the sale in the market of treasury shares totalling €228 million, compared with a carrying amount of the shares sold of €158 million;
• c) payment of the final dividend for 2014 (€366 million) and of the interim dividend for 2015 (€329 million).

"Equity attributable to non-controlling interests" of €1,683 million is down €61 million on 31 December 2014 (€1,744 million). This is essentially due to the comprehensive loss for the year attributable to non-controlling interests, amounting to €32 million, partly linked to the significant fall in the value of the Brazilian real against the euro and dividends declared by a number of Group companies that are not wholly owned subsidiaries, totalling €29 million.

					EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT
€ m	Issued capital	Cash flow hedge reserve	Net investment hedge reserve	translation of assets currencies other and liabilities of denominated in differences on consolidated than the euro Reserve for translation companies functional	accounted for using the equity method currencies other denominated in than the euro translation of investments Reserve for functional	Other reserves and retained earnings	Treasury shares	Profit/(Loss) for year	TOTAL	ATTRIBUTABLE TO CONTROLLING INTERESTS EQUITY NON-	ATTRIBUTABLE TO OWNERS OF THE CONTROLLING TOTAL EQUITY AND TO NON- INTERESTS PARENT
Balance as at 31 December 2013	826	- 1	-36	-198	- 5	5,757	-208	347	6,482	1,728	8,210
Comprehensive income for the year	-	-74	-	-16		-13 1	-	740	638	23	661
Owner transactions and other changes Atlantia SpA's final dividend
Transfer of profit/(loss) for previous year to retained (€0.391 per share) earnings	-	-	-		-	- 30 -	-	-318 -30	-318	-	-318
Atlantia SpA's interim dividend (€0.355 per share)	-	-	-		-	-	-	-288	- -288	-	- -288
Dividends paid by other Group companies to non controlling shareholders	-	-	-		-	- - -	- -	-	-	- -8	- 8
Share-based incentive plans	- -	- -	- -		- -	5 - -	3	-	8	-	8
Changes in scope of consolidation and other minor changes and reclassifications	-	-	-		-	-3 -	-	-	- 3	1	- 2
Balance as at 31 December 2014	826	-75	-36	-214	- 4	5,776	-205	451	6,519	1,744	8,263
Comprehensive income for the year	-	47	-	-160	-3	4	-	853	741	-32	709
Owner transactions and other changes Atlantia SpA's final dividend
Transfer of profit/(loss) for previous year to retained (€0.445 per share) earnings	-	-	-		-	- 85 -	-	-366 -85	-366	-	-366
Atlantia SpA's interim dividend (€0.400 per share)	- -	- -	- -		- -	- - -	- -	-329	- -329	- -	- -329
Dividends paid by other Group companies to non controlling shareholders	-	-	-		-	- -	-	-	-	-29	-29
Sale of treasury shares	-	-	-		-	70 -	158	-	228	-	228
Share-based incentive plans	-	-	-		-	-3 -	8	-	5	-	5
Changes in scope of consolidation and other minor changes and reclassifications	-	-	-		-	2 -	-	-	2	-	2
Balance as at 31 December 2015	826	-28	-36	-374	- 7	5,934	-39	524	6,800	1,683	8,483

Statement of changes in consolidated equity

Reconciliation of Atlantia's equity and profit with the corresponding consolidated

amounts

Reconciliation of Atlantia's equity and profit with the corresponding consolidated amounts
€ M	Equity as at 31 December 2015	Profit for 2015
Amounts in financial statements of Atlantia SpA	9,708	733
Recognition in consolidated financial statements of equity and profit/(loss) for the year of investments less non-controlling interests	9,582	1,470
Elimination of carrying amount of consolidated investments	-12,691	-
Elimination of impairment losses on consolidated investments less reversals	32	-
Elimination of intercompany dividends	-	-1,049
Elimination of after-tax intercompany profits	-4,299	-46
Recognition of goodwill less non-controlling interests	4,381	-
Measurement of investments at fair value and using the equity method less dividends received	-20	-13
Other consolidation adjustments (*)	107	-242
Consolidated carrying amounts (attributable to owners of the parent)	6,800	853
Consolidated carrying amounts (attributable to non-controlling interests)	1,683	122
Carrying amounts in consolidated financial statements	8,483	975

(*) Other consolidation adjustments essentially include the different amounts, in the consolidated financial statements, for gains and/or losses on the sale of investments with respect to the corresponding amounts included in the reporting packages of consolidated companies, and the effects of remeasurement at fair value, solely for the purposes of consolidation, of previously held interests following the acquisition of control of the related companies.

The Group's net debt as at 31 December 2015 amounts to €10,387 million, marking a reduction of €141 million compared with the comparative amount (€10,528 million as at 31 December 2014). After stripping out the impact of the consolidation of SAT, which resulted in an increase in debt of €274 million, the reduction totals €415 million.

Non-current net debt, amounting to €12,263 million, is up €25 million compared with 31 December 2014 (€12,238 million) and consists of:

• a) non-current financial liabilities of €14,044 million, up €50 million essentially due to:
  • 1) an increase in bond issues of €30 million, essentially due to the following:
    • a. the issue of bonds to institutional investors by Autostrade per l'Italia, accounted for in the financial statements at a total of €1,885 million, as part of its €7 billion Euro Medium Term Note ("EMTN") Programme launched in October 2014; issues were completed in October 2015 (a par value of €650 million, paying coupon interest of 1.125% and maturing in November 2021 and a par value of €500 million, paying coupon interest of 1.875% and maturing in November 2025) and November 2015 (a par value of €750 million, paying coupon interest of 1.75% and maturing in June 2026);
    • b. the issue, by Autostrade per l'Italia, of bonds totalling €733 million to retail investors in June 2015 (a par value of €750 million, paying coupon interest of 1.625% and maturing in June 2023). In February 2015, the subsidiary entered into a number of Forward-Starting Interest Rate Swaps with banks to hedge interest rate risk associated with the launch of the bonds. The swaps have a weighted average rate of 0.54%. Fair value gains of €35 million resulted from the unwinding of these derivatives following issue of the bonds.

Approximately €10 million has been recognised in the consolidated income statement, representing the portion exceeding the nominal amount at issue, whilst the remaining gains have been recognised in consolidated comprehensive income and will be reclassified to profit or loss in line with the related interest flows. The cost of the issue, including the above hedges, thus amounts to 1.28%;

• c. Atlantia's partial buyback of bonds maturing in 2017, 2019, 2020 and 2016 (with a total par value of €1,351 million), the reclassification to short-term of the remaining bonds maturing in May 2016 (€882 million) and Atlantia's buyback of 99.87% of the assetbacked securities named "£215,000,000 5.441% per cent Class A4 Notes due 2023" issued by Romulus Finance Srl (totalling €286 million), with the resulting derecognition of the special purpose entity's corresponding financial liability, given that the entity is consolidated by the Atlantia Group,
• d. a reduction in the bonds issued by the Chilean and Brazilian companies (€184 million), primarily due to the reclassification to short-term of bonds maturing in 2016 (€232 million), and movements in the value of the related currencies against the euro (€106 million), partially offset by Rodovia MG050's issue of bonds worth €142 million (with a par value of €143 million);
• e. the impact of movements in exchange rates on Atlantia's bonds denominated in sterling and yen, reflecting a strengthening of these currencies against the euro (€54 million);
• 2) an increase in medium/long-term borrowings of €113 million, essentially due to:
  • a. the use of €200 million of the facility granted to Autostrade per l'Italia by Cassa Depositi e Prestiti, subject to a floating rate and maturing in June 2021, and the use of €50 million of the facility obtained from the EIB by the same company in 2010;
  • b. an increase (€54 million) in Autostrade per l'Italia's exposure to the Grantor in relation to laws 662/1996, 345/1997 and 135/1997;
  • c. the reclassification to short-term of portions of borrowings maturing in 2016 (€190 million);
  • d. a reduction in fair value losses on non-current derivatives, amounting to €54 million, primarily due to foreign exchange gains for the year (€74 million), connected primarily to matching losses on bonds denominated in currencies other than the euro;
  • e. an increase in fair value losses on cash flow hedges (€22 million), which include the new Forward-Starting Interest Rate Swaps entered into with banks in June 2015 and having a total notional value of €2,200 million, with varying durations of 6, 7 and 8 years. The hedges are subject to a weighted average fixed rate of 1.16% and are associated with highly likely future financial liabilities entered into through to 2017 in order to meet funding requirements.

"Current net funds" of €1,876 million as at 31 December 2015 are up €166 million on the figure for 31 December 2014 (€1,710 million) and consist of:

• a) "Current financial liabilities" of €1,939 million, up €483 million due primarily to the following:
  • 1) an increase in the current portion of medium/long-term financial liabilities (€728 million), essentially due to reclassifications to short-term (€1,304 million), after repayments during the year (€505 million) and a reduction in the current portion of the overseas companies' financial liabilities due to movements in exchange rates (€59 million), reflecting falls in the related currencies against the euro;
• 2) the further use of short-term facilities (€36 million) to meet the working capital needs of certain subsidiaries;
• 3) a reduction in financial liabilities held for sale (€287 million), following the French government's repayment, on 2 March 2015, of Ecomouv's project debt;
• b) "Cash and cash equivalents" of €2,997 million, up €1,043 million on the figure for 31 December 2014. In addition to operating cash flows during the period, the change reflects outflows relating to the partial buyback of bonds issued by Atlantia and the buyback of notes issued by Romulus Finance, partially offset by the liquidity acquired following the bonds issues carried out by Autostrade per l'Italia and Rodovia MG050, and the cash resulting from the sale of a portion of the treasury shares held by Atlantia (€228 million);
• c) "Current financial assets" of €818 million, which are down €394 million, essentially due to:
  • 1) a reduction in financial assets held for sale (€249 million), following the French government's payment of compensation for termination of the partnership agreement governing the "EcoTaxe" project;
  • 2) a reduction in other current financial assets (€119 million), essentially following the consolidation of SAT and the resulting elimination, in the consolidated financial statements, of the short-term loan to this company from Autostrade per l'Italia.

The residual weighted average term to maturity of the Group's interest bearing debt is approximately six years and six months as at 31 December 2015. 92% of the Group's debt is fixed rate. The average cost of the Group's medium/long-term borrowings in 2015 was 4.85% (reflecting the combined effect of costs of 4.2% for the companies operating in Italy, 7.5% for the Chilean companies and 14.9% for the Brazilian companies).

As at 31 December 2015, project debt attributable to specific overseas companies amounts to €1,561 million. At the same date, the Group has cash reserves of €5,688 million, consisting of:

• a) €2,997 million in cash and/or in investments maturing in the short term;
• b) €547 million in term deposits allocated primarily to part finance the execution of specific construction services and to service the debt of the Chilean companies;
• c) €2,144 million in undrawn committed lines of credit.

As at 31 December 2015, the Group has lines of credit with a weighted average residual term to maturity of approximately 8 years and six months and a weighted average residual drawdown period of approximately two years and two months.

The Group's net debt, as defined in the European Securities and Market Authority – ESMA (formerly CESR) Recommendation of 20 March 2013 (which does not permit the deduction of non-current financial assets from debt), amounts to €12,168 million as at 31 December 2015, compared with €12,284 million as at 31 December 2014.

Consolidated cash flow

"Net cash from operating activities" amounts to €2,211 million for 2015 (including €2,105 million classifiable as operating cash flow). This is an increase of €388 million on the figure for 2014 (€1,823 million), primarily reflecting the differing performance of movements in operating capital and nonfinancial assets and liabilities in the two comparative periods (amounting to an inflow of €106 million in 2015 and an outflow of €256 million in 2014). Cash flows for 2015 benefitted from the collection of compensation paid by the French government in March 2015, following early termination of the "EcoTaxe" project, whilst the figure for 2014 reflected a cash outflow due to an increase in trade receivables linked to the same project, following the signature, in June 2014, of a memorandum of understanding with the French government.

"Cash used for investment in non-financial assets" amounts to €1,644 million, up €748 million on the figure for 2014 (€897 million), primarily reflecting:

• a) a €300 million increase in investment in assets held under concession, after the related government grants and an increase in financial assets deriving from concession rights;
• b) cash of €274 million used for the acquisition of a controlling interest in SAT, completed in September 2015, including the outflow to fund the purchase of a controlling interest (€84 million) and the net debt contributed by this company (€190 million);
• c) the proceeds, realised in 2014, from the deconsolidation of TowerCo, including net debt transferred, totalling €83 million;
• d) increased investment in property, plant and equipment, totalling €39 million, primarily attributable to Pavimental.

"Net equity cash outflows" during 2015 amount to €493 million (€612 million in 2014), reflecting the proceeds (€228 million) from Atlantia's sale of treasury shares in the market, which partially offset the dividends payable to owners of the parent and non-controlling shareholders (€724 million, up €110 million on the figure for 2014).

In addition, in 2015, net debt decreased by €67 million as a result of movements not linked to operating or investing activities or to changes in equity, whilst, in 2014, there was an increase in net debt of €73 million as a result of similar movements.

The contrasting impact in the two comparative periods essentially reflects a reduction in the fair value of cash flow hedges recognised in the consolidated statement of comprehensive income in 2015, amounting to €14 million (losses of €94 million in 2014),. This primarily reflects the positive impact of the increase in interest rates (which declined in 2014), partially offset by the recognition of fair value losses on the Forward-Starting Interest Rate Swaps entered into in February and June 2015. The overall impact of the above cash flows has resulted in a reduction in net debt of €141 million in 2015, compared with a decrease of €241 million recorded in 2014.

Statement of changes in consolidated net debt

€M	2015	2014
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES
Profit for the year	975	773
Adjusted by:
Amortisation and depreciation	917	883
Operating change in provisions, after use of provisions for refurbishment of airport infrastructure	85	357
Financial expenses from discounting of provisions for construction services required by contract and other	56	116
provisions Impairment losses/(Reversal of impairment losses) on financial assets and investments accounted for at cost or	36	44
fair value Share of (profit)/loss of investees accounted for using the equity method	18	9
Impairment losses/(Reversal of impairment losses) and adjustments of non-current assets	1	-9
(Gain)/Loss on sale of non-current assets	-	-71
Net change in deferred tax (assets)/liabilities through profit or loss	21	85
Other non-cash costs (income)	-4	-108
Operating cash flow	2,105	2,079
Change in operating capital	77	-213
Other changes in non-financial assets and liabilities	29	-43
Net cash generated from/(used in) operating activities (A)	2,211	1,823
NET CASH FROM/(USED IN) INVESTMENT IN NON-FINANCIAL ASSETS
Investment in assets held under concession	-1,352	-1,004
Government grants related to assets held under concession	56	40
Increase in financial assets deriving from concession rights (related to capital expenditure)	95	63
Purchases of property, plant and equipment	-96	-57
Purchases of intangible assets	-40	-39
Purchase of investments	-18	-32
Purchases of consolidated companies, including net debt assumed	-274	-1
Proceeds from sales of property, plant and equipment, intangible assets and unconsolidated investments	3	9
Proceeds from sale of consolidated companies, including net debt transferred	-	83
Net change in other non-current assets	-18	41
Net cash from/(used in) investment in non-financial assets (B)	-1,644	-897
NET EQUITY CASH INFLOWS/(OUTFLOWS)
Dividends declared by Group companies	-724	-616
Contributions from non-controlling shareholders	-	1
Proceeds from sale of treasury shares and exercise of rights under share-based incentive plans	231	3
Net equity cash inflows/(outflows) (C)	-493	-612
Increase/(Decrease) in cash and cash equivalents during year (A+B+C)	74	314
Change in fair value and settlement of financial instruments recognised in comprehensive income	14	-94
Financial income/(expenses) accounted for as an increase in financial assets/(liabilities)	33	24
(Impairment losses)/Revaluations of financial assets	-	-14
Effect of foreign exchange rate movements on net debt and other changes	20	11
Other changes in net debt (D)	67	-73
Decrease/(Increase) in net debt for year (A+B+C+D)	141	241
Net debt at beginning of year	-10,528	-10,769
Net debt at end of year	-10,387	-10,528

(1) The statement of changes in consolidated net debt presents the impact of cash flows generated or used during the period on net debt, unlike the statement of cash flows in the consolidated financial statements, which presents the impact of cash flows on cash and cash equivalents. The statement of changes in consolidated net debt shows the following information:

- "Net cash from /(used in) operating activities" includes the item, "Operating cash flow", computed on the basis of the definition provided in the specific section containing the "Consolidated financial highlights" and shows the change in operating capital, consisting of trade-related items directly linked to the ordinary activities of the Group;

- "Net cash from/(used in) investment in non-financial assets" solely includes cash flows used in and generated from investment in and the sale of non-financial assets;

-"Net equity cash inflows/(outflows)" solely regard changes in equity with an impact on net debt;

- the item "Other changes in net debt" includes the impact of changes not included in other types of flow that have an impact on net debt.

Adjusted consolidated results of operations and financial position and reconciliation with reported consolidated amounts

The following section presents estimates of adjusted amounts for consolidated gross operating profit (EBITDA), operating cash flow and net debt. These amounts have been adjusted by stripping out, from the reported amounts, the impact of application of the "financial model", introduced by IFRIC 12, to the Group's operators who, under their concession arrangements, have an unconditional right to receive contractually guaranteed cash payments regardless of the extent to which the public uses the service. This right is accounted for in "financial assets deriving from concession rights" in the statement of financial position. It should be noted that the reported and adjusted for 2014 benefitted from the contribution from Ecomouv (the "EcoTaxe" project), which ceased operations following the French government's decision to terminate the related partnership agreement on 30 October 2014.

The adjusted amounts, which are not IFRS compliant, are presented with the aim of enabling analysts and the rating agencies to assess the Group's results of operations and financial position using the basis of presentation normally adopted by them.

In particular, the adjustments applied to the reported amounts regard:

• a) an increase in revenue to take account of the reduction (following collection) in financial assets accounted for in the statement of financial position, as a result of guaranteed minimum toll revenue;
• b) an increase in revenue, corresponding to the portion of government grants collected in relation to motorway maintenance and accounted for, in the statement of financial position, as a reduction in financial assets deriving from grants for investment in motorway infrastructure;
• c) an increase in revenue, corresponding to the accrued portion of government grants collected (in previous years) in relation to investment in motorway infrastructure and accounted for, in the statement of financial position, as a reduction in financial assets deriving from grants for investment in motorway infrastructure;
• d) the reversal of financial income deriving from the discounting to present value of financial assets deriving from concession rights (relating to guaranteed minimum revenue and the "Eco-Taxe" project) and government grants for motorway maintenance, accounted for in financial income in the income statement;
• e) the elimination of financial assets recognised, in the statement of financial position, in application of the "financial model" introduced by IFRIC 12 (takeover rights, guaranteed minimum revenue and government grants for motorway maintenance).

Reconciliation adjusted consolidated results with reported consolidated amounts

€ M	2015		2014
	EBITDA	Operating cash flow	EBITDA	Operating cash flow
Reported amounts	3,215	2,105	3,169	2,079
Increase in revenue for guaranteed minimum revenue:
Los Lagos	9	9	8	8
Costanera Norte	38	38	34	34
Litoral Central	10	10	9	9
Nororiente	13	13	12	12
Adjustment	7 0	7 0	6 3	6 3
Grants for motorway maintenance:
Los Lagos	15	15	13	13
Adjustment	1 5	1 5	1 3	1 3
Grants for investment in motorway infrastructure:
Litoral Central	1	1	1	1
Adjustment	1	1	1	1
Increase in revenue due to financial assets deriving from
concession rights attributable to Eco-Taxe project:
Ecomouv	-	-	-	89
Adjustment	-	-	-	8 9
Reversal of financial income deriving from discounting
of financial assets deriving from concession rights
(guaranteed minimums and Eco-Taxe project):
Los Lagos		-5		-5
Costanera Norte		-22		-21
Litoral Central		-7		-7
Nororiente		-12		-11
Ecomouv		-		-13
Adjustment		-46		-57
Reversal of financial income deriving from discounting
of financial assets deriving from grants
for motorway maintenance:
Los Lagos		-7		-7
Adjustment		- 7		- 7
Total adjustments	8 6	3 3	7 7	102
Adjusted amounts	3,301	2,138	3,246	2,181

	NET DEBT AS AT 31 DECEMBER 2015	NET DEBT AS AT 31 DECEMBER 2014
Reported amounts	10,387	10,528
Reversal of financial assets deriving from takeover rights:
Autostrade Meridionali	403	402
Adjustment	403	402
Reversal of financial assets deriving from guaranteed minimum revenue:
Los Lagos	61	66
Costanera Norte	285	303
Litoral Central	99	102
Nororiente	165	167
Adjustment	610	638
Reversal of financial assets deriving from grants for motorway maintenance:
Los Lagos	90	98
Adjustment	9 0	9 8
Total adjustments	1,103	1,138
Adjusted amounts	11,490	11,666

Simulation of the accounting effects of amortisation of goodwill recognised in consolidated assets

The consolidated statement of financial position as at 31 December 2015 reports goodwill of €4,383 million goodwill recognised following the acquisition, in 2003, of the majority shareholding in the former Autostrade – Concessioni e Costruzioni Autostrade SpA.

This amount, determined on the basis of Italian GAAP at that time applied by the Group, coincides with the resulting net carrying amount as at 1 January 2004, having opted, on transition to IFRS, to not retrospectively apply IFRS 3 – Business Combinations to acquisitions prior to 1 January 2004, in accordance with the exemption provided for in IFRS 1 – First-time Adoption of IFRS.

This goodwill has been allocated in full to the Autostrade per l'Italia Cash Generating Unit (CGU). From 2004, therefore, this goodwill is not systematically amortised, despite referring to activities with a determinate life, but is tested for impairment at least annually, in accordance with the requirements of IAS 36 – Impairment of Assets, in order to verify its recoverability. The impairment tests conducted until 2014 have, by estimating the related value in use, always confirmed, the recoverability of goodwill, the carrying amount of which has thus remained unchanged since 1 January 2004.

Taking into account the fact that Autostrade per l'Italia's concession term expires on 31 December 2038, for the sole purpose of showing the theoretical impact on the consolidated result for the year, and on consolidated equity as at 31 December 2015, of the simulation of straight-line amortisation of goodwill from 1 January 2015 until the end of the concession term (a total of 24 years), the following reclassified consolidated income statement and statement of financial position show amounts adjusted for amortisation of goodwill. The goodwill accounted for in consolidated assets is not relevant for tax purposes and the simulation conducted does not, therefore, result in deferred taxation.

Reclassified consolidated income statement adjusted for goodwill amortisation

Reclassified consolidated income statement adjusted for goodwill amortisation € M	2015 REPORTED AMOUNTS	GOODWILL AMORTISATION	2015 ADJUSTED AMOUNTS (POST-SIMULATION)
Toll revenue	3,836		3,836
Aviation revenue	565		565
Contract revenue	107		107
Other operating income	796		796
Total revenue	5,304		5,304
Cost of materials and external services	-832		-832
Concession fees	-477		-477
Gross staff costs	-866		-866
Capitalised staff costs	86		86
Total net operating costs	-2,089		-2,089
Gross operating profit (EBITDA)	3,215		3,215
Amortisation, depreciation, impairment losses and reversals of impairment losses	-918	-183	-1,101
Provisions and other adjustments	-85		-85
Operating profit (EBIT)	2,212	-183	2,029
Financial income accounted for as an increase in financial assets deriving from concession rights and government grants	63		63
Financial expenses from discounting of provisions for construction services required by contract and other provisions	-56		-56
Other financial income/(expenses)	-792		-792
Capitalised financial expenses	29		29
Share of profit/(loss) of investees accounted for using the equity method	-18		-18
Profit/(Loss) before tax from continuing operations	1,438	-183	1,255
Income tax (expense)/benefit	-470		-470
Profit/(Loss) from continuing operations	968	-183	785
Profit/(Loss) from discontinued operations	7		7
Profit for the year	975	-183	792
(Profit)/Loss attributable to non-controlling interests	-122		-122
(Profit)/Loss attributable to owners of the parent	853	-183	670

			2. Report on operations
Reclassified consolidated statement of financial position adjusted for goodwill amortisation
€ M	31 DECEMBER 2015 REPORTED AMOUNTS	GOODWILL AMORTISATION	2015 ADJUSTED AMOUNTS (POST-SIMULATION)
Non-current non-financial assets
Total non-current non-financial assets (A)	26,761	-183	26,578
Total working capital (B)	-1,221		-1,221
Gross invested capital (C=A+B)	25,540	-183	25,357
Non-current non-financial liabilities
Total non-current non-financial liabilities (D)	-6,670		-6,670
NET INVESTED CAPITAL (E=C+D)	18,870	-183	18,687
Equity
Equity attributable to owners of the parent	6,800	-183	6,617
Equity attributable to non-controlling interests	1,683		1,683
Total equity (F)	8,483	-183	8,300
Net debt
Non-current net debt
Non-current financial liabilities	14,044		14,044
Non-current financial assets	-1,781		-1,781
Total non-current net debt (G)	12,263		12,263
Current net debt
Current financial liabilities	1,939		1,939
Cash and cash equivalents	-2,997		-2,997
Current financial assets	-818		-818
Total current net debt (H)	-1,876		-1,876
Total net debt (I=G+H)	10,387		10,387
NET DEBT AND EQUITY (L=F+I)	18,870	-183	18,687

Reclassified consolidated statement of financial position adjusted for goodwill amortisation

Financial review for Atlantia SpA

Introduction

This financial review includes and analyses the Parent Company's reclassified income statement, statement of comprehensive income, statement of changes in equity and statement of changes in net debt for the year ended 31 December 2015, in which amounts are compared with those of the previous year. The review also includes and analyses the reclassified statement of financial position as at 31 December 2015, compared with comparative amounts as at 31 December 2014.

The accounting standards applied during preparation of the accounts for the year ended 31 December 2015 are consistent with those adopted for the financial statements for the year ended 31 December 2014, in that the amendments to existing standards and interpretations that have come into effect since 1 January 2015 have not had a material impact on the accounts.

Other than the partial buyback of certain bonds issued by the Company, described in detail in note 5.10 "Material non-recurring transactions" in the financial statements, the Company did not enter into non-recurring transactions with third or related parties during 2015. Moreover, there were no transactions of an atypical or unusual nature during the year.

The reclassified financial statements presented and analysed below have not been audited and, in certain cases, contain differences with respect to the corresponding statements presented in the financial statements. These differences are described in notes to the reclassified statements.

Results of operations

"Operating income" for 2015 amounts to €2 million, in line with the figure for 2014 and primarily consisting of cost recoveries and rental income from subsidiaries.

The "Cost of materials and external services" totals €17 million for 2015, up €3 million on the figure for 2014 (€14 million). This primarily reflects the cost of professional services, essentially relating to investment of the Company's available liquidity in the buyback of notes issued by Romulus Finance¹ , partially offset by reductions in non-deductible VAT and the cost of corporate advertising compared with 2014.

"Staff costs" of €15 million in 2015 are up €6 million on 2014 (€9 million), primarily due to the transfer of staff from Autostrade per l'Italia to Atlantia during 2014 and the greater impact of sharebased incentive plans as a result of the benefits granted to certain of the Company's directors and staff.

The "Gross operating loss" (negative EBITDA) amounts to €30 million (a loss of €21 million in 2014).

"Dividends received from investee companies", totalling €794 million, are up €124 million on the figure for 2014 (€670 million), essentially due to dividends for 2014 declared by Aeroporti di Roma (€123 million).

"Impairment losses on financial assets and investments" amount to €36 million (€44 million in 2014) and, in both comparative periods, refer to the impairment loss on the investment in Compagnia Aerea Italiana.

Net other financial income, amounting to €9 million, is substantially in line with the figure for 2014 (€8 million).

⁽1) Asset-backed securities named "£215,000,000 5.441% Class A4 Notes due 2023" issued by Romulus Finance in February 2003 as part of the securitisation of bank debt repayable by Aeroporti di Roma, a subsidiary of Atlantia.

Reclassified income statement

Reclassified income statement
			INCREASE/ (DECREASE)
€ M	2015	2014	ABSOLUTE	%
Operating income	2	2	-	-
Total revenue	2	2	-	-
Cost of materials and external services	-17	-14	-3	21
Staff costs	-15	-9	-6	67
Total net operating costs	-32	-23	- 9	3 9
Gross operating loss (EBITDA) (1)	-30	-21	- 9	4 3
Amortisation, depreciation, impairment losses and reversals of impairment losses	-1	-1	-	-
Operating loss (EBIT) (2)	-31	-22	- 9	4 1
Dividends received from investees	794	670	124	19
(Impairment losses)/Reversals of impairment losses on financial assets and investments	-36	-44	8	-18
Other financial income/(expenses)	9	8	1	13
Profit before tax from continuing operations	736	612	124	2 0
Income tax (expense)/benefit	-3	-5	2	-40
Profit from continuing operations	733	607	126	2 1
Profit/(Loss) from discontinued operations	-	79	-79	n.s.
Profit for the year	733	686	4 7	7
(1) EBITDA is calculated by deducting all operating costs, with	the exception		of amortisation, depreciation, impairment

(1) EBITDA is calculated by deducting all operating costs, with the exception of amortisation, depreciation, impairment losses on assets and reversals of impairment losses.

(2) EBIT is calculated by deducting amortisation, depreciation, impairment losses on assets and reversals of impairment

	2015	2014	INCREASE/ (DECREASE)
Basic earnings per share (€)	0.89	0.85	0.04
of which:
- from continuing operations	0.89	0.75	0.14
- from discontinued operations	-	0.10	-0.10
Diluted earnings per share (€) (3)	0.89	0.85	0.04
of which:
- from continuing operations	0.89	0.75	0.14
- from discontinued operations	-	0.10	-0.10

(3) The weighted average number of shares outstanding in 2015 differs from the corresponding number for 2014 essentially due to the sale of 9,741,513 treasury shares (equal to 1.18% of the issued capital), on 10 March 2015.

"Income tax expense" of €3 million is down €2 million on the previous year (€5 million), essentially reflecting the positive impact resulting from the reassessment of net deferred tax income and expense, amounting to €1,642 thousand, following the reduction in the IRES (corporation tax) rate from 2017, introduced by the 2016 Stability Law (Law 208/2015), and the positive effects recognised in the Company's tax return in relation to taxation for previous years.

The "Profit/(Loss) from discontinued operations", amounting to zero for 2015, reflected the after-tax gain (€74 million) on the sale of TowerCo in 2014, and the dividends for 2013, after the related taxation, declared by the investee (€5 million).

"Profit for the year" thus amounts to €733 million, up €47 million on 2014.
Statement of comprehensive income
€ M	2015	2014
Profit for the year (A)	733	686
Fair value gains/(losses) on cash flow hedges	-1	21
Other comprehensive income/(loss) for the year reclassifiable to profit or loss, after related taxation (B)	- 1	2 1
Other comprehensive income/(loss) for the year not reclassifiable to profit or loss, after related taxation (C)	-	-
Reclassifications of other components of comprehensive income to profit or loss for the year (D)	-	-
Total other comprehensive income/(loss) for the year, after related taxation (E=B+C+D)	- 1	2 1
Comprehensive income for the year (A+E)	732	707

Statement of comprehensive income

The "Total other comprehensive loss for the year, after the related taxation" amounts to €1 million, reflecting fair value losses on derivatives.

In contrast, in 2014 the Company reported fair value gains of €21 million after the related taxation, due to a reduction in interest rates as at 31 December 2014, compared with those as at 31 December 2013.

As a result, comprehensive income for 2015 amounts to €732 million (€707 million for 2014).

Financial position

"Non-current non-financial assets" of €8,845 million are substantially in line with the figure for 31 December 2014 (€8,867 million).

These assets consist almost entirely of "Investments" amounting to €8,837 million, after a reduction of €22 million compared with 31 December 2014 (€8,859 million). This primarily reflects the write-off of the carrying amount of the investment in Compagnia Aerea Italiana (€36 million), after the injection of fresh capital into the company that took place in 2015 (€9 million). The change also reflects recognition of the accrued amount for share-based incentive plans, reflecting the benefits granted to certain directors and personnel of subsidiaries (€5 million).

"Working capital" is a positive €18 million, compared with a negative €2 million as at 31 December 2014. This primarily reflects:

• a) the recognition of amounts due from certain subsidiaries (€27 million) linked to the Group VAT arrangement (governed by Ministerial Decree 11065 of 13 December 1979) adopted by the Company from 2015. In addition to amounts payable to other subsidiaries (€4 million), other current liabilities include the matching amount payable to the tax authorities, broadly offset by the payment on account of VAT in December 2015 (€23 million). Amounts due to and from the companies participating in the arrangement were settled in January 2016;
• b) a reduction in net current tax assets (€6 million), essentially linked to provisions for taxation for the year.

"Non-current non-financial liabilities" amount to €41 million, down €3 million on the figure for 31 December 2014 (€44 million). This primarily reflects a reduction in net deferred tax liabilities, linked to the positive impact (€4 million) of the above reduction in the IRES (corporation tax) rate from 2017.

As a result, "Net invested capital" of €8,822 million is up €1 million on the figure for 31 December 2014 (€8,821 million).

			2. Report on operations
Reclassified statement of financial position
€ M	31 December 2015	31 December 2014	INCREASE/ (DECREASE)
Non-current non-financial assets
Property, plant and equipment	8	8	-
Investments	8,837	8,859	-22
Total non-current non-financial assets (A)	8,845	8,867	-22
Working capital(1) Trading assets	4	4	-
Current tax assets	29	31	-2
Other current assets	29	1	28
Current provisions	-2	-2	-
Trading liabilities Current tax liabilities	-4 -18	-6 -14	2 -4
Other current liabilities	-20	-16	-4
Total working capital (B)	1 8	-2	2 0
Gross invested capital (C=A+B)	8,863	8,865	-2
Non-current non-financial liabilities
Non-current provisions	-1	-1	-
Deferred tax liabilities Other non-current liabilities	-36 -4	-42 -1	6 -3
Total non-current non-financial liabilities (D)	-41	-44	3
NET INVESTED CAPITAL (E=C+D)	8,822	8,821	1
Equity
Issued capital	826	826	-
Reserves and retained earnings Treasury shares	8,517 -39	8,420 -205	97 166
Profit for the year after payment of interim dividend	404	397	7
Total equity (F)	9,708	9,438	270
Net debt
Non-current net debt
Non-current financial liabilities	6,627	8,869	-2,242
Bond issues Non-current derivative liabilities	6,418 209	8,590 279	-2,172 -70
Non-current financial assets	-7,078	-9,004	1,926
Non-current derivative assets	-217	-245	28
Other non-current financial assets	-6,861	-8,759	1,898
Total non-current net debt (G)	-451	-135	-316
Current net debt
Current financial liabilities	1,092	251	841
Current portion of medium/long-term borrowings Other current financial liabilities	1,092 -	250 1	842 -1
Cash and cash equivalents	-417	-465	4 8
Cash	-4	-2	-2
Cash equivalents	-400	-250	-150
Intercompany current account receivables due from related parties	-13	-213	200
Current financial assets	-1,110	-268	-842
Current portion of other medium/long-term financial assets Other current financial assets	-1,102 -8	-259 -9	-843 1
Total current net debt (H)	-435	-482	4 7
Total net debt (I=G+H) (2)	-886	-617	-269
NET DEBT AND EQUITY (L=F+I)	8,822	8,821	1

(1) Calculated as the difference between current non-financial assets and liabilities.

(2) Net debt includes non-current financial assets, unlike the Company's financial position shown in the notes to the financial statements and prepared in compliance with the European Securities and Markets Authority (ESMA) Recommendation of 20 March 2013, which does not permit the deduction of non-current financial assets from debt.

"Equity" totals €9,708 million and is up €270 million compared with 31 December 2014 (€9,438 million). This reflects a combination of the following:

• a) comprehensive income for the year, amounting to €732 million;
• b) proceeds of €228 million from the sale of 9,741,513 treasury shares in the market, compared with the carrying amount of €158 million;
• c) payment of the final dividend for 2014, totalling €366 million, and of the interim dividend for 2015, totalling €329 million.

Statement of changes in equity

b) proceeds of €228 million from the sale of 9,741,513 treasury shares in the market, compared with
the carrying amount of €158 million;
c) payment of the final dividend for 2014, totalling €366 million, and of the interim dividend for
2015, totalling €329 million.
	Statement of changes in equity	Reserves		Profit for the
€ M	Issued capital	and retained earnings	Treasury shares	year after payment of interim dividend	TOTAL EQUITY
Balance as at 31 December 2013	826	8,333	-208	378	9,329
Comprehensive income for the year	-	21	-	686	707
Owner transactions and other changes
Final dividend (€0.391 per share)	-	-	-	-318	-318
Transfer of profit/(loss) for previous year to retained earnings	-	60	-	-60	-
Interim dividend (€0.355 per share)	-	-	-	-289	-289
Share-based incentive plans	-	6	3	-	9
Balance as at 31 December 2014	826	8,420	-205	397	9,438
Comprehensive income for the year	-	-1	-	733	732
Owner transactions and other changes
Final dividend (€0.445 per share)	-	-	-	-366	-366
Transfer of profit/(loss) for previous year to retained earnings	-	31	-	-31	-
Interim dividend (€0.400 per share)	-	-	-	-329	-329
Sale of treasury shares	-	70	158	-	228
Share-based incentive plans	-	-3	8	-	5
Balance as at 31 December 2015	826	8,517	-39	404	9,708

As at 31 December 2015, net funds amount to €886 million, up €269 million on the figure for 31 December 2014 (€617 million). This primarily reflects the proceeds from the sale of treasury shares (228 million), given that dividends received, other cash flows for and from operating activities and dividends paid broadly offset each other.

Net funds consist of:

• a) a non-current portion of €451 million, up €316 million compared with 31 December 2014 (€135 million), primarily due to the investment of available liquidity in the buyback of notes issued by Romulus Finance, amounting to €347 million;
• b) a current portion of €435 million, down €47 million compared with 31 December 2014 (€482 million) as a result of the cash outflow relating to the transaction described above, partially offset by the proceeds from the sale of treasury shares (€228 million) and the net balance of dividends received (€794 million) and those paid (€696 million).

The following should be noted in terms of the individual items:

• a) a reduction of €2,172 million in bond issues, primarily as a result of the partial early redemption of bonds issued by the Company (equal to €1,351 million and described in greater detail below) and maturing in 2017, 2019 and 2020, in addition to the redemption of bonds maturing in May 2016 and reclassification of the remaining bonds from this issue (€882 million);
• b) a reduction of €1,898 million in other non-current financial assets, following partial early repayment of loans granted to Autostrade per l'Italia, corresponding with the Company's early redemption of the above bonds, and reclassification of the current portion of the loan granted to the subsidiary and maturing in 2016, which also matches the maturing bonds indicated in point a) above, partially offset by the previously mentioned investment in the notes issued by Romulus Finance.

Further details regarding the partial early redemption of bonds issued by the Company and the corresponding repayment of loans granted to Autostrade per l'Italia are provided in note 5.10 to the financial statements.

The medium/long-term loans provided to the subsidiary, Autostrade per l'Italia, are granted on the same terms as the Company's borrowings in the market, plus a margin to take account of operating costs, including those incurred for hedges using derivative financial instruments, entered into to mitigate the exposure to cash flow risk of the underlying instruments as a result of movements in interest and exchange rates.

The residual weighted average term to maturity of the Company's interest bearing debt is approximately six years as at 31 December 2015. 100% of the Company's debt is fixed rate. 12% of the Company's non-current debt is denominated in currencies other than the euro (sterling and yen). Taking account of foreign exchange hedges, the percentage of foreign currency debt exposed to currency risk on translation into euros is zero.

The average cost of medium/long-term borrowings in 2015 was approximately 4.4%.

Cash flow

"Cash generated from operating activities" amounts to €751 million, up €97 million on the figure for 2014 (€654 million). This essentially reflects dividends for 2014 declared by Aeroporti di Roma (€123 million), partially offset by the cash outflow following the payment on account of VAT, recovered in January 2016. The payment of €23 million was made on behalf of the subsidiaries participating, from 2015, in the Group VAT arrangement, described above in the section "Financial position".

"Cash used for investment in non-financial assets" in 2015 amounts to €9 million and relates entirely to the injection of capital into Compagnia Aerea Italiana.

The outflow of €4 million in 2014 reflected the acquisition of investments, at a cost of €72 million, in Pavimental, Spea Ingegneria Europea and ADR Engineering (the latter merged with and into Spea Ingegneria Europea on 1 June 2015, with the merged company renamed Spea Engineering), and the injection of capital into Compagnia Aerea Italiana (€27 million), partially offset by the proceeds from the sale of the investment in TowerCo (€95 million).

"Net equity cash outflows" amount to €464 million, reflecting the payment to shareholders of the final dividend for 2014 (€366 million) and of the interim dividend for 2015 (€329 million), partially offset by the proceeds from the above sale of treasury shares.

The net outflow from changes in equity in 2014 amounted to €604 million, almost entirely reflecting the payment to shareholders of the final dividend for 2013 (€318 million) and of the interim dividend for 2014 (€289 million).

Net funds at the end of the period have also been reduced by other changes of €9 million, substantially due to fair value losses (€6 million) on financial instruments recognised in comprehensive income, after the related taxation.

Net funds increased in 2014, having benefitted from other changes of €16 million. These were essentially the result of fair value gains (€32 million) on financial instruments recognised in comprehensive income, after the related taxation, partially offset by impairment losses on convertible bonds issued by Compagnia Aerea Italiana (€14 million).

As a result of the above, net funds rose €269 million in 2015, compared with an increase of €62 million in 2014.

Statement of changes in net debt (1)

€M	2015	2014
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES
Profit for the year	733	686
Adjusted by:
Amortisation and depreciation	1	1
Impairment losses/(Reversal of impairment losses) on financial assets and investments	36	44
(Gain)/Loss on sale of non-current assets	-	-75
Net change in deferred tax (assets)/liabilities through profit or loss	-2	-
Other non-cash costs (income)	3	4
Change in operating capital	-1	-6
Other changes in non-financial assets and liabilities	-19	-
Net cash generated from/(used in) operating activities (A)	751	654
NET CASH FROM/(USED IN) INVESTMENT IN NON-FINANCIAL ASSETS
Purchase of investments	-9	-99
Proceeds from sales of property, plant and equipment, intangible assets and investments	-	95
Net cash from/(used in) investment in non-financial assets (B)	-9	-4
NET EQUITY CASH INFLOWS/(OUTFLOWS)
Dividends declared	-695	-607
Proceeds from sale of treasury shares and exercise of rights under share-based incentive plans	231	3
Net equity cash inflows/(outflows)(C)	-464	-604
Increase/(Decrease) in cash and cash equivalents during year (A+B+C)	278	46
Change in fair value and settlement of financial instruments recognised in comprehensive income	-6	32
Financial income/(expenses) accounted for as an increase in financial assets/(liabilities)	-3	-2
(Impairment losses)/Revaluations of financial assets	-	-14
Other changes in net debt (D)	-9	16
Increase in net debt for year (A+B+C+D)	269	62
Net debt at beginning of year	617	555
Net debt at end of year	886	617

(1) The statement of changes in net debt presents the impact of cash flows generated or used during the period on net debt, unlike the statement of cash flows, which presents the impact of cash flows on cash and cash equivalents. The statement of changes in netdebt shows the following information

- Net cash from /(used in) operating activities" shows the change in operating capital, consisting of trade-related items directly linked to the ordinary activities of the business;

- "Net cash from/(used in) investment in non-financial assets" solely includes cash flows used in and generated from investment in non-financial assets;

- "Net equity cash inflows/(outflows)" solely regard changes in equity with an impact on net debt;

- the item "Other changes in net debt" includes the impact of changes not included in other types of flow that have an impact on net debt.

Key performance indicators by operating segment

The Atlantia Group's operating segments are identified based on the information provided to and analysed by Atlantia's Board of Directors, which represents the Group's chief operating decision maker, taking decisions regarding the allocation of resources and assessing performance. In particular, the Board of Directors assesses the performance of the business in terms of geographical area and business segment.

Details of the composition of the Atlantia Group's operating segments are as follows:

• a) Italian motorways: this includes the Italian motorway operators (Autostrade per l'Italia, Autostrade Meridionali, Tangenziale di Napoli, Società italiana per azioni per il Traforo del Monte Bianco and Raccordo Autostradale Valle d'Aosta), whose core business consists of the management, maintenance, construction and widening of the related motorways operated under concession. This operating segment also include the motorway operator, Autostrada Tirrenica, following the acquisition of control of this company and its consolidation from September 2015. In addition, this segment also includes Telepass, the companies that provide support for the motorway business in Italy, and the Italian holding company, Autostrade dell'Atlantico, which holds investments in South America;
• b) overseas motorways: this operating segment includes the activities of the holders of motorway concessions in Brazil, Chile and Poland, and the companies that provide operational support for these operators and the related foreign-registered holding companies;
• c) Italian airports: this includes the airports business of Aeroporti di Roma, which holds the concession to operate and expand the airports of Rome Fiumicino and Rome Ciampino, and the companies responsible for supporting and developing the airports business;
• d) Atlantia and other activities: this segment includes:
  • 1) the Parent Company, Atlantia, which operates as a holding company for its subsidiaries and associates whose business is the construction and operation of motorways, airports and transport infrastructure, parking areas and intermodal systems, or who engage in activities related to the management of motorway or airport traffic;
  • 2) a number of subsidiaries that produce and operate free-flow tolling systems, traffic and transport management systems, and public information and electronic payment systems. The most important companies in this segment are Autostrade Tech and Electronic Transaction Consultants. In addition, adjusted operating cash flow for 2014 benefitted from the contribution of Ecomouv (the "EcoTaxe" project), which ceased operations following the French government's decision to terminate the related partnership agreement on 30 October 2014;
  • 3) infrastructure design, construction and maintenance, essentially carried out by Pavimental and Spea Engineering.

Key performance indicators for each of the Group's operating segments in the two comparative periods are shown below.

	ITALIAN MOTORWAYS		OVERSEAS MOTORWAYS		ITALIAN AIRPORTS		OTHER ACTIVITIES(1) ATLANTIA AND		CONSOLIDATION ADJUSTMENTS		ATLANTIA GROUP(2) TOTAL
	2015	2014	2015	2014	2015	2014	2015	2014	2015	2014	2015	2014
REPORTED AMOUNTS
External revenue	3,764	3,659	546	541	803	751	191	132	-	-	5,304	5,083
Intersegment revenue	13	19	-	-	1	-	569	452	-583	-471	-	-
Total revenue	3,777	3,678	546	541	804	751	760	584	-583	-471	5,304	5,083
EBITDA	2,314	2,261	407	412	450	466	4 4	3 0	-	-	3,215	3,169
Operating cash flow	1,471	1,417	330	320	320	337	-16	5	-	-	2,105	2,079
Capital expenditure(3)	967	774	172	156	318	151	4 1	1 8	-10	1	1,488	1,100
ADJUSTED AMOUNTS
Adjusted EBITDA	2,314	2,261	493	489	450	466	4 4	3 0	-	-	3,301	3,246
Adjusted operating cash flow	1,471	1,417	363	346	320	337	-16	8 1	-	-	2,138	2,181

1. Report on operations

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Key performance indicators for the Group's principal subsidiaries (*)

€ M		REVENUE			EBITDA
	2015	2014	Increase/(Decrease)		2015	2014	Increase/(Decrease)
			Absolute	%			Absolute	%
Italian motorways
Autostrade per l'Italia	3,405	3,332	7 3	2 %	2,114	2,076	3 8	2 %
Telepass	151	145	6	4 %	8 9	8 8	1	1 %
Società Italiana per il Traforo del Monte Bianco	5 8	5 5	3	5 %	3 8	3 5	3	9 %
Autostrade Meridionali	8 5	7 9	6	8 %	2 8	2 8	-	n/s
Tangenziale di Napoli	7 5	7 1	4	6 %	3 1	2 6	5	19%
Raccordo Autostradale Valle d'Aosta	1 9	1 8	1	6 %	7	5	2	40%
Società Autostrada Tirrenica (b)	7	-	7	n/s	2	-	2	n/s
Ad Moving	9	9	-	n/s	-	-	-	n/s
Overseas motorways
Rodovia das Colinas	125	145	-20	-14%	91	116	-25	-22%
Triangulo do Sol	114	134	-20	-15%	88	103	-15	-15%
Vespucio Sur	85	70	15	21%	68	59	9	15%
Costanera Norte	95	76	19	25%	72	57	15	26%
Gruppo Stalexport Autostrady	64	54	10	19%	51	40	11	27%
Rodovia MG050 (Nascentes das Gerais)	27	32	-5	-16%	18	21	-3	-14%
Los Lagos	25	19	6	32%	16	12	4	33%
Autopista Nororiente	5	3	2	67%	-	-	-	n/s
Litoral Central	3	2	1	50%	-1	-	-1	n/s
AMB	1	1	-	n/s	-	-	-	n/s
Italian airports
Aeroporti di Roma group(c)	801	750	51	7%	445	460	-15	-3%
Fiumicino Energia	7	8	-1	-13%	5	6	-1	-17%
Leonardo Energia	23	25	-2	-8%	-	-	-	n/s
Other activities
Pavimental	507	401	106	26%	24	18	6	33%
SPEA Engineering (d)	108	77	31	40%	29	18	11	61%
Autostrade Tech	65	52	13	25%	11	9	2	22%

• (*) Figures calculated under IFRS and, in particular, in compliance with the standards and policies adopted by Atlantia, and extracted from specific reporting packages prepared by each subsidiary for the purpose of preparing the Atlantia Group's consolidated financial statements.
• (a) Includes investment in assets held under concession, in property, plant and equipment and in other intangible assets.
• (b) This company has been consolidated by the Group from 30 September 2015.
• (c) The figures for capital expenditure do not include the portion funded by ENAC for Pier C, amounting to €18 million in 2015 and €22 million in 2014.
• (d) Spea Engineering's key performance indicators for 2015 include the contribution of ADR Engineering, following the merger completed on 21 May 2015. In 2014, ADR Engineering's contribution was, in contrast, included in the figures for the Aeroporti di Roma group.

	EBIT					CAPITAL EXPENDITURE (a)		NET DEBT
2015	2014	Increase/(Decrease)		2015	2014	Increase/(Decrease)		31 December 2015	31 December 2014	Increase/(Decrease)
		Absolute	%			Absolute	%			Absolute	%
1,650	1,411	239	17%	904	739	165	22%	10,710	10,682	2 8	n/s
7 6	7 2	4	6 %	1 6	9	7	78%	263	299	-36	-12%
2 2	1 1	1 1	n/s	2	1	1	n/s	-125	-99	-26	26%
1 8	2 0	-2	-10%	7	1 1	-4	-36%	-150	-148	-2	1 %
2 1	1 3	8	62%	1 6	1 0	6	60%	2	2 3 7	-15	-41%
-2	-11	9	-82%	7	3	4	n/s	-90	-88	-2	2 %
2	-	2	n/s	1 5	-	1 5	n/s	230	-	230	n/s
-	-	-	n/s	-	-	-	n/s		3 1	2	n/s
66	94	-28	-30%	18	20	-2	-10%	-23	1	-24	n/s
68	83	-15	-18%	15	5	10	n/s	-50	-42	-8	19%
66	54	12	22%	-	-	-	n/s	-16	37	-53	n/s
68	54	14	26%	88	50	38	76%	-217	-133	-84	63%
41	26	15	58%	5	10	-5	-50%	-70	-34	-36	n/s
6	12	-6	-50%	42	65	-23	-35%	104	90	14	16%
11	7	4	57%	-	-	-	n/s	-261	-241	-20	8%
-	-	-	n/s	-	-	-	n/s	-43	-32	-11	34%
-	-	-	n/s	-	-	-	n/s	-105	-99	-6	6%
-	-	-	n/s	-	-	-	n/s	-11	-8	-3	37%
268	271	-3	-1%	318	150	168	n/s	765	625	140	22%
3	4	-1	-25%	-	-	-	n/s		2 6	-4	-67%
-	-	-	n/s	-	-	-	n/s	-	-1	1	n/s
14	8	6	75%	26	8	18	n/s	104	85	19	22%
25	15	10	67%	3	2	1	50%	-10	3	-13	n/s
9	7	2	29%	1	1	-	n/s	-15	-10	-5	50%
5	-4	9	n/s	11	3	8	n/s	51	44	7	16%

Italian motorways

Italian motorway operations generated revenue of €3,777 million in 2015, an increase of €99 million (3%) on the previous year. On a like-for-like basis² , total revenue is up €148 million (4%).

The Group's Italian motorway operators report net toll revenue of €3,323 million for 2015, marking an increase of €157 million compared with the previous year, including the contribution from Autostrada Tirrenica. On a like-for-like basis, net toll revenue is up €151 million, primarily reflecting an increase in motorway traffic (up 3%, accounting for an increase of €90 million, including the impact of the different traffic mix) and the application of annual toll increases (up €39 million, essentially reflecting the increase of 1.46% applied by Autostrade per l'Italia from 1 January 2015).

Other operating income is down €58 million on 2014. The figure was negatively influenced by a reduction in royalties from service areas as a result of agreements with certain operators, further discounts applied to royalties with effect from the second half of 2014, a reduction in "one-off" payments received and reduced income resulting from the handover free of charge of buildings located at service areas. These items are partially offset by the contingent assets recognised by Tangenziale di Napoli in 2015, following settlement of a legal dispute regarding an expropriation. On a like-for-like basis, other operating income has not changed significantly.

Net operating costs of €1,463 million in 2015 are up €46 million on the previous year, whilst benefitting from the lower cost of settlements reached with certain service area operators (which had a greater impact in 2014). On a like-for-like basis, net operating costs are up €48 million, primarily as a result of the following:

• higher maintenance costs, above all on Autostrade per l'Italia's network, partly linked to the decision to bring forward work initially scheduled for 2016;
• an increase in operating costs, above all at Autostrade per l'Italia, linked primarily to an increase in insurance deductibles and the corporate advertising costs incurred by Autostrade per l'Italia in relation to the issue of bonds to retail investors in June 2015;
• an increase in concession fees linked to the rise in toll revenue;
• a 3.8% increase in staff costs which, before deducting capitalised expenses, substantially unchanged across the two comparative periods. This reflects a combination of the following:
  • an increase in the average unit cost (up 4.5%), primarily due to the cost of contract renewals, management incentive plans, early retirement incentives and a reduction in expenses recovered for staff on secondment, partially offset by Giove Clear's recruitment of personnel on different forms of contract with respect to the one applicable to motorway and tunnel workers;
  • a reduction of 50 (0.7%) in the average workforce, primarily due to a slowdown in recruitment (at Autostrade per l'Italia, Tangenziale di Napoli and Società Autostrade Meridionali) and the transfer of personnel from Autostrade per l'Italia to Atlantia in 2014 following the merger with

² The term "like-for-like basis", used with reference to certain performance indicators, is defined in the introduction to the "Group financial review" above.

Gemina, partly offset by recruitment for certain specific units at Autostrade per l'Italia and an increase in Giove Clear's workforce, reflected the company's expanded operations compared with 2014.

EBITDA for the Italian motorways segment in 2015 amounts to €2,314 million, up €53 million (2%) on 2014. On a like-for-like basis, EBITDA is up €100 million (4%).

Traffic

Traffic on the Group's Italian network in 2015 (measured in kilometres travelled) is up 3.0% on the previous year.

The number of kilometres travelled by vehicles with 2 axles is up 2.9%, with the figure for those with 3 or more axles up 3.9%.

Traffic on the network operated under concession in Italy during 2015

		VEHICLES*KM (MILLIONS)
OPERATOR	VEHICLES WITH 2 AXLES	VEHICLES WITH 3+ AXLES	TOTAL VEHICLES	% INC./(DEC.) ON 2014	ATVD * 2015
Autostrade per l'Italia	39,594	5,873	45,467	3.0	43,637
Autostrade Meridionali	1,550	34	1,584	4.5	84,082
Tangenziale di Napoli	841	76	917	0.7	124,431
Società Italiana per il Traforo del Monte Bianco	8	3	11	3.5	5,225
Raccordo Autostradale Valle d'Aosta	88	19	107	5.6	9,184
Total Ital i an operators	42,081	6,005	48,086	3.0	44,445
Autostrada Tirrenica **	245	23	268	3.0	18,346

* Average theoretical vehicles per day, equal to number of kilometres travelled/journey length/number of days.

** This company was consolidated from 30 September 2015.

Monthly traffic trends on the network operated under concession in Italy in 2015 (*) (millions of vehicles*km)

(*) Excluding Autostrada Tirrenica.

Toll increases

Autostrade per l'Italia applied an annual toll increase of 1.46% from 1 January 2015. This was determined, in accordance with the concession arrangement, on the basis of the following components: 0.49%, equivalent to 70% of the consumer price inflation rate in the period from 1 July 2013 to 30 June 2014; 0.89% to provide a return capital expenditure via the X tariff component; 0.08% to provide a return on investment via the K tariff component.

In the case of Raccordo Autostradale Valle d'Aosta and Tangenziale di Napoli (which, unlike Autostrade per l'Italia, apply a toll formula that takes into account the target inflation rate, a financial compensation component and a return on investment, in addition to quality), a toll increase of 1.5% has been provisionally authorised. Any difference with respect to the effective toll increase due as a result of five-yearly revision of the respective financial plans, to be included in an addendum for publication by 30 June 2015, will be recouped, as expressly agreed in a specific memorandum signed by the Grantor and the operators on 30 December 2014. The process of drawing up the above addendum is still under way.

As happened with the requested toll increase for 2014, the Grantor has not approved any toll increase for Autostrade Meridionali, in view of the fact that its concession has expired.

Based on bilateral agreements between Italy and France, Traforo del Monte Bianco has applied an increase of 2.59% from 1 January 2015, in compliance with the Intergovernmental Committee resolution. This was determined on the basis of the inflation-linked component of 0.19% (the average for Italy and France) and an increase of 2.40% resulting from the above surcharges introduced by the joint declaration of the relevant Italian and French ministries dated 3 December 2012.

Capital expenditure

Autostrade per l'Italia is in the process of implementing a programme of investment in major infrastructure projects under the original Agreement of 1997 and the IV Addendum of 2002, totalling €14.2 billion.

The purpose of these investments is to increase the capacity of the existing motorway network on the country's principal arteries, in order to improve road safety and service quality.

In addition to the above programme, Autostrade per l'Italia's new Single Concession Arrangement of 2007 also envisages further investment totalling €7 billion, via:

• extensions to projects already included in the Agreement of 1997, involving new specific network upgrades worth approximately €2 billion;
• a commitment to develop preliminary designs for the upgrade of certain sections of motorway operated under concession, totalling around 325 km, at a cost of approximately €5 billion.

AUTOSTRADE per l'ITALIA	Total km	Km opened to traffic	(€bn) Total *	(€Mln) Completed
Financial Plan 1997	233	197	6.8	5.5
IV Addendum 2002	270	213	7.4	3.4
Single Arrangement 2007 **	325	-	5.0	0.0
Other projects	-	-	2.0	0.3
TOTAL	829	410	21.2	9.2
SUBSIDIARIES	K m	Km completed	(€bn) Total *	(€bn) Completed

SUBSIDIARIES		Km completed	(€bn) Total *	(€bn) Completed
Raccordo Autostradale Valle d'Aosta	12	12	0.4	0.4
Società Autostrade Meridionali (***)	20	20	0.6	0.5
Società Autostrada Tirrenica (****)	205	4	1.4	0.2
TOTAL	237	3 6	2.4	1.1
TOTAL GROUP	1,066	446	23.6	10.3

(*) Total cost of carrying out the works, as assessed as at 31 December 2015, including the base bid price (net of bid or agreed reductions), available funds, recognised reserves and early completion bonuses.

The value of works under the 1997 Financial Plan are net of an amount included in "Other investment".

(**) The Single Arrangement signed by Autostrade per l'Italia on 12 October 2007 provides for further upgrades of the network, totalling around 325 km, at a cost of approximately €5 billion, in addition to new specific projects worth approximately €2 billion.

(***) The concession held by Autostrade Meridionali expired on 31 December 2012. At the Grantor's request, in 2015 the company continued to be responsible for day-to-day operation of the motorway whilst awaiting the transfer of the concession to the new operator (subject to inclusion of the related costs in the value of its takeover right).

(****) This company was consolidated from 30 September 2015..

The Group's other motorway have, on the other hand, completed the programmes of investment in major infrastructure projects (€1 billion) set out in their respective arrangements, whilst Autostrada Tirrenica (SAT), a company acquired by the Group in September 2015, is currently working on an extension of the section of motorway it operates between Civitavecchia and Tarquinia (€200 million already completed). Completion of the entire section from Tarquinia to Livorno (at an estimated cost of €1.2 billion) is, on the other hand, subject to fulfilment of the technical and financial conditions to be verified jointly by the grantor and Autostrada Tirrenica, and execution of an addendum to the Concession Arrangement, to include a viable financial plan.

Upgrade and modernisation of the network operating under concession in Italy

On a like-for-like basis, Autostrade per l'Italia and the Group's other Italian operators invested a total of €952 million in 2015, marking an increase of €178 million (23%) on 2014. Including Autostrada Tirrenica, capital expenditure is up €193 million (25%).

Capital expenditure

Capital expenditure
€ M	2015	2014	% inc./(dec.)
Autostrade per l'Italia -projects in Agreement of 1997	370	277	34%
Autostrade per l'Italia - projects in IV Addendum of 2002	268	216	24%
Investment in major works by other operators	1 4	1 4	0 %
Other capital expenditure and capitalised costs (staff, maintenance and other)	250	224	12%
Total investment in infrastructure operated under concession	902	731	23%
Investment in other intangible assets	1 4	1 7	-18%
Investment in property, plant and equipment	3 6	2 6	38%
Total investment in motorways in Italy	952	774	23%
Investment by Autostrada Tirrenica (*)	1 5	-
Total investment in motorways in Italy (including SAT)	967	774	25%

(*) This company was consolidated from 30 September 2015.

The volume of investment relating to works envisaged in Autostrade per l'Italia's Agreement of 1997 is €93 million up compared with 2014. The difference primarily reflects the completion of work on the Variante di Valico, opened to traffic on 23 December 2015, and the start of work on widening the A1 between Barberino and Florence North to three lanes and on completion of off carriageway works on the Florence North-Florence South section of the A1.

The increase in investment in works envisaged in Autostrade per l'Italia's IV Addendum of 2002, amounting to approximately €52 million compared with 2014, is largely due to work on Lot 4 on the A14 and on the A4-A13 interchange (where work, which had previously been halted due to the financial difficulties faced by contractors, gradually recommenced in the second half of 2014). The increase also reflects work on the fifth lane of the A8 between Milan and Lainate, which began in the second half of 2014.

Contract reserves quantified by contractors

As at 31 December 2015, Group companies have recognised contract reserves quantified by contractors amounting to approximately €1,390 million (€1,880 million as at 31 December 2014). Based on past experience, only a small percentage of the reserves will actually have to be paid to contractors and, in this case, will be accounted for as an increase in intangible assets deriving from concession rights.

Reserves have also been recognised in relation to works not connected to investment (work for external parties and maintenance), amounting to approximately €44 million. The estimated future cost is covered by provisions for disputes accounted for in the consolidated financial statements as at and for the year ended 31 December 2015.

Stage of completion of works being carried out by Autostrade per l'Italia and the other Italian motorway operators

The following tables show major works to be carried out as part of the upgrade of the network operated under concession, based on the commitments given in the respective concession arrangements. The estimated value of each project includes the overall cost (before any government grants) of the works, as assessed at the end of December 2015.

The final cost of the works is subject to change based on the effective future stage of completion of the works. In spite of the Group's determination to push ahead with design work and organisation of the projects, the above complications and problems relating to approvals may well continue to delay completion of works, with the following implications:

• the impossibility of making a reasonable estimate of the date of completion and entry into service of the various works, especially those where the related contracts have yet to be awarded;
• potential cost overruns due to disputes and eventual changes to designs.

In 2009, Autostrade per l'Italia's Board of Directors set up a body known as the "Committee responsible for the Completion of Projects", with the role of monitoring:

• the performance of infrastructure investment plans in terms of state of progress of the works, the related costs and compliance with the commitments given by the Company and its subsidiaries in the relevant concession arrangements;
• the process of selecting contractors to carry out the works;
• the organisational and procedural aspects of carrying out the works;
• the state of contract reserves;
• the status of the most important legal disputes.

The Committee met on 10 occasions in 2015.

Planned investment in the Italian network

Planned upgrades and modernisation of the network operated under concession in Italy

PROJECT		STATUS AS AT 31 DECEMBER 2015	KM COVERED BY PROJECT (KM)	VALUE OF PROJECT(a) (€M)	KM OPENED TO TRAFFIC AS AT 31 DECEMBER 2015 (KM)	STAGE OF COMPLETION AS AT 31 DECEMBER 2015(b) (€M)
	Autostrade per l'Italia: Arrangement of 1997
A8	3rd and 4th lanes Milan-Gallarate	Completed	28.7	65	28.7	65
A 1	4th lane Modena-Bologna	Completed (1)	31.6	180	31.6	146
A14	3rd lane Bologna Ring Road	Completed (2)	13.7	59	13.7	59
A 1	3rd lane Casalecchio - Sasso Marconi	Completed	4.1	83	4.1	83
A 1	Variante di Valico	Completed/in progress (3)	58.7	4,097	58.7	3,900
A1	3rd lane Barberino - Incisa	(4)	58.5	2,059	21.9	1,011
A 1	3rd lane Orte - Rome North	Completed	37.8	192	37.8	192
	Other projects	Work in progress/completed (5)		27	n.a	24
	Total projects under Arrangement of 1997		233.1	6,762	196.5	5,480
	Projects included in IV Addendum of 2002 (c)
A 1	3rd lane Fiano R. - Settebagni and Castelnuovo di Porto junction	Completed	15.9	129	15.9	124
A 4	4th lane Milan East - Bergamo	Completed	33.6	514	33.6	511
A 8	5th lane Milan - Lainate	Work in progress	4.4	211	2.2	50
A 9	3rd lane Lainate - Como Grandate	Completed	23.2	345	23.2	302
A14	3rd lane Rimini North - Porto Sant'Elpidio	Work in progress/completed (6)	154.7	2,541	134.6	2,077
	A7/A10/A12 Genoa Bypass	Final design in progress	34.8	3,256	-	65
A8	Link road for New Milan Exhibition Centre	Completed	3.8	86	3.8	86
	Other projects	(7)		342	n.a	210
	Total projects under IV Addendum of 2002		270.4	7,424	213.3	3,425
	Other Group motorway operators
A 5	RAV AO-Mont Blanc Tunnel, new Morgex- Entreves section	Completed	12.4	430	12.4	422
A 3	Autostrade Meridionali, 3rd lane Naples-Pompei East/Scafati (d)	Work in progress/completed	20.0	545	20.0	541
A12	Società Autostrada Tirrenica (e)	Work in progress	-
	Total projects of other operators		32.4	975	32.4	963
	Total investment in major works		535.9	15,161	442	9,868

(a) Total cost of carrying out the works, as assessed at 31 December 2015, including the base bid price (net of bid or agreed reductions), available funds, recognised reserves and early completion bonuses. The value of works under the Arrangement of 1997 is net of an amount included in "Other investment".

(b) Excludes capitalised costs (financial expenses and staff costs).

(c) Final approval given in 2004.

(d) Planned widening on Autostrade Meridionali's network regards 24.5 km, including 4.5 km already open to traffic over duration of Arrangement of 1972-1992.

The concession held by Autostrade Meridionali expired on 31 December 2012. As requested by the Grantor, from 1 January 2013 the company has continued to be responsible for day-to-day operation of the motorway, including completion of the investment plan, whilst awaiting the transfer of the concession to the new operator (subject to inclusion of the related costs in the value of its takeover right). (e) Il piano di investimenti in Grandi Opere di SAT prevede il potenziamento della A12 tra Rosignano e Civitavecchia

(1) Includes construction of the Modena Ring Road, a work requested by local authorities and is awaiting approval from the Services Conference.

(2) Total investment of €247 million, of which €59 million in the Major Works Plan of 1997 and €188 million in "Other investment".

(3) The Variante di Valico is open to traffic as at 31 December 2015. Work is continuing on off carriageway works, landscaping and completion of the new Rioveggio and Firenzuola junctions.

(4) Work on Lots 0 and 1 on the Barberino-Florence North section is in progress. Approximately 21.9 km of third lane is open to traffic between Florence North and Florence South; the executive design for Lot 1 of the Florence South-Incisa section has been approved, Lot 2 is awaiting approval by the Services Conference.

(5) Work on widening the bridge over the Volturno, the Rio Tufano viaduct and the Marano viaduct has been completed. Construction of the Lodi junction and re-routing of the Lodi Vecchio section has been (6) Approximately 134.6 km of third lane is open to traffic between Rimini North and Ancona North and between Ancona South and Porto Sant'Elpidio, in addition to the new junctions at Montemarciano, Porto Sant'Elpidio and Senigallia. Work is in progress on Lot 5 (Ancona North - Ancona South, 17.2 km) and Lot 4 (Senigallia - Ancona North, 18.9 km, including 16 km open to traffic).

(7) The tender procedure is underway for the Maddaloni junction; work is in progress on the Tunnel Safety Plan and on the Padua Industrial Park junction; work has been completed on the Villamarzana,

Ferentino, Guidonia and Rubicone junctions.

Investment in major works by Autostrade per l'Italia – 1997 Agreement

Of the works included in Autostrade per l'Italia's Agreement of 1997, following the opening of the section of motorway known as the Variante di Valico, as at 31 December 2015 approximately 81% of these works have been completed.

The 1997 Agreement originally envisaged expenditure of €3,556 million for the above works. The updated Financial Plan of 2002, which was included in the IV Addendum, entailed revisions to construction schedules and to the estimated total cost of the works, which was increased to €4,500 million, reflecting accumulated delays in obtaining approvals. It was, moreover, ascertained that the delays were not the fault of Autostrade per l'Italia, and that the financial benefits arising from the delays in carrying out the works were, in any case, less than the increase in costs to be borne by the Company.

The increase in costs above the levels originally set out in the Financial Plan annexed to the Agreement of 1997, are primarily the result of the above delays in the authorisation process, which have led to price increases, and of subsequently issued regulations. Cost increases have also been caused by works requested by local authorities involved in the approval and authorisation process. It is not envisaged that Autostrade per l'Italia will be able to claw back past and future cost overruns through increases in tolls.

When, moreover, construction schedules were revised and agreed during the drafting of the IV Addendum in mid-2002, the authorisation process for many sections had not yet been completed (Casalecchio-Sasso Marconi, lots 5, 6, 7, 8, 13 and 14 of the Variante di Valico, Barberino-Florence North, lots 4, 5 and 6 of the Florence North-Florence South section, Florence South-Incisa and the Bologna Ring Road) and it was not possible to estimate when this might occur.

Today, in contrast, all the authorisation procedures have been completed for the upgrade of the A1 between Bologna and Florence, with the exception of Lot 2 (7.5 km) of the Florence South-Incisa section, for which it has not been possible to finalise the agreement between central government and the regional authority, and for which modifications to the earlier design were required. The new design obtained an Environmental Impact Assessment decree in January 2015 and is currently awaiting final approval by the Services Conference.

The final cost of the works (based on contracts in progress and final and executive designs awaiting authorisation) amounts to €6.8 billion. Of this, works with a value of approximately €5.5 billion have been completed, a figure that is higher than the cost of the works estimated in 2007. Compared with the initial estimate of €3.6 billion in 1997, on the basis of which the Company was privatised, the additional expense to be borne by the operator currently stands at €3.2 billion.

Investment in major works by Autostrade per l'Italia – IV Addendum 2002

Investment envisaged in the IV Addendum is designed to upgrade the network close to a number of major conurbations and along the Adriatic coast. The authorisation process for works covered by the IV Addendum, signed by Autostrade per l'Italia in December 2002, was completed and became effective in June 2004. Work on the designs relating to the investment programme envisaged by the IV Addendum could thus only start from this date, after a delay of 21 months with respect to the original programme.

As at 31 December 2015, over 95% of the works have been authorised, approximately 50% have been contracted out and over 46% have been completed.

The most important project included in the IV Addendum, from both a technical and financial viewpoint, is the Genoa Interchange. The project aims to relieve congestion on the section of the A10 close to the city of Genoa, from the Genoa West toll station (the Port of Genoa) to the residential

Annual Report 2015 68

district of Voltri. This will involve transferring through traffic on to a new road running alongside the existing motorway, effectively doubling capacity.

To take account of accumulated delays in the approval process, the revised Financial Plan of 2013 has amended the schedule for carrying out the works and the estimated total cost, increasing it to €3.3 billion.

In 2015, the project completed the final stage of the authorisation process, with the issue, in May, of the Decree finalising the agreement between central government and the regional authority. The final design is currently being prepared.

The investments included in the IV Addendum are associated with specific toll increases linked to validation of the individual works and based on the stage of completion.

Planned investment in major works by the Group's other Italian motorway operators

As at 31 December 2015, almost all of the investments in new works by the Group's subsidiaries, Raccordo Autostradale Valle d'Aosta and Autostrade Meridionali, have been completed.

The concession held by Autostrade Meridionali expired on 31 December 2012. As requested by the Grantor, from January 2013 the company has continued to be responsible for day-to-day operation of the motorway whilst awaiting the transfer of the concession to the incoming operator and subject to inclusion of the related costs in the value of its takeover right. As at 31 December 2015, the works included in the investment programme agreed with the grantor have been completed. SAT, which has been recently acquired by the Group, is working on completion of the section of motorway linking Civitavecchia with Tarquinia (approximately 90% of the work has been completed as at 31 December 2015).

Telepass

As at 31 December 2015, 8.8 million Telepass devices are in circulation (up 327 thousand compared with 31 December 2014), whilst the number of subscribers of the Premium option stands at over 1.9 million (up 95 thousand compared with 31 December 2014).

Telepass, the company responsible for operating tolling systems and the supplier, in Italy and overseas, of other transport-related payment systems, generated revenue of €151 million in 2015, up €5 million on the figure for 2014.

Revenue primarily consists of Telepass fees of €97 million, Viacard subscription fees of €21 million and payments for Premium services of €17 million.

The company's EBITDA for 2015 is €89 million, compared with €88 million for 2014.

Overseas motorways

The Group's overseas motorway operators generated total revenue of €546 million in 2015, up €5 million (1%) on 2014, after an overall negative impact of exchange rate movements. At constant exchange rates, revenue is up 9%.

Revenue growth during the year was driven by toll increases applied by operators in accordance with the terms of their concession arrangements, and by increases in traffic (measured in terms of kilometres travelled) comparerd with 2014. Traffic growth was particularly evident in Chile (6.7%) and Poland (8.6%), whilst traffic declined in Brazil³ (a decline of 2.1%) as a result of the continuing weakness of the country's economy which, from the second half of 2014, has led to a reduction in heavy vehicles.

EBITDA for the overseas companies, amounting to €407 million in 2015, is up 1% on 2014. At constant exchange rates, EBITDA is up 6%.

Breakdown of reported EBITDA for overseas motorway operators (by geographical area)

( ³) If the 50% interest in Rodovias do Tieté is included, the decline in traffic in Brazil is 2.2%.

Chile

The Chilean operators' revenue for 2015 amounts to a total of €214 million, up 25% on 2014 (€171 million). At constant exchange rates⁴ , revenue is up 20%. EBITDA of €155 million, marking an increase of approximately €27 million (21%) on 2014. At constant exchange rates, EBITDA is up 16%.

Key performance indicators

Key performance indicators
€ m	Revenue		EBITDA			usted revenue (*) Adj			usted EBITDA (*) Adj
	2015	2014 % i	nc./(dec.)	2015	2014 % i	nc./(dec.)	2015	2014 % i	nc./(dec.)	2015	2014 % i	nc./(dec.)
Grupo Costanera
Costanera Norte	9 5	7 6	25%	7 2	5 7	26%	133	109	22%	110	9 0	22%
Nororiente	5	3	67%	0	0	n/s	1 8	1 5	20%	1 3	1 2	8 %
Vespucio Sur	8 5	7 0	21%	6 8	5 9	15%	8 5	7 0	21%	6 8	5 9	15%
Litoral Central	3	2	50%	-1	0	n/s	1 4	1 2	17%	1 2	9	33%
AMB	1	1	n/s	0	0	n/s	1	1	n/s	0	0	n/s
Los Lagos	2 5	1 9	32%	1 6	1 2	33%	4 8	4 0	20%	3 9	3 3	18%
Total	214	171	25%	155	128	21%	299	247	21%	242	203	19%

(*) Information on the nature of the adjustments made and differences between reported and adjusted amounts is provided in the specific section of the "Group financial review".

Traffic on the motorways operated by the Group's Chilean operators, measured in terms of kilometres travelled, rose by a total of 6.7% in 2015. Traffi c (mi l l i ons of k m travel l ed) Traffi c (thousands of j ourney s)

	2015	2014 % i	nc./(dec.)	2015	2014 % i	nc./(dec.)
Grupo Costanera
Costanera Norte (*)	1,076	1,038	3.6%	255,788	248,021	3.1%
Nororiente	7 9	7 3	8.3%	6,639	6,122	8.5%
Vespucio Sur	898	849	5.7%	292,678	277,706	5.4%
Litoral Central	111	9 9	12.3%	4,493	3,990	12.6%
AMB	2 3	2 2	2.6%	9,857	9,611	2.6%
Los Lagos	673	597	12.6%	17,385	16,033	8.4%
Total	2,859	2,679	6.7%	586,841	561,483	4.5%

(*) Excludes new tollgates installed in 2015.

In addition to the above traffic growth, toll revenue recorded by Costanera Norte in 2015 benefitted from the reconfiguration of tollgates in the first quarter of 2014 and in January 2015, carried out as part of the Santiago Centro Oriente upgrade programme. The effect of the new configuration, which in a number of cases enables the company to bill certain types of traffic that previously did not pay, has resulted in a 7.5% increase in traffic.

From January 2015, the operators controlled by Grupo Costanera applied the following annual toll increases⁵ , calculated under the terms of the related concession arrangements:

^{( 5}) The toll increases applied to road users may also be influenced by the rounding off of tolls and, in the case of Nororiente, by the distribution of the increase between the two barriers.

⁽⁴⁾ The results of the Group's Chilean companies for 2015 expressed in euros have benefitted from a strengthening of the Chilean peso, with the exchange rate moving from 756.9 Chilean pesos per euro (the average rate for 2014) to an average of 726.4 Chilean pesos for 2015 (an increase in value of 4%).

• 9.4% for Costanera Norte, Vespucio Sur and Nororiente, reflecting a combination of the increase linked to inflation in 2014 (up 5.7%) and a further increase of 3.5%;
• 7.3% for AMB, reflecting a combination of the increase linked to inflation in 2014 (up 5.7%) and a further increase of 1.5%;
• 5.7% for Litoral Central, linked to inflation in 2014.

From January 2015, the tolls applied by Los Lagos rose 9.0%, reflecting a combination of the increase linked to inflation in 2014 (up 5.7%) and a further increase in the form of a bonus relating to safety improvements in 2015 (up 4.0%), less the bonus for safety improvements awarded in 2014, equal to 0.85%.

Capital expenditure amounted to a total of €88 million in 2015, with around 52% of the works to be carried out as part of the Santiago Centro Oriente upgrade programme, amounting to total investment of approximately €250bn Chilean pesos (equal to around €338 million⁶ ) in the section operated by Costanera Norte, having been completed

Brazil

The Brazilian operators generated total revenue of €266 million in 2015, down 14% on 2014 (€311 million). At constant exchange rates⁷ , revenue is up 1.3%. The Brazilian operators consolidated by the Group recorded a 2.1% decline in traffic, measured in terms of kilometres travelled, in 2015. Toll revenue reflects the annual toll increases applied by operators in the state of Sao Paulo from July and those applied from June by the operator, Rodovia MG050, in the state of Minas Gerais.

Key performance indicators
€ m	Traffi c (mi l l i	ons of k m travel	l ed)		Revenue			EBITDA
			%			%			%
	2015	2014	i nc./(dec.)	2015	2014	i nc./(dec.)	2015	2014	i nc./(dec.)
Triangulo do Sol	1,465	1,511	-3.1%	114	134	-15%	8 8	103	-15%
Rodovias das Colinas	2,042	2,080	-1.8%	125	145	-14%	9 1	116	-22%
Rodovia MG050	795	804	-1.1%	2 7	3 2	-16%	1 8	2 1	-14%
Total	4,302	4,395	-2.1%	266	311	-14%	197	240	-18%
Rodovias do Tietè	1,292	1,326	-2.6%
Total including Tietè	5,595	5,722	-2.2%

Key performance indicators

Triangulo do Sol and Colinas increased their tolls by 4.11% from 1 July 2015, based on the rate of general price inflation in the period between June 2014 and May 2015, whilst Rodovias do Tieté raised its tolls by 8.47%, based on the rate of consumer price inflation in the same period. The increase were applied in accordance with the respective concession arrangements.

⁽ 6) Amounts for previous years have been translated at the average peso/euro exchange rates for the relevant year (2013: 658.3; 2014: 756.9; 2015: 726.4), whilst amounts for 2016 and future years have been translated at the prevailing peso/euro exchange rate as at 31 December 2015 (772.7).

⁽ 7)The results of the Group's Brazilian companies for 2015 expressed in euros reflect a decline in the value of the Brazilian real, with the exchange rate moving from 3.12 Brazilian reals per euro (the average rate for 2014) to an average of 3.70 Brazilian reals per euro in 2015 (a reduction in value of 19%).

From 24 June 2015, the tolls applied by the operator, Rodovia MG050, in the state of Minas Gerais rose by 8.17%, based on the rate of consumer price inflation in the period between May 2014 and April 2015, as provided for in the related concession arrangement.

Rodovia MG050's toll revenue was negatively affected by the suspension of charges for the suspended axles of heavy vehicles introduced by federal law 13103/2015, which came into effect on 17 April 2015. The loss of revenue resulting from the entry into effect of above legislation will be subject to compensation in accordance with the concession arrangement.

EBITDA of €197 million is down by approximately €43 million (18%) compared with 2014. At constant exchange rates, EBITDA is down 2.9%.

A total of €67 million was invested in upgrading the network operated under concession in Brazil. With the opening to traffic of the last 5.5 km of the Rodoanel (Sao Paulo's orbital motorway), the entire stretch of this road, covering 105 km, is now operational with a provisional layout⁸ . This road is operated under concession by SPMAR, on whose shares Atlantia Bertin Concessoes has a call option exercisable in accordance with the terms of agreements with the Bertin group, currently SPMAR's controlling shareholder.

Poland

In Poland, the Stalexport Autostrady group recorded total revenue of €64million, marking an increase of 19% compared with 2014. EBITDA of €51million is up 28% on 2014.

The operator, Stalexport Autostrada Malopolska, registered an 8.6% increase in traffic, in terms of kilometres travelled, in 2015, compared with 2014. The number of light vehicles is up 8.5%, whilst heavy vehicles are up 9.1%.

Tolls were increased by 10.7%⁹ from 1 March 2015, rising from 9.0 to 10.0 zlotys for light vehicles, from 15.0 to 16.5 zlotys for vehicles with up to 3 axles and from 24.5 to 26.5 zlotys for those with more than 3 axles. € m Traffi c (mi l l i ons of k m travel l ed) Revenue EBITDA

than 3 axles.
€ m	Traffi c (mi l l i ons of k m travel l ed)		Revenue			EBITDA
			%			%			%
	2015	2014	i nc./(dec.)	2015	2014	i nc./(dec.)	2015	2014	i nc./(dec.)
Stalexport Autostrady group	822	757	8.6%	6 4	5 4	18.5%	5 1	4 0	27.5%
Total	822	757	8.6%	6 4	5 4	18.5%	5 1	4 0	27.5%

⁹ The weighted average increase based on the distribution of traffic in the first quarter of 2015 (in terms of km travelled) over the three classes of vehicle.

( 8)The regulator for the state of Sao Paulo (ARTESP) has also authorised collection of tolls from 2 July 2015, despite the fact that a number of construction works still have to be carried out to complete the section of motorway.

Italian airports

The Italian airports business generated revenue of €804 million in 2015, up €53 million (7%) on the previous year. On a like-for-like basis¹ , total revenue is up €47 million (6%).

Aviation revenue of €565 million is up €45 million (9%) overall on 2014, thanks to traffic growth (passengers up 6.1%, movements up 1.7%) and to the increases in airport fees applied from 1 March 2014 and 1 March 2015. In the case of Fiumicino, the ratio between the maximum permitted revenue for regulated services and fee-paying passengers, under the Planning Agreement, is €29.8, whilst the figure for Ciampino airport is €18.8 per passenger.

Other operating income, which rose €8 million in 2015, also includes insurance proceeds recognised on the basis of a best estimate of the amount payable to cover the rebuilding, safety and salvage costs incurred as a result of the fire at Terminal 3 on 7 may 2015, which was based on a prudent estimate given that the final cost is still being assessed. The figure for 2014 included income recognised following the recovery of amounts receivable from Alitalia in Extraordinary Administration (which had been written off in previous years). On a like-for-like basis, other operating income is up €2 million, reflecting the performance of non-aviation revenue.

Net operating costs of €354 million in 2015 are up €69 million (24%), partly reflecting the abovementioned cost of the rebuilding, safety and salvage work carried out in the areas affected by the fire at Terminal 3. On a like-for-like basis, net operating costs are up €37 million, reflecting:

• the cost of materials and external services, totalling €145 million and up €18 million on the first nine months of 2014. The increase primarily reflects rising maintenance costs (with the aim of ensuring a high degree of efficiency of airport infrastructure and, therefore, service quality), the cost of policing and security services and commercial initiatives (promotions), partly offset by a reduction in the cost of external services following the decision to insource airport cleaning, awarding the contract to the subsidiary, Airport Cleaning Srl, from the end of May 2014;
• concession fees, amounting to €34 million and up €3 million, primarily due to traffic growth;
• net staff costs, totalling €143 million and up €16 million, broadly due to an increase in the average workforce employed by the ADR group and linked to the above insourcing of cleaning services, now carried out by the subsidiary, Airport Cleaning Srl, initiatives designed to improve passenger assistance and the recruitment of staff to work on implementation of the programmes envisaged in the Planning Agreement.

⁽ 1) The term "like-for-like basis", used with reference to certain performance indicators, is defined in the introduction to the "Group financial review" above.

The combined impact of the above events has resulted in EBITDA of €450 million, down €16 million (3%) on 2014. On a like-for-like basis, EBITDA is up €10 million (2%)1²

Traffic performance

The Roman airport system handled 46 million passengers in 2015, marking an increase of 6.1% on the previous year. This result is all the more significant in view of the limitations on operating capacity at Fiumicino airport between 7 May and 18 July 2015 following the fire at Terminal 3.

In terms of the airport system as a whole, the EU segment continues to be the biggest driver of growth, rising 9.7% on 2014 and accounting for 50% of total traffic. This was accompanied by growth in domestic traffic (up 2.7%), reflecting a positive contribution from Alitalia, and an increase in non-UE traffic (up 2.4%). In particular, passenger traffic at Fiumicino airport is up 4.8%, whilst Ciampino registered growth of 16.1%, the latter performance in part due to the decision to switch flights that could no longer operate from Fiumicino as a result of the fire. Capacity at the Roman airport system also grew, with movements up 1.7%, the number of available seats rising 3.1% and aircraft tonnage up 2.9%.

¹ ( ²) After stripping out ADR Engineering's contribution to EBITDA for 2014, in view of its merger with Spea Engineering, a subsidiary of Atlantia SpA, in 2015, the like-for-like increase in EBITDA for 2015 is €14 million (3%).

Breakdown of traffic using the Roman airport system in 2015 (millions of pax)

Change 2015 vs 2014

The breakdown of passengers by geographical area shows increases for the Middle East (up 16.5%), Europe EU (up 9.7%), North America (up 5.6%), the Far East (up 4.8%), the Italian domestic market (up 2.7%) and broad stability for Europe Non-EU; the remaining areas recorded falls (Africa down 16.6% and Central/South America down 1.6%).

Breakdown of passenger traffic using the Roman airport system by geographical area (millions of pax)

Alitalia, the main carrier operating at Fiumicino, recorded a 3.6% increase in passenger traffic in 2015. Increases in traffic were registered by the Domestic segment (up 4.6%) and the International EU segment (up 5.1%). Non-EU traffic was broadly stable.

Aviation activities

Aviation revenue31amounts to €565 million for 2015, up 9% on the previous year. The results were affected by the above fire, which resulted in limitations on air traffic until 18 July 2015. Airport fee revenue for the period under review totals €440 million, an increase of 11%. The improvement primarily reflects traffic growth, in addition to the annual increase in unit fees which, in accordance with the Planning Agreement, were applied from 1 March 2014 and 2015. In detail:

• passenger embarkation fees, amounting to €314 million, are up 11% on 2014, primarily due to the increase in the number of passengers embarked (up 6.2%);
• take-off, landing and parking fees, amounting to €124 million, are up 11%, primarily arising from increases in movements (up 1.7%) and aircraft tonnage (up 2.9%).

Non-aviation activities

Non-aviation revenue⁴² of €207 million in 2015 is in line with the figure for 2014, despite the growth in traffic compared with the comparative period. In detail:

retail sub-concessions, which include sub-concessions for the retail sale of goods and services and the advertising business, generated revenue of €115 million. Retail revenue is up 2% on 2014,

⁽⁴⁾ This includes retail sub-concessions, property management, car parks and advertising, as well as other activities carried out for external customers.

⁽³⁾ This primarily includes revenue from airport fees, security services and centralised infrastructure.

reflecting the above traffic growth and despite a less profitable passenger mix and the closure of a number of shops following the fire. Over 100 outlets had to be closed, even if in some cases only temporarily, and around twenty shops were damaged and have yet to reopen at the end of the year. The advertising business generated revenue of €10 million, slightly down on the same period of the previous year;

• revenue from property management, which includes the sub-concession of space and provision of the related utilities and services, amounts to €50 million, down 6% on the figure for 2014;
• car park management generated revenue of €28 million, slightly down on the previous year (1%).

Capital expenditure

Design and construction work in implementation of the Master Plan, envisaged in the Planning Agreement, continued in 2015, with expenditure of €336 million up €163 million on 2014. The principal works relating terminals and piers regarded construction of the new departure areas E/F and the avant-corps for Terminal 3. Work on the final design for the eastern area of Fiumicino airport is nearing completion, with this project consisting primarily of the enlargement and reconfiguration of Terminal 1, and construction of a new retail plaza and of a new departure area A. The planned replacement of the façade of Terminal 3 is awaiting the relevant consents. The upgrade of the landside area of the arrivals hall in Terminal 3 was completed, as was the restyling and functional improvement of the zone connecting the landside areas of Terminal 1 and Terminal 2 and the arrivals corridor for departure area D. With regard to work on runways and aprons, work on the upgrade of Runway 3 and construction of the de-icing stand at the head of Runway 1 was completed. The upgrade and extension of the aprons included in the Piazzali 200 ("200 Aprons") project in the eastern part of the airport is nearing completion. An upgrade of the underpass for road vehicles beneath Terminal 3 was carried out, whilst similar work at Terminal 1 is nearing completion. In terms of new plant, all the boarding bridges were replaced in departure areas G and D. As regards other investment, work continued on the restyling of advertising spaces through the adoption of innovative solutions (for example, changes to the assets located on the balcony in Terminal 1) and an upgrade of the digital network in the Terminals (in particular, an increase in the number of "free-standing totems").

€M	2015	2014	% IN C R EA SE/ (D EC R EA SE)
Work on terminals and piers	82	34	141%
Departure area E/F (Avant-corps and 3rd BHS)	80	51	57%
Work on runways and aprons	69	25	176%
Work o n baggage handling sub-systems and airport	47	11	n.s
equipment Work on technical systems and networks	12	17	-29%
Other	46	35	31%
TOTAL ( *)	336	173	94%

(*) Including capital expenditure funded by ENAC, totalling €18 million in 2015 and €22 million in 2014.

Other activities

Autostrade Tech

Autostrade Tech is a provider of Information Technology Systems, operating in Italy and overseas. It supplies systems used for tolling, traffic management and information, urban access controls, car parks and speed checks.

Revenue of €65 million in 2015 is up €13 million compared with 2014. The improvement is primarily due to the positive impact of increases in the volume of Telepass devices supplied, the supply of tolling equipment to Sat Lavori and the contract with Pedelombarda Lombarda for design and other work on a free-flow tolling system for a section of the A8-A9 and on the first lot of the Como and Varese orbital motorways.

EBITDA for 2015 amounts to €11 million, up €2 million on 2014.

Electronic Transaction Consultants

Electronic Transaction Consultants (ETC) is the leading US provider of systems integration, hardware and software maintenance, customer services and consultancy in the field of free-flow electronic tolling systems.

In 2015, ETC generated revenue of €71 million. EBITDA of €10 million is a €7 million improvement on 2014.

Spea Engineering

ADR Engineering was merged with and into Spea Ingegneria Europea on 1 June 2015 and with retroactive effect from 1 January 2015. The latter then changed its name to Spea Engineering. The company supplies engineering services involved in the design, project management and controls connected to the upgrade and maintenance of the Group's motorway and airport infrastructure. Revenue in 2015 amounted to €108 million, up €31 million (40%) on the previous year. This is primarily due to the airport work acquired following the merger and the award of new contracts overseas. 94% of the company's total revenue during the period was earned on services provided to the Group.

EBITDA for 2015, amounting to €29 million, is up €11 million on the previous year, primarily due to the increase in activity resulting from the merger.

Pavimental

The company provides the Group with motorway and airport maintenance services and carries out major infrastructure works for the Group and external customers.

Revenue in 2015 amounted to €507 million, up €106 million (26%) on 2014. The increase primarily reflects the award of contracts by Aeroporti di Roma in 2015 and additional construction services provided to Autostrade per l'Italia (primarily for the A8, the Variante di Valico and the Florence Interchange).

EBITDA of €24 million is up €6 million on the figure for the previous year, primarily due to the above increase in airport and infrastructure construction services.

Innovation, research and development

The Group's innovation, research and development activities aim to offer innovative, technologically advanced solutions designed to improve service quality and infrastructure efficiency, and minimise the impacts of activities right from the start of the design process.

Innovation, research and development activities, some of which are long-term in nature, are undertaken by the relevant departments, in cooperation with other Group companies, in collaboration with research centres and universities. Once again in 2015 activities focused on many projects, some of which were co-financed at EU and national level.

The various projects in the motorway sector reaching the application stage in 2015 include:

• the application of new information systems for use in monitoring traffic and accidents, with the aim of improving traffic management and the planning of roadworks;
• the free and geolocalised My Way application, providing real-time information on traffic, roads and motorways, including those in urban areas, and enabling the computation of journey times and average speeds in sections of motorway served by the Tutor system, cameras and motorway services;
• the Pyng application for the payment of parking;
• the launch of interoperable DSRC (Dedicated Short Range Communication) technology in Europe;
• the start-up of a payment service for the ferries serving the Strait of Messina, using a Telepass device;
• the installation and testing of newly designed wireless devices in the Porto San Giorgio tunnel on the A14 motorway for emergency communications and new aspiration systems to draw off flammable and toxic liquids in accordance with Legislative Decree 264/2006;
• the use of new card readers in compliance with international security standards.

The main activities underway in 2015 include:

• participation in the EU-financed REETS project, regarding implementation of a Regional European Electronic Toll Service, set up by European Directive 2004/527EC and Decision 2009/750/EC;
• participation in the nationally funded EASYRIDER project regarding development of new interaction services between fixed structures and vehicles, aimed at optimising traffic flows and road safety, especially relating to urban and extra-urban infomobility;
• participation in the European EASYWAY programme for the development and application of ITS services (information for road users, traffic management, freight transport and logistics) required to meet EU objectives regarding safety, and the environmental impact of transport and mobility;
• continuation of the nationally funded Landslides Early Warning (LEW) project, regarding development of a monitoring and early warning system to reduce hydrogeological risk in order to protect people, including the circulation of information;

application of new LED lighting systems for motorway tunnel entrances in order to improve safety conditions and energy efficiency.

These activities also include those carried out in relation to the conduct of European or national research, development and innovation programmes and the establishment of transport-related regulations, such as safety, the implementation of intelligent transport and automated tolling systems, by participating in bodies and associations at regional, national and European level.

Research and development activities in the airport sector include:

• conclusion of the design phase and start-up of the implementation of the Smart Grid pilot project, designed to save energy and more effectively manage internal distribution networks; the project consists in the creation of an "energy pool" able to store electricity from several renewable sources, making it available when required (in the event of any malfunctions in the electricity network or airport plant);
• conclusion, following its acceptance by the EU Commission, of the EU-financed CASCADE project following a tender process. The project, coordinated by the Fraunhofer research centre in Germany, aims to save energy at airports by using innovative fault detection and diagnosis (FDD) technology, applied in particular to heating and air conditioning systems. ADR participated as part of a consortium set up with other European companies, including SEA SpA, the company that manages Milan's airports. The initiative is producing interesting results in terms of the prevention of malfunctions and improvements to plant efficiency and of energy savings. In view of the results achieved, in addition to Terminal 1, where the system was tested, it has also been installed in the other terminals. The system will also be installed in the avant-corps and in Pier C.

Group companies' total expenditure on innovation, research and development in 2015 amounts to €8 million.

This sum represents the total amount spent by the Group on research and development, including operating costs and investment in staff and the related expenses.

Workforce

As at 31 December 2015, the Group employs 14,406 staff on permanent contracts and 1,253 temporary staff, resulting in a total workforce of 15,659, including 12,538 in Italy and 3,121 at overseas companies. This is up 831 (6%) on the 14,828 of 31 December 2014¹ .

The increase in permanent staff at 31 December 2015 compared with the end of 2014 (up 718) primarily reflects events at the following Group companies:

• the Aeroporti di Roma group (up 453² ), primarily due to the expansion of the operations of Airport Cleaning (which, from March 2015, is also responsible for cleaning services in the western area of Fiumicino airport), expansion of the technical departments linked to the infrastructure development plan envisaged in the Planning Agreement, and the conversion of a number of temporary contracts into permanent ones as a result of the contractual flexibility introduced by the recent reform of employment law;
• the Brazilian companies (up 159), due to the insourcing of routine maintenance at the operators, Triangulo do Sol and Colinas;
• Autostrada Tirrenica (up 73), following this company's consolidation from 30 September 2015;
• Electronic Transaction Consultants (up 56), reflecting an increase in contract work;
• Giove Clear (up 61), reflecting the conversion of a number of temporary contracts into permanent ones, due to the contractual flexibility introduced by the recent reform of employment law;
• Italian motorway operators (down 40), primarily due to a slowdown in recruitment;
• the Chilean companies (down 48), due to staff cuts following the centralisation of certain activities.

The change in temporary staff at 31 December 2015 compared with the end of 2014 (up 113) primarily reflects events at the following Group companies:

• Pavimental (up 80), primarily due to the start-up of work on new contracts;
• the Aeroporti di Roma group (up 74), primarily due to increased security measures and improvements to passenger assistance;
• Italian motorway operators (up 28), primarily due to the different number of seasonal toll collectors required by Autostrade per l'Italia in the comparative periods;
• Giove Clear (down 66), reflecting the conversion of a number of temporary contracts into permanent ones as a result of the contractual flexibility introduced by the recent reform of employment law.

⁽²⁾Workforce data for ADR Engineering in 2014 has been excluded from the figures for the ADR group and reclassified to Spea Engineering following the merger that took place in 2015.

⁽¹⁾Excluding Ecomouv, Ecomouv D and B, Tech Solutions Integrators and TowerCo, whose contributions to the results for 2014 have been accounted for in "Profit/(Loss) from discontinued operations".

The average workforce (including agency staff) is up from 13,661 in 2014 to 14,600 in 2015, marking an increase of 939 on average (up 7%). This increase primarily reflects:

• the Aeroporti di Roma group (up 482 on average), primarily linked to the insourcing, started in 2014, of cleaning services at Fiumicino and Ciampino airports, the emergency measures and operational procedures introduced following the incident of 7 May 2015, recruitment linked to implementation of the infrastructure development plan envisaged in the Planning Agreement and improvements to passenger assistance;
• the Brazilian companies (up 290 on average), due to the insourcing of routine maintenance at the operators, Triangulo do Sol and Colinas;
• Pavimental (up 148 on average), primarily due to the start-up of work on new contracts;
• Spea Engineering (up 22 on average), reflecting an increase in the volume of work;
• Electronic Transaction Consultants (up 24 on average), reflecting an increase in contract work;
• Autostrada Tirrenica (up on average 17), following this company's consolidation from the last quarter of 2015;
• Atlantia (up 16 on average), mainly to boost the holding company's organisational structure;
• the Stalexport Autostrady SA group (up 12 on average), primarily due to the recruitment of additional toll collectors in response to traffic trends;
• Giove Clear (up 10 on average), reflecting an expansion of operations;
• Italian motorway operators (down 61 on average), primarily due to a slowdown in recruitment (at Autostrade per l'Italia, Tangenziale di Napoli and Autostrade Meridionali) and the transfer of staff from Autostrade per l'Italia to Atlantia;
• the Chilean companies (down 22), due to staff cuts following the centralisation of certain activities.

Information on the performance of staff costs is provided in the "Group financial review".

Permanent staff

CATEGORY	31 December 201531 December 2014	INCREASE/(DECREASE)
			ABSOLUTE	%
Senior managers	238	234	4	2 %
Middle managers	989	974	1 5	2 %
Administrative staff	6,328	6,074	254	4 %
Manual workers	3,618	3,121	497	16%
Toll collectors	3,233	3,285	(52)	-2%
Total	14,406	13,688	718	5 %

Temporary staff

CATEGORY	31 December 201531 December 2014	INCREASE/(DECREASE)
			ABSOLUTE	%
Senior managers	5	2	3	150%
Middle managers	-	-	-	n.a.
Administrative staff	604	487	117	24%
Manual workers	457	492	(35)	-7%
Toll collectors	187	159	2 8	18%
Total	1,253	1,140	113	10%

Average workforce (*)

CATEGORY	2015	2014	INCREASE/(DECREASE)
			ABSOLUTE	%
Senior managers	242	240	2	1 %
Middle managers	970	958	1 2	1 %
Administrative staff	6,473	6,227	246	4 %
Manual workers	3,689	2,955	734	25%
Toll collectors	3,226	3,281	(55)	-2%
Total	14,600	13,661	939	7 %

(*) Includes agency staff.

Distribution of the Group's workforce

The Group's human resources policies

During 2015, the Group extended its commitment to developing expertise, improving performance, enhancing talent and supporting organisational change.

Regarding initiatives aimed at integrating the Group's people management processes, in 2015 the Group's Human Resources department launched a process designed to capitalise on the Group's skills base, via intercompany mobility and cross-fertilisation initiatives. These initiatives aim to enhance the Group's human resources, promote and encourage the diversification of experience in order to enrich skills and expand cross-company experience.

Annual reviews were conducted in order to assess capabilities and skills. The results are used for the purposes of succession planning, with a view to ensuring the Group's ability to fill key management positions.

The Group's talent management and succession planning procedures were used to support implementation of the Group's new organisational model, which involved the introduction of new departments with responsibility for business processes within the main subsidiaries, primarily with the aim of concentrating various areas of business under one department.

The partnership programme with Italy's major universities and polytechnics, called Atlantia per la Conoscenza (Atlantia for Knowledge), continued. The initiative entails provision of scholarships for the best students enrolled in the final year of Master's Degree courses, focusing in particular on the faculties of Engineering and Economics.

Details of remuneration policies are provided in Atlantia's Remuneration Report for 2016 (as approved by the Board of Directors on 4 March 2016) and in the information circulars for the various equity plans, prepared pursuant to art. 84-bis, paragraph 1 of the Regulations for Issuers and available for inspection on the Company's website at

http://www.atlantia.it/it/corporategovernance/remunerazione.html

Training

Training plays a key role in career development, process innovation and in achieving the Group's business targets.

A total of 226 thousand hours of training was provided in 2015, involving over 11 thousand participants at a total cost of €2.5 million (of which 44% financed by interprofessional funds for continuous training).

As of the importance given to the quality of customer services, the Group renewed its commitment to providing training for front-end airport staff and motorway personnel, focusing on improvements to customer relations and customer care.

Organisation

The Group's senior management positions were reorganised in 2015, with the holding company, Atlantia, adding responsibility for corporate development to its existing role as a provider of strategic guidance³¹ .

Overall, the organisational activities of the various sub-holding companies focused on improving the quality of services (via the constant monitoring of pre-defined quality indicators and the implementation of specific projects) and compliance with control and certification systems. Autostrade per l'Italia's new organisational structure was also implemented in 2015. This involved eliminating the role of General Manager and the creation of a Chief Operating Officer with responsibility for infrastructure development and new investment, and a Chief Operations and Maintenance Officer, with overall responsibility for existing motorway operations. Aeroporti di Roma's organisation was modified, with the creation of the position of General Manager with overall responsibility for the company's business processes. In addition, an External Relations and Corporate Affairs unit was also set up within the Chief Executive Officer's staff.

Industrial relations

The Group reached a number of agreements with the labour unions in 2015. In the Italian motorways segment, the most important regard the staffing of existing and future toll stations, plans for further automation of toll collection, the management of operational staff turnover, welfare, training and productivity and performance bonuses.

¹ ( ³) Atlantia SpA, the holding company, is responsible for direction and strategic coordination activities for the Group (Infrastructure and Investment Projects, Finance, Administration and Investor Relations, Reporting and Cost Control, Human Resources, Public Relations, Corporate Governance, Legal and Corporate department, Internal Audit).

Other agreements reached during the year regarded improvements to customer service and training funded by Fondimpresa, with particular attention to operational personnel, such as contact centre staff and toll collectors.

In the airports segment, given the growing degree of attention to improving the quality of the services provided to customers/passengers and to individual performance, the following union agreements were reached with regard to non-managerial personnel:

• Performance Bonus: new award criteria for the period 2015-2017, giving greater weight to the service quality indicators with respect to those for profitability. The agreement also applies measurement of the quality perceived by passengers across all the services offered by ADR and other group companies that apply National Collective Labour contract for Air Transport personnel covered by the agreement, and reconfirmed the targets set out in the Service Charter;
• funded training: agreements relating to funding for technical, behavioural and compliance training from the interprofessional fund for continuous training set up by Confindustria (Fondimpresa).

Workplace health and safety

Atlantia implements a health and safety management system certified in accordance with the OHSAS 18001 international standard, the Workplace Health and Safety Organisation and Management Model. The Model defines the responsibilities, processes, procedures, staff, means and tools for implementing the Group's Safety Policies within the various departments, with a view to preventing accidents, in compliance with current legislation. The Model aims to ensure that the above policies are efficiently implemented and smoothly integrated within the Group's operations.

In 2015, the Group's Italian and overseas companies implemented various initiatives aimed at raising staff awareness of health and safety issues. Above all, this entailed adoption of a Workplace Health and Safety Management System that meets OHSAS 18001:2007 requirements.

Corporate governance

Atlantia SpA's Corporate Governance system is based on a collection of rules that are in line with regulatory guidelines and best market practices.

This system is based on Atlantia SpA's Corporate Governance Code, which has been drawn up in accordance with the principles and criteria contained in the Corporate Governance Code for listed companies published by the Corporate Governance Committee in July 2014.

In accordance with the current Articles of Association, management of the Company is assigned to the Board of Directors, whilst supervisory functions are the responsibility of the Board of Statutory Auditors and responsibility for auditing the Group's accounts is assigned to the Independent Auditors elected by General Meeting of shareholders.

Based on the provisions of art. 30 of the Articles of Association, the Chairman represents the Company. Separation of the roles of Chairman and Chief Executive Officer means that it is not necessary to appoint a Lead Independent Director.

Based on the provisions of the Company's Corporate Governance Code, the Board of Directors has established the following board committees: the Human Resources and Remuneration Committee and the Internal Control, Risk and Corporate Governance Committee. The Board has also appointed the Director, Guiliano Mari, as Director responsible for internal control and risk management.

In implementation of the provisions of Legislative Decree 231/2001, Atlantia has adopted the Organisational, Management and Control Model and has set up a Supervisory Board.

Lastly, in compliance with the CONSOB requirements contained in the Regulations for Related Party Transactions (Resolution 17221 of 12 March 2010, as amended), on 21 October 2010 Atlantia set up a Committee of Independent Directors with responsibility for Related Party Transactions – consisting of three independent Directors – and, on 11 November 2010, approved the new Procedure for Related Party Transactions, which came into effect from 1 January 2011, and was subsequently updated by the Board of Directors on 11 December 2015.

In addition to the above Procedure, Atlantia has, among others, adopted the Procedure for Market Announcements, the Procedure for relations with the Independent Auditors, the Procedure for Reporting to the Board of Statutory Auditors, the Code of Conduct for internal dealing, and the Procedure for Notification of the Ethics Officer.

The Company's Governance system is completed by the regulations contained in the Articles of Association and in the General Meeting Regulations.

Sintonia SpA (formerly Sintonia SA, which was transferred to Italy and registered with Rome Companies' Register on 27 June 2012 under the name of Sintonia SpA) is the shareholder that directly holds a relative majority of the issued capital of Atlantia SpA. Following termination, with effect from 16 June 2015, of the shareholders' agreement that, in certain provisions, regarded Atlantia, Sintonia SpA owns 30.25% of the Company. Despite this new level of investment, given that there have been no changes in fact (e.g. the composition of the Board of Directors), Sintonia SpA is deemed to hold sufficient voting rights to exercise dominant influence at the ordinary general meetings of Atlantia SpA's shareholders, pursuant to art. 2359 of the Italian Civil Code.

However, Sintonia does not manage or coordinate Atlantia SpA, , pursuant to art. 2497 of the Italian Civil Code, as was confirmed in a specific declaration sent to Atlantia SpA on 12 March 2009 by the former Sintonia SA and by Schemaventotto SpA.

Given that there have not been any further announcements or changes in circumstances, the basis for considering Atlantia as not subject to management and coordination by Sintonia is deemed to be unchanged.

Autostrade per l'Italia, which is a wholly owned subsidiary of Atlantia, is instead subject to management and coordination by Atlantia. Moreover, following the Group's reorganisation in 2007, Atlantia has transferred responsibility for management and coordination of the motorway operators and industrial companies controlled by its subsidiary to Autostrade per l'Italia itself.

Following the merger of Gemina with and into Atlantia, with effect from 1 December 2013, the board of directors of Aeroporti di Roma - a company in which Atlantia has a 95.92% interest - declared on 21 February 2014 that it is managed and coordinated by Atlantia. Aeroporti di Roma itself manages and coordinates its subsidiaries.

Finally, following completion, in 2015, of the Group's restructuring of its holdings in Pavimental SpA and Spea Engineering SpA (resulting from the merger between Spea – Ingegneria Europea SpA and ADR Engineering SpA), Atlantia SpA is responsible for management and coordination of the two companies, which have published the relevant announcements required by law.

The full text of the "Annual report on Corporate Governance and the Ownership Structure", prepared in accordance with indications contained in the format for corporate governance reports formulated by Borsa Italiana, is available in the "Corporate Governance" section of the Company's website at www.atlantia.it.

Sustainability

Sustainability is the tool used by Atlantia to define, implement and communicate its social, environmental and economic commitments, based around an ethical approach, measurable transparency and the production of value for all the Group's stakeholders over time. The key areas of intervention regard: the safety of infrastructure, continual improvement of customer service quality standards, operational excellence, workplace health and safety, respect for the environment and energy efficiency, dialogue with communities and promotion of local development initiatives, as well as enhancement of people, who are at the centre of all Group activities.

As confirmation of the effectiveness of the Group's approach and proof of its commitment, Atlantia was again rewarded in 2015 with reconfirmation of the Group's membership of the prestigious Dow Jones Sustainability World and Europe Indices, which select the best companies on the basis of economic, environmental and social criteria. Atlantia was ranked among the best performers in the transport and transport infrastructure sectors, scoring highly for its environmental strategy, stakeholder engagement and staff development policies.

Economic responsibility

The economic responsibility underpinning the activities of the Group's companies requires them to maintain their ability to create long-term value for the various categories of stakeholder. Distributable Integrated Added Value (DIAV) is the tool used to measure how the value generated is distributed among the different stakeholders. DIAV is calculated by subtracting the costs of materials, services and provisions and other expenses from the value of production, which includes toll revenue from Italy and overseas, revenue from airport management and other operating income. Extraordinary and ancillary items¹ , as well as amortisation and depreciation are then deducted from the gross Added Value from ordinary activities to obtain the total net Added Value. The Added Value parameter serves to provide social information and measure the value (economic and financial) produced by the Company during the year, with reference to the stakeholders who participate in its distribution.

The DIAV of €3,080 million generated in 2015 is up 10% on the figure for 2014, with increases in toll revenue (up 4%), aviation revenue (up 9%) and revenue from construction services (up 35%) all contributing to the improvement. DIAV was distributed to the Group's stakeholders as follows:

• €610 million (20% of the total) was paid to capital providers as interest on borrowings, after deducting financial income;
• 24% of DIAV was paid to shareholders in the form of dividends of approximately €725 million;
• approximately €494 million (16% of the total) was transferred to the government in the form of direct and indirect taxation and deferred tax liabilities. The government as stakeholder also received approximately €477 million in concession fees;
• 8% of the total, amounting to €250 million, calculated as the difference between profit for the year and dividends paid, was kept by the Group and used to finance its operations;

staff accounted for 33% (€1,001 million) in salaries, wages, post-employment benefits, staff-related provisions, Directors' fees, social security contributions and other expenses.

DIAV BREAKDOWN	2015	2014	2015/2014 (%)
A) Value of production	6,682,460	6,108,267	9%
Toll revenue	3,835,930	3,677,679	4%
Aviation revenue	565,312	519,979	9%
Revenue from construction services	716,412	530,502	35%
Contract revenue	106,467	69,319	54%
Other operating income	1,458,339	1,310,788	11%
B) Intermediate costs of production	-2,486,086	-2,370,541	5%
Raw and ancillary materials and consumables, purchases of goods for resale	-378,510	-341,955	11%
Service costs	-1,457,839	-1,141,158	28%
Lease expense	-16,466	-14,576	13%
Provisions	-74,911	-349,868	-79%
Other operating costs	-558,360	-522,984	7%
Gross added value from ordinary activities	4,196,374	3,737,726	12%
C) Ancillary and extraordinary items	-199,869	47,360	n/s
Gross total added value	3,996,505	3,785,086	6%
- Amortisation and depreciation	-916,892	-875,964	5%
Net total added value	3,079,613	2,909,122	10%

Note: The added value and its distribution were calculated using accounting data from the income statement, with application of the methods established by the GBS Social Reporting Study Group.

DIAV breakdown 2014 – 2015 (€m)

Service quality

Improving service quality is a key objective in all the areas of business in which Atlantia operates. This entails constant monitoring of the standard of service provided and the ongoing implementation of improvements.

Motorways

In 2015, the number of accidents on the network operated by Autostrade per l'Italia and its Italian subsidiaries (excluding SAT to provide a like-for-like basis for comparison with 2014), totalled 15,170 (up 2.1% compared with 2014), registering an accident rate of 31.55, broadly in line with the figure for 2014 (31.84). However, the fatal accident rate is up from 0.30 to 0.32.

There continues to be a high level of safety on the Italian motorway network, thanks to the initiatives taken by the Group over the years, such as deployment of the "Tutor" system for measuring average speeds, continual improvements in maintenance standards information campaigns designed to raise safety awareness among road users.

Improvements in management of the network have enabled the Group to minimise traffic queues and tailbacks, measured by the Total Delay indicator^{2 1}. The overall Total Delay for the network managed by Autostrade per l'Italia in 2015 is approximately 4.48 million hours, up 11% on the figure for 2014 due to increased traffic. The indicator remains, however, less than half the level recorded in 2006 (9.8 million hours).

In addition, Autostrade per l'Italia deploys a series of instruments, systems and devices to provide traffic information and a widespread network of Information Centres, operating 24 hours a day, 7 days a week, throughout Italy. All incidents with an impact on road conditions are registered by the information system and reported in real time, either directly or using specific software, through the various communication channels (Variable Message Panels, radio channels, the internet, satellite navigation systems, etc.) under the supervision of the Multimedia Centre in Rome, which operates round the clock.

During snow events, Autostrade per l'Italia implements a series of operational procedures to manage road traffic.

Customer satisfaction with the motorway service is measured through Customer Satisfaction surveys, conducted periodically by specialised firms and/or via telephone interviews.

In 2015, Autostrade per l'Italia's Customer Satisfaction Index (CSI), based on a sample of 3,602 customers interviewed via phone on two occasions during the year, and measured on a scale from 0 to 10, stood at 7.20, marking an increase with respect to 2014 (7.13). The components analysed are: safety, traffic, service areas, toll stations and the payment systems offered.

(2) Total Delay ("TD") measures the difference between the average transit time for a section of the network in the period under review and the average time under normal traffic flow conditions at a specific average speed typical of the section in question. This difference is then multiplied by the number of vehicles in transit, thereby obtaining the total delay for all customers using the section in question.

Customer satisfaction at Autostrade per l'Italia

Airports

In keeping with the progress made in 2014, surveys of both quality provided and quality perceived continued to show improvements in the main operational processes. Following the fire that hit Terminal 3 on 7 May, it was necessary to halt customer satisfaction surveys, given the drastic impact on the way in which the principal operational processes were managed.

The performance of cleaning services was well ahead of 2014: daily passenger interviews conducted by ADR (around 2,000 interviews each month) revealed that 90% of passengers expressed satisfaction with the cleanliness of toilets in the first 4 months of the year, compared with 84% in the previous year, whilst 91% expressed satisfaction with the cleanliness of terminals and gate areas, compared with 80% in 2014. The level of customer satisfaction in the fourth quarter of 2015 stands at 4.49 (on a scale of 1-poor to 6 excellent), marking an improvement of around 1% compared with the first quarter of 2015, when the figure was 4.46.

During 2015, the level of service offered by Ciampino airport remained broadly in line with the previous year, with the airport proving able to cope with the increase in traffic resulting from the redistribution of flights during the period when capacity at Fiumicino airport was limited due to the fire. With regard to interviews conducted in order to monitor customer satisfaction at Ciampino (around 800 each month), the overall average score for passengers at Ciampino in 2015 is 4.23, compared with 4.25 in 2015 (on the same scale used for Fiumicino above).

With regard to the Quality and Environmental Protection Plan, forming part of the Planning Agreement entered into with ENAC, ADR again met all the related targets for both the airports it operates in 2015:

• the overall score for Fiumicino airport, which measures the improvement in service quality, computed in accordance with the method set out in the Planning Agreement, shows an improvement of 17.36%, compared with the upper end of the target range of 7.93% in the above Agreement;
• the overall score for Ciampino shows an improvement of 7.14%, compared with the upper end of the target range of 7.10% set out in the Planning Agreement.

In order to ensure compliance with the above indicators, ADR carries out daily surveys of both passenger satisfaction and the quality of the main services provided: check-in, hand baggage screening, baggage reclaim and the punctuality of departing flights.

At Fiumicino, the surveys reveal performances for check-in procedures, for both domestic and international flights, and for security checks above the expected standards. Baggage reclaim and punctuality, on the other hand, have failed to meet the required standards.

At Ciampino, the overall situation is stable and in keeping with the type of low-cost passenger served, with the exception of security checks, where there has been a sharp improvement, despite the relevant standards having been raised with respect to the previous year (from 10 minutes in 2014 (in 90% of cases) to 8 minutes in 2015 (in 90% of cases).

KEY INDICATORS OF AIRPORT QUALITY	UM	2015 (3)	2014 (4)	Standard
Fiumicino
Check-in waiting times for domestic flights, within 6 minutes	%	95.9	96.5	90
Check-in waiting times for international flights, within 15 minutes	%	95.4	90.3	90
Waiting times for carry-on baggage security screening, within 10 minutes for flights at risk, within 5 minutes for other flights	%	95.6	93.9	90
Delivery of first bag from block-on within set time	%	75.8	84.1	90
Delivery of last bag from block-on within set time	%	79.6	86.7	90
Punctuality of departing flights (flights departing with less than 15 minutes' delay)	%	66.7	74.8	75
Ciampino
Check-in waiting times, within 17 minutes	%	86.1	88.6	90
Waiting times for carry-on baggage security screening, within 8 minutes	%	97.1	93.2	90
Delivery of first bag from block-on within set time	%	90.9	91.0	90
Delivery of last bag from block-on within set time	%	90.4	90.4	90
Punctuality of departing flights (flights departing with less than 15 minutes' delay)	%	79.6	84.2	85

(3) Due to the fire on 7 May, the 2015 figures for FCO do not include the period from 7 May to 30 September, with the exception of the punctuality indicator.

(4) Compared with the data published in the 2014 Annual Report, the 2014 figures for security screening (FCO and CIA) and delivery of the last bag (CIA) have been recalculated on the basis of the standards (Service Charter) in force from 26 June 2015.

The environment

Environmental responsibility is incorporated at all organisational levels and promoted among all parties the Group has dealings with, and thus permeates all phases of its activities.

During the phases of design, implementation and use of infrastructure, appropriate solutions are identified aimed at achieving ever higher levels of environmental compatibility. The Group is committed to using and sustainably managing environmental inputs and outputs, including raw materials, water, deicing salt and waste products.

Use of resources

In managing its activities the Group makes necessary use of materials whose impact on the environment should be constantly monitored and limited. The materials normally used are: quarry materials, bitumen, iron and steel and cement. Optimising use of the materials employed is a constant concern in managing the Group's activities. There is also consumption of products, albeit limited, for office activities. Another essential material used to ensure that motorways are safe and kept open during the winter months are the chlorides used to prevent ice forming on roads. In 2015, the Group's motorway operators used a total of 72,402 tonnes of de-icing salt during the winter in Italy (97%) and Poland and Chile (3%), marking a slight increase of around 2% compared with the previous year. In terms of winter operations at airports, 18,243 litres of de-icing fluid were used in 2015 in order to remove any ice and snow from aircraft before take-off.

The Group's water consumption registered a slight reduction (0.5%) compared with 2014, with total consumption of around 4.29 million cubic metres, with 32% represented by reclaimed water.

At Fiumicino airport, for example, the presence of a biological treatment plant enables waste water to be reused in industrial applications. The industrial water is used primarily to clean the tanks and pumps used in lifting gear, in fire-fighting equipment and the heating systems that serve the airport.

A factor to be taken into account is the higher consumption of the Chilean companies operating in the Santiago area, which experiences a long dry season that requires more water for the irrigation of green spaces and replenishment of the network of firefighting reservoirs.

Energy and climate change

Among environmental issues, special attention is undoubtedly focused on energy via various types of projects and initiatives aimed at adoption of renewable energy sources, and the study and implementation of eco-efficient solutions in terms of consumption.

Commitments on the energy front also enable important synergies with emission monitoring, management and reduction and, more generally, with the approach to the issue of climate change. The main energy sources used by the Group are fuel - directly used for heating and air conditioning buildings, plant operation, maintenance equipment, service vehicles and generators - and electricity for powering the various systems and equipment.

The Group consumed 2,903 TJoules of energy in 2015, including electricity, natural gas, LPG, diesel, petrol and ethanol. This figure marks an increase of around 7% compared with the previous year, reflecting a greater use of natural gas and diesel, only partly offset by a reduction in petrol for motor vehicles.

Fiumicino airport, in particular, is served by a co-generation plant fuelled by natural gas, which synergically generates electrical and thermal energy covering around 80% of the airport's energy requirements. The remaining 20% is provided by natural gas and diesel plants.

Again with regard to tri-generation (the combined production of electricity, heat and cooling), in 2015 Autostrade per l'Italia completed the construction of its Rome plant and began functional testing. Work on installation of the plant due to serve the Florence Data Processing Centre is nearing completion. The aim of reducing and optimising energy consumption is also pursued via the use of renewable energy and energy efficiency and saving initiatives.

During the year, the 160 photovoltaic plants installed and in operation along Autostrade per l'Italia's network produced around 11,400 MWh of electricity (including 40% for internal use on site), enabling the emission of approximately 3,694 tonnes of CO2 to be avoided.

A "smart grid" has been installed on the terrace at Fiumicino airport's Terminal 1. The grid is made up of renewable energy plants, consisting of a concentrator photovoltaic plant capable of producing 15 kW of electricity and 20 kW of heat, a thermodynamic solar power plant producing 7 kWt of thermal energy and two micro wind turbines with capacity of 3 kWe, all connected to an intelligent system for storing and managing the energy produced (the plant will come on stream in 2016).

As part of its energy saving programme, in 2015 Group companies continued to implement a series of initiatives, above all with regard to lighting, with the replacement of traditional forms of lighting with LED technology, and air conditioning, with the installation of solar thermal plants, the conversion of heating systems to run on natural gas rather than diesel, the installation of more efficient boilers, the implementation of initiatives in buildings with a view to reducing heat loss, the implementation of automated systems for monitoring air conditioning and heat in order to manage internal temperatures, and the installation of inverters in air conditioning units.

Both the airports operated by Aeroporti di Roma have an energy management system certified in accordance with the ISO 50001 standard. Thanks to a continually updated energy action plant, this enables the company to plan work to be carried out and investment, and to analyse and monitor energy trends in order to improve performance.

With regard to greenhouse gas emissions, in 2015 the Group's CO2 equivalent emissions (CO2eq) totalled 227,362 tonnes in 2015, up around 6% on the figure for 2014.

In 2015, Fiumicino airport confirmed its 3+ "Neutrality" accreditation under the Airport Carbon Accreditation (ACA) scheme set up by ACI Europe (Airport Council International), offsetting direct and indirect emissions (scope 1 and 2) with the acquisition of carbon credits from renewable energy production projects and projects involving the implementation of energy-saving lighting systems. In 2015, ADR also achieved level 3 ACA "Optimisation" accreditation for Ciampino airport, requiring quantification of all direct and indirect emissions and other indirect emissions (scope 1, 2 and 3) and proof of absolute or relative improvements in performance.

Waste

The total amount of waste produced by the Atlantia Group in 2015 amounted to around 557,000 tonnes, compared with 284,000 tonnes in 2014, with the amount recovered or recycled rising from 67% to 83%. The increase compared with the previous year is due to a rise in the amount of motorway and airport works carried out, which consequently produced mixed waste from demolition and construction activities, as well as soil, rocks and bituminous conglomerate, which account for around 89% of the total recorded.

KEY ENVIRONMENTAL INDICATORS	2015(a)	2014	2015/2014 (%)
Water consumption (m3)	4,287,951	4,308,226(c)	-0.5%
Water recycled (%)	32	32	0.0%
Energy consumption by type (TJoule)	2,903	2,709	7.2%
Diesel	703	638	10.2%
Natural gas	1068	967	10.4%
Petrol	67	72	-6.9%
Electricity	883	837	5.5%
Other	182	193	-5.7%
CO2 emissions (t)	227,362	214,204	6.1%
Direct emissions (c)	148,931	140,623	5.9%
Indirect emissions from electricity consumption (d)	78,431	73,581	6.6%
De-icing salts and fluids (t)	72,420	70,848	2.2%
Waste produced (t)	557,490	284,329	96.1%
% of waste recycled /recovered	83	67	23.9%

a) The 2015 figures only include Autostradale Tirrenica's data for the quarter in which the company was consolidated.

b) This figure differs from the amount published in the 2014 Annual Report following improvements to the system for measuring consumption.

c) This type of emissions includes fuel consumption for heating and air conditioning buildings, motor vehicles, running generators, road maintenance works.

d) This figure has been calculated using updated emission factors. For this reason, the amount for 2014, reported in the previous Annual Report, has been restated. Sources used for emission factors information: ISPRA – Emission factors for the production and consumption of electricity in Italy; Department for Environment Food & Rural Affairs - Greenhouse Gas Conversion Factor Repository; IPPC Emission Factor Database.

Government and the community

A leading international player in the motorway and airport concessions sector, the Group works closely with communities and maintains constant dialogue with central and local government authorities throughout all stages of its operations. At central government level, the Group's vital counterparties are the Ministries of Infrastructure, the Environment, Heritage and Culture and Tourism, parliamentary committees – during the discussion phase of new regulatory proposals for the sector – supervisory and monitoring bodies, and government-level technical organisations. Relations with local stakeholders, regions and municipalities, as well as with government departments, in order to guarantee a shared approach to local planning for development.

In 2015, the ADR Group proceeded with stakeholder engagement activities relating to implementation of the Fiumicino airport development plan. The objectives are: to mitigate conflict at local level and achieve greater consensus regarding expansion of the airport; to improve perceptions and raise interest in airport activities at local and national level.

Suppliers

The Group's main suppliers are businesses that provide goods and services, road and airport construction and maintenance, engineering and architecture firms, telecommunications operators and logistics firms. Group companies have a Register of Suppliers, for which financial, technical and organisational details of potential suppliers are requested and assessed during the qualification process. This qualification process for new suppliers also includes requests for specific information on sustainability backed up by documentary evidence (e.g. sustainability reports, environmental reports, adoption of sustainability

strategies, certification of processes and/or products, implementation of initiatives aimed at developing a socially responsible approach to planning and business management).

All the Group's suppliers must commit to complying with the Group's Code of Ethics and Conduct on their own behalf and on behalf of any authorised sub-contractors, and to meeting all social and environmental obligations, including health and safety at the workplace and the procedures used in disposing of waste and scrap. In order to ensure that suppliers comply with their obligations regarding sustainability, a number of specific audits and training and awareness raising initiatives have been carried out.

In addition, the activities of the "Procurement Planning Committee" continued. This committee, which was set up in 2014 to optimise and standardise procurement policies, met six times in 2015, dealing with issues such as the definition of a more effective Group procurement strategy for the most common goods and services, the adoption of new Group-wide standards for managing suppliers and the impact of the supply chain in terms of sustainability.

Finally, Atlantia confirmed its strategic decision to use local goods and services companies in the countries in which it operates, in order to contribute towards creating value at local level and to mitigate the impact of its logistics.

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Related party transactions

Information on related party transactions is provided in note 10.5 to the consolidated financial statements and note 7.2 to Atlantia SpA's separate financial statements.

Significant regulatory aspects

Italian motorways

Toll increases with effect from 1 January 2016

The decrees issued by the Minister of Infrastructure and Transport and Minister of the Economy and Finance on 31 December 2015 approved the following:

a)Autostrade per l'Italia's right, in accordance with its request to the Grantor, to apply an increase of

• 1.09% with effect from 1 January 2016, corresponding to the sum of the following components:
• 0.00% for inflation;
• 0.97% to provide a return capital expenditure via the "X" tariff component;
• 0.12% to provide a return on investment via the "K" tariff component;
• b) the provisional suspension of the toll increases to be applied by Tangenziale di Napoli, Raccordo Autostradale Valle d'Aosta and Autostrada Tirrenica with effect from 1 January 2016 (the increases thus amount to 0.00%), whilst awaiting approval of the operators' revised financial plans. The toll increases will be finalised by the interministerial decree approving the related addenda revising the financial plans, subject to the right of the operators to recoup any toll increases on the basis of the revised financial plans. Revenue lost as a result of suspension of the increases will be taken into account in the toll increases for 2017. The above companies have challenged the legislation suspending the toll increases for 2016;
• c) the absence of any toll increase for Autostrade Meridionali, given that its concession expired on 31 December 2012. Autostrade Meridionali has brought a legal challenge contesting the above decision, in line with 2014 (the related legal challenge was upheld by the Campania Regional Administrative Court sentence of 22 January 2015) and 2015 (judgement is pending).

Based on bilateral agreements between Italy and France, Traforo del Monte Bianco has applied an increase of 0.2% from 1 January 2016, in compliance with the relevant Intergovernmental Committee resolution. This was determined on the basis of inflation (the average rate for Italy and France).

Legal actions brought by Autostrade Meridionali, challenging the Grantor

In addition to the above challenges regarding tolls, on 19 March 2015 Autostrade Meridionali brought an action before Campania Regional Administrative Court, challenging the Grantor's failure to respond to a request to review its toll structure with effect from 1 January 2015 in order to maintain the same level of revenue for the company, as provided for in the existing toll policies. In a sentence entered on 11 June 2015, Campania Regional Administrative Court upheld Autostrade Meridionali's challenge, ordering the Grantor to respond to the above request within 30 days of the date of notification of the sentence, which took place on 10 July 2015. As things stand, the Grantor has yet to respond to the request.

On 24 April 2015, the company also brought an action before Campania Regional Administrative Court, challenging the Grantor's adoption of a financial compensation plan for the period from 1 January 2013 (the date of expiry of the concession) and 31 December 2015 (the date on which it was assumed that the new operator would take over, at the time of filing the action). The Campania Regional Administrative Court sentence entered on 30 July 2015 upheld Autostrade Meridionali's challenge, ruling that the Grantor's failure to respond to the request for adoption of a new financial plan for the concession period 2013-2015 is unlawful. The Grantor appealed the above sentence before the Council of State in October 2015. Judgement is pending.

Reduced tolls for frequent users

The reduced tolls for frequent users, introduced by the Memorandum of Understanding of 24 February 2014 signed by a number of motorway operators, including Autostrade per l'Italia and the trade association, AISCAT, have been extended, at the request of the Minister of Infrastructure and Transport on 31 December 2015, for a further 12 months, and therefore until the end of 2016. Recovery of the revenue lost as a result of the initiative during the period 1 June 2014 – 31 December 2016 is assured on the basis of the criteria set out in the Memorandum. One of the options for operators requesting such a solution (as notified to the above Ministry by Autostrade per l'Italia) is the application of a specific toll increase to be introduced in the first year of the next regulatory period.

II Addendum to Autostrade per l'Italia's Single Concession Arrangement

On 10 December 2015, the Ministry of Infrastructure and Transport and Autostrade per l'Italia signed the II Addendum to the Single Concession Arrangement, which has added the Casalecchio - Northbound interchange to Autostrade per l'Italia's investment commitments. This project requires a commitment to invest up to a total of approximately €157 million, with around €2 million already invested as at 31 December 2015 to cover the cost of design, and the remainder to be paid to ANAS on the basis of the state of progress of the works. ANAS is to build and then manage the road. The Addendum will be effective once the Minister of Infrastructure and Transport and Minister of the Economy and Finance have issued the relevant decree and it has been registered with the Court of Auditors.

Addendum to Autostrada Tirrenica's Single Concession Arrangement

In response to observations from the European Commission regarding, among other things, extension of the concession to 2046, on 14 October 2014 the Grantor sent Autostrada Tirrenica a draft addendum envisaging extension of the concession to 2043, completion of work on the Civitavecchia– Tarquinia section (in progress), and eventual completion of the motorway (in sections, if necessary) to be put out to tender.

Completion of the motorway is subject to fulfilment of the technical and financial conditions to be verified jointly by the grantor and the operator and execution of an addendum to the Concession Arrangement, with a viable financial plan attached. Subsequently, on 13 May 2015, a memorandum of understanding was signed by the Grantor, Tuscany Regional Authority, Lazio Regional Authority, Autostrade per l'Italia and Autostrada Tirrenica with an attached draft addendum which, whilst maintaining the duration of the concession until 2043, a viable financial plan for the Civitavecchia– Tarquinia section and the obligation to put all the works out to tender, provides for further commitments regarding the design of the Tarquinia–Ansedonia and Ansedonia–Grosseto South

sections and of the improvements to the existing dual carriageway (the SS. 1 Variante Aurelia) between Grosseto South and San Pietro in Palazzi, retaining the current layout of the road. Performance of the above construction work is subject to positive outcomes of studies of the technical/design, financial and administrative feasibility to be conducted jointly by the Grantor and Autostrada Tirrenica and execution of an addendum with a viable financial plan. Following a request from the Grantor on 5 June 2015, after further discussion with Italy's representative office at the EU, on 24 June 2015 Autostrada Tirrenica prepared and submitted further versions of a financial plan, relating to (i) the sections in operation and the Civitavecchia–Tarquinia

section under construction, and (ii) the entire Civitavecchia–San Pietro in Palazzi section of road, both expiring on 31 December 2040. Finally, again at the Grantor's request, on 6 August 2015 Autostrada Tirrenica submitted a draft financial plan for the sections in operation between Livorno and Cecina and Rosignano and San Pietro

in Palazzi and for the section under construction between Civitavecchia and Tarquinia, with an expiry date of 2028 if the financial design for the San Pietro in Palazzi–Tarquinia section and the financial plan for the entire road not be approved by 2017.

Award of the concession for the A3 Naples – Pompei – Salerno motorway

With regard to award of the concession for maintenance and operation of the Naples – Pompei – Salerno motorway (the previous concession expired at the end of 2012), Autostrade Meridionali, which continues to operate the motorway under a contract extension, submitted its bid on 23 April 2015.

On 16 November 2015, the Tender Committee raised a number of doubts regarding the two bids received, proposing to disqualify both. The two bidders responded with a request to be allowed to resolve the issues raised and thus continue with the tender process. The Grantor thus submitted a supplement to the procedure to the Tender Committee and, on 16 December 2015, informed the bidders that the final outcome of the tender process will be announced at the next public session of the Committee, which has, however, yet to be scheduled.

The bidder, Consorzio Stabile SIS, has brought a legal challenge before Campania Regional Administrative Court, contesting the minutes of the meeting of 16 November 2015. This challenge, which was not notified to Autostrade Meridionali, will be discussed at a hearing on 9 March 2016. The company will be represented in court in order to object to the challenge on the grounds of inadmissibility, given that the conclusions of the Tender Committee are not final in view of the position adopted by the Grantor.

Enabling Act on tenders and concessions

Enabling Act 11 of 28 January 2016 regarding tenders and concessions, designed to apply the relevant EU directives and reform the regulations governing public contracts, was published in the Official Gazette of 29 January 2016.

In this regard, the legislation has introduced an obligation for public and private entities, which hold an existing or future concession to provide public works or services, to award 80% of the related contracts for works, services or goods, with a value of over €150 thousand, by public tender. The legislation also establishes that the remaining part may be carried out in-house, in the case of public entities, or by direct or indirect subsidiaries or associates in the case of private entities. The legislation provides for a transitional period of adjustment of no more than twenty-four months in the case of existing concessions. The only exclusions from compliance with the above obligation are existing or future concessions awarded in the form of project financing, and existing or future concessions

awarded by public tender in accordance with EU law, for which existing legislation governing tenders in force at the date of entry into effect of the enabling act (13 February 2016) will continue to apply. By 18 April 2016, the government is authorised to issue a legislative decree applying the above EU directives, in accordance with the criteria contained in the enabling act.

Overseas motorways

Brazil

The pending legal action regarding the ban on toll charges for the suspended axles of heavy vehicles, involving operators in the State of Sao Paulo, including Triangulo do Sol, is described in detail in the Annual Report for the year ended 31 December 2014. On 24 March 2015, the Supreme Court (Tribunale Superiore di Giustizia or "STJ") for the State of Sao Paulo rejected the challenge brought by the operators with the aim of obtaining a reinstatement of proceedings before the Court of the State of Sao Paulo, ruling it inadmissible. On 14 April 2015, the operators filed an extraordinary challenge against the court's ruling before Brazil's Federal Supreme Court (Supremo Tribunal Federal or "STF"). On 3 June 2015, the STJ refuted the existence of the grounds of a political, social or economic nature necessary for the case to be heard by the STF. On 28 June 2015, the operators filed a further challenge, contesting this preliminary judgement. This challenge was also rejected by the Supreme Court on 5 August 2015.

Thus, as a result of this decision, toll charges for the suspended axles of heavy vehicles are not permitted under the terms of the concession. To date, the operator, Triangulo do Sol (in common with Colinas, which was not a party to the legal action) has, in any event, applied this charge, not in application of any court ruling, but as a means of compensating for the decision, taken by the Public Transport Services Regulator for the State of Sao Paulo (ARTESP) in the same period, not to allow the application of annual toll increases from July 2013.

On 17 April 2015, Federal Law 13103/2015 come into effect. This, among other things, authorises the exemption of road hauliers from the payment of toll charges for the suspended axles of heavy vehicles. The above legislation has been applied by the state of Minas Gerais, whilst the government of the state of Sao Paulo has decided not to apply the exemption. Thus, from 17 April 2015, Rodovias MG050, in Minas Gerais, has ceased charging for the suspended axles of heavy vehicles, whilst operators in the state of Sao Paulo, including Rodovias das Colinas and Triangulo do Sol, continue to levy the charge. Rodovias MG050's lost revenue, following the entry into effect of the above legislation and the resulting cessation of charges for the suspended axles of heavy vehicles, will be recouped in accordance with the terms of the concession arrangement.

The investigation launched by ARTESP on 13 July 2013, with a view to revising the Addenda and Amendments signed and approved by the Regulator and 12 motorway operators in 2006 - the changes were designed to extend the concession terms to compensate, among other things, for the expenses incurred as a result of taxes introduced after the concessions were granted – is described in detail in the Annual Report for the year ended 31 December 2014. On 24 February 2015, the Public Prosecutor for the State of Sao Paulo provided a non-binding opinion the judge appointed to take charge of the investigation relating to the operator, Colinas. This recommended termination of the proceedings underway, reiterating that legality of the Addenda and Amendments of 2006, which were subject to close examination and endorsed by the relevant Ministry. On 10 March 2015, ARTESP responded to the judge, contesting the Public Prosecutor's opinion and requesting that the investigation continue.

On 15 February 2016, the Court of the State of Sao Paulo issued a ruling, granting Rodovias das Colinas the option of submitting a financial assessment to demonstrate its case.

The operators concerned, including Colinas and Triangulo do Sol, and industry insiders, including banks, believe that the risk of a negative outcome is remote. This view is backed up by a number of unequivocal legal opinions provided by leading experts in administrative law and regulation.

Poland

Since 20 June 2012, the Polish Antitrust Authority has been conducting an Explanatory Proceeding to investigate Stalexport Autostrada Maloposka.

The proceeding aims to investigate the company's "abuse of its dominant position" with regard to the tolls charged to road users when carrying out construction and extraordinary maintenance work, given that Stalexport Autostrada Maloposka is held to operate as a "monopoly".

Should the Authority rule that there has been an "abuse of its dominant position", the proceeding could result in a fine.

Whilst reserving the right to challenge any ruling the Authority's investigation may result in, the company is taking steps to define the timing and amount of eventual reductions in tolls whilst such work takes place.

At the end of a similar investigation in 2008 the local Antitrust office fined the Polish company approximately €300 thousand, given that it had not put in place a procedure for reducing tolls during the work. The fine was confirmed at various instances, including by the Supreme Court.

Italian airports

Fee increases

In keeping with existing regulations and with the ENAC Guidelines for the "Procedure for consultation between airport operators and users for ordinary planning agreements and those in derogation", on 31 August 2015, Aeroporti di Roma sent a letter inviting all the Users' Associations to attend a public hearing held on 30 September 2015, on the same date publishing, as part of the consultation process, all the documentation relating to the proposed fees for 2016 on its website. On 18 September 2015, a request for clarification of the published documents was received from AssoHandlers. ADR responded to this request at the public hearing of 30 September 2015. On 30 October 2015, the company published responses to further requests for clarification from Ryanair, IBAR (together with AOC, Assaereo, IATA and the Users' Committee for Fiumicino), AssoHandlers and EasyJet on its website.

The proposed fee increases for 2016 envisage average increases of 10.4% and 6.4% for Fiumicino and Ciampino, respectively.

On 15 December 2015, at the end of the consultation process, the fees for Fiumicino and Ciampino were published on the websites of ENAC and ADR. The new fees will be in effect from 1 March 2016 until 28 February 2017.

The Regional Tax on Aircraft Noise (IRESA) and municipal surcharge

The national law, converting Law Decree 145/2013 (the so-called "Destination Italy" law, published in the Official Gazette on 21 February 2014) includes measures for airports that provide subsidies to airlines; fixes the maximum value of the Regional Tax on Aircraft Noise (IRESA) calculation parameters applicable throughout the country; establishes that the municipal surcharge introduced by article 2, paragraph 11 of Law 350 of 24 December 2003, and subsequent increases, is not payable by passengers in transit at Italian airports, if they have arrived from another Italian airport, and that the Commissioner's surcharge for Roma Capitale should continue to be applied to all passengers departing from or in transit at the airports of Rome Fiumicino and Ciampino, with the exception of transit passengers arriving from and departing for an Italian airport.

IRESA

On 15 April 2014, Lazio Regional Authority adopted a resolution (no. 196) authorising a legal challenge to be brought before the Constitutional Court, contesting the constitutional legitimacy of the "Destinazione Italia" Law Decree - and, in particular, article 13, paragraph 15 bis - as converted into Law 9 of 21 February 2014. On 9 February 2015, the Constitutional Court ruled Lazio Regional Authority's challenge to be inadmissible.

In response to the Constitutional Court sentence, Lazio Regional Authority: i) authorised ADR, whilst awaiting specific legislation to be enacted by Lazio Regional Authority, to assess, collect and pass on IRESA, applying, in the form of a payment on account, the maximum rate of €0.50 per tonne based on the maximum takeoff weight, subject to application of an eventual adjustment; ii) granted the Regional Office for Economic Planning, Budgeting and Estate and Asset Management (Direzione Regionale Programmazione Economica, Bilancio, Demanio e Patrimonio) authority to take all the necessary steps in order to sign an addendum to the Agreement between Lazio Regional Authority and ADR, whilst awaiting enactment of the relevant legislation.

Regional Law 11 was published in the Lazio Region's Official Gazette on 30 July 2015. Article 2 of the new legislation sets out "amendments to the provisions of art. 13, paragraph 15-bis of Law Decree 145 of 23 December 2013, converted with amendments into Law 9 of 21 February 2014, containing urgent measures pertaining to air transport". The new rates for IRESA introduced by the new legislation, where applicable, are effective from 22 February 2014.

In October 2015, ADR and Lazio Regional Authority agreed an Addendum to the agreement governing the application of IRESA signed by the parties on 30 January 2014.

Limitation on the handlers authorised to operate at Fiumicino airport

In December 2014, ADR was notified of five challenges lodged with Lazio Regional Administrative Court, contesting ENAC's decision of 13 October 2014 to limit the number of handlers authorised to provide the services listed in points 3, 4 and 5 (with the exclusion of 5.7) in Annex A to Legislative Decree 18/99 at Fiumicino airport. The challenges were lodged by Assaereo, Aviation Services SpA, Consulta S.r.l, Consulta SpA and IBAR. In December 2014, ADR was also notified of two additional grounds for a challenge lodged by "Fallimento Groundcare Milano Srl". Finally, on 6 February 2015, ALHA Airport filed an extraordinary challenge with the Italian President, requesting cancellation of ENAC's decision.

With two separate rulings dated 17 April 2015, Lazio Regional Administrative Court rejected the requests for injunctive relief brought by IBAR and Assaereo. No dates have so far been set for hearings on the merits of the other challenges filed. The hearing on the merits of Assaereo's challenge is scheduled for 16 June 2016.

Noise Reduction and Abatement Plan for Ciampino airport

Pursuant to the Ministerial Decree of 29 November 2000, ADR submitted its Noise Reduction and Abatement Plan for Ciampino airport to Lazio Regional Authority and the municipalities of Rome, Marino and Ciampino on 28 November 2013. In February 2014, the three municipalities expressed their opposition to the proposed plan.

On 5 May 2014, Lazio Regional Authority formally set up a cross-agency panel to look into the above Plan. In addition to Lazio Regional Authority, the panel's members include representatives from the Municipality of Rome, the municipalities of Ciampino and Marino, ENAC, ARPA Lazio (the region's environmental protection agency) and ADR.

On 12 June 2014, Regulation 598/2014 was published in the Office Journal of the European Union L173. The regulation has introduced rules and procedures for the introduction of operational restrictions aimed at containing the noise at airports in the EU, as part of a balanced approach, based on an examination (using a process developed by the International Civil Aviation Organisation) of the available measures, with a view to resolving the issue of noise pollution in keeping with the principle of cost effectiveness at the level of each individual airport.

The Regulation, which has abolished Directive 2002/30/EC, will come into effect on 13 June 2016 and will apply to European airports "with traffic in excess of 50,000 movements of civil aircraft per calendar year, based on the average of the last three calendar years prior to determining the level of noise". On 11 November 2015, ADR submitted a new Noise Reduction and Abatement Plan for Ciampino airport to Lazio Regional Authority and the municipalities of Rome, Ciampino and Marino. The new Plan was drawn up following the opposition expressed by the authorities to the Noise Reduction and Abatement Plan submitted by ADR in 2013.

Following receipt of the Plan, Lazio Regional Authority called a Services Conference with all the interested authorities (neighbouring municipalities) in order to jointly assess the Plan submitted by ADR, which must then be approved by each individual municipality.

The Conference's first sitting, to which ADR was invited, was held on 12 January 2016.

Determination of airport concession fees for the three-year period 2016-2018

The interdepartmental decree ("Decreto interdirigenziale") of 14 December 2015 issued by the State Property Office and the Ministry of Infrastructure and Transport, containing the "Determination of the airport concession fees for the three-year period 2016-2018", was published in Official Gazette no. 296 on 21 December 2015. This Decree confirms application of the same criteria defined in the previous decree (Executive Decree of 22 April 2013), determining airport concession fees for the three-year period 2013-2015, for the three-year period 2016-2018. This is based on the method for quantifying airport concession fees contained in art. 1 of the interdepartmental decree of 30 June 2003.

Airports Plan – Airports of national interest

With the issue of Presidential Decree 201 of 17 September 2015, containing "Regulations governing the identification of airports of national interest, in accordance with article 698 of the Navigation Code", the procedure provided for in the Navigation Code and the related process of planning the development and restructuring of Italy's airport system has come to an end.

For each of the 10 catchment areas indicated, the Presidential Decree identifies 38 airports of national interest (including Fiumicino and Ciampino) that are the sole responsibility of the State, assigning responsibility for airports of regional importance to the relevant regional and local authorities, as

required by the legislation governing the federal approach to the management of public property (Legislative Decree 85/2010).

12 airports of "strategic importance" were then chosen from among those of national interest, including Rome Fiumicino, which is the principal hub for the country's airport system and, together with the airports of Milan Malpensa and Venice Marco Polo, acts as an intercontinental gateway.

Procedure for approving airport infrastructure projects

Law Decree 185 of 25 November 2015 contains "Urgent measures for infrastructure projects" and was published in Official Gazette 275 of 25 November 2015 and effective from the date of publication. Article 9 (Withdrawal of unused funding and repeal of procedures for airports), c. 3 states that "Paragraph 3-bis of article 71 of Law Decree 1 of 24 January 2012, converted, with amendments, into Law 27 of 24 March 2012, is hereby repealed".

Article 71, c. 3bis had assimilated the procedures involved in carrying out infrastructure projects at Fiumicino and Ciampino airports with those relating to strategic infrastructure projects of national interest (so-called major works) and had extended application of the legislation governing consents for such works to include the airports.

With the repeal of art. 71, c. 3bis, infrastructure projects for Fiumicino and Ciampino airports no longer on a par with the above major works and are, therefore, once again subject to the pre-existing legislation governing consents.

Following the entry into effect of Law Decree 185/2015, ENAC has formally withdrawn its request for an environmental impact assessment linked to approval of the Master Plan for Ciampino in accordance with the procedure introduced by art. 71, c. 3bis, announcing that it would shortly submit a new request for the assessment according to the ordinary procedure.

On 4 December 2015, the Ministry of the Environment and Land and Sea Protection took receipt of the above withdrawal (ceasing to process the application) and ENAC's commitment to submit a new request for an assessment in accordance with the ordinary procedure.

Notice of withdrawal of the application was also given in a release published on the Ministry's website, which also stated that a new request for an environmental impact assessment would be submitted in accordance with the ordinary procedure, pursuant to art. 23 of Legislative Decree 152/2006, as amended, following the Law Decree's conversion into law.

Law 9 of 22 January 2016, converting Law Decree 185/2015 into law with amendments, published in Official Gazette 18 of 23 January 2016, has confirmed the repeal of art. 71, c. 3bis.

Increase in the municipal surcharge on air passenger duty

The Decree issued by the Ministry of Infrastructure and Transport on 29 October 2015, regarding "Definition of the increase in the municipal surcharge on air passenger duty to be transferred to INPS", was published in Official Gazette 300 of 28 December 2015.

The decree has introduced a further increase in the municipal surcharge, which amounts to €2.50 for 2016, €2.42 for 2017 and €2.34 for 2018, in application of paragraph 23 of art. 13 of Law Decree 145/2013, the so-called "Destinazione Italia" legislation, converted with amendments into Law 9/2014.

As a result of this decree, the municipal surcharge on air passenger duty paid by passengers departing from Fiumicino and Ciampino airports amounts to €10 in 2016.

The airline, EasyJet, has challenged the decree before Lazio Regional Administrative Court, requesting its cancellation subject to prior injunctive relief.

Other activities

Electronic Transaction Consultants (ETC)

Following the withholding of payment by the Miami-Dade Expressway Authority ("MDX") for the on site and office system management and maintenance services provided by ETC, and after a failed attempt at mediation as required by the service contract, on 28 November 2012 ETC petitioned the Miami Dade County Court in Florida to order MDX to settle unpaid claims amounting to over US\$30 million and damages for breach of contact.

In December 2012, MDX, in turn, notified ETC of its decision to terminate the service contract and sue for compensation for alleged damages of US\$26 million for breach of contract by ETC.

In August 2013, ETC and MDX agreed a settlement covering the services rendered by ETC during the "disentanglement" phase, which ended on 22 November 2013. MDX has duly paid the sum due.

In December 2015, the court case, during which the parties presented their respective arguments and the various experts and witnesses were heard, came to an end. Judgement is expected by the end of the first half of 2016.

Other information

As at 31 December 2015, Atlantia SpA holds 2,401,753 treasury shares, representing 0.29% of its issued capital. In March 2015, the Company sold 9,741,513 treasury shares by way of an accelerated book building process to institutional investors.

Atlantia SpA does not own, either directly or indirectly through trust companies or proxies, shares or units issued by parent companies. No transactions were carried out during the period involving shares or units issued by parent companies.

In 2015, a total of 484,535 of the Company's ordinary shares were allotted as a result of the exercise of share options and the conversion of share grants in relation to share-based incentive plans for the Group's managers.

Atlantia SpA does not own, either directly or indirectly through trust companies or proxies, shares or units issued by parent companies. No transactions were carried out during the period involving shares or units issued by parent companies.

Atlantia does not operate branch offices. Its administrative headquarters are at Via Bergamini 50, 00159 Rome.

With reference to CONSOB Ruling 2423 of 1993, regarding criminal proceedings or judicial investigations, the Group is not involved in proceedings, other than those described in note 10.7 "Significant legal and regulatory aspects", that may result in charges or potential liabilities with an impact on the consolidated financial statements.

On 17 January 2013 a meeting of the Board of Directors elected to apply the exemption provided for by article 70, paragraph 8 and article 71, paragraph 1-bis of the CONSOB Regulations for Issuers (Resolution 11971/99, as amended). The Company will therefore exercise the exemption from disclosure requirements provided for by Annex 3B of the above Regulations in respect of significant mergers, spin-offs, capital increases involving contributions in kind, acquisitions and disposals.

Events after 31 December 2015

There were no material events after the end of the year under review.

Outlook and risks or uncertainties

Despite the continuing instability of the global economy, the consolidated operating results are expected to register improvements across all the Group's areas of business in 2016.

Italian motorways

Traffic trends on the Group's Italian motorway network in recent months show signs of a recovery. In addition, Autostrada Tirrenica will contribute to the full-year results, following its consolidation by the Group from 30 September 2015, and we expect to see a reduction in the margins generated by service areas, partly as a result of the award of new sub-concessions.

Overseas motorways

Traffic on the Group's overseas motorways continues to register overall traffic growth, with the exception of Brazil, where the performance of the local economy continues to weigh. The related contribution to the Group's results is, however, subject to movements in the respective currencies.

Aeroporti di Roma

Aviation revenue is expected to rise in line with the growth in passenger traffic registered in early 2016 and with airlines' forecasts, partly reflecting the launch of new direct flights from Fiumicino. This category of revenue will also benefit from increases in airport fees. Growth in non-aviation revenue may also contribute to an improvement in results, having been hit by the damage to retail outlets in 2015 as a result of the fire that broke out at Fiumicino on 7 May.

The Group's performance for 2016 will also benefit from the tangible reduction in the cost of debt resulting from the steps taken, in 2015, to improve the capital structure.

Proposed resolutions for the Annual General Meeting of Atlantia SpA's shareholders

Dear Shareholders,

In conclusion, we invite you:

• a) to discuss and approve the Board of Directors' report on operations and the financial statements as at and for the year ended 31 December 2015, which report profit of €733,408,922.33;
• b) to appropriate the remaining €404,063,684.33 in profit for the year, after payment of the interim dividend of €329,345,238.00 (equal to €0.400 per share) in 2015, to:
  • 1) pay a final dividend of €0.480 per share, payable to holders of each of the shares with a par value of €1.00. The total value of the final dividend, based on the number of shares outstanding as at 31 December 2015 (823,382,237), is estimated at €395,223,473.76;
  • 2) take the remaining profit for the year to retained earnings. This amount, based on the number of shares outstanding as at 31 December 2015, is estimated at €8,840,210.57;
• c) to establish the dividend payment date as 25 May 2016, the ex-dividend date for coupon 28 as 23 May 2016 and the record date as 24 May 2016.

For the Board of Directors

The Chairman

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1. Report on operations

Annual Report 2015 114

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115

Consolidatedfinancialstatements as at and for the year ended 31 December2015 and notes 3

1. Bilancio consolidato As at 31 December 2015:

prospetti contabili e note illustrative

1. Report on operations

Annual Report 2015 116

CONSOLIDATED FINANCIAL STATEMENTS

Consolidated statement of financial position

			OF WHICH		OF WHICH
€000	NOTE	31 December 2015	RELATED PARTY TRANSACTIONS	31 December 2014	RELATED PARTY TRANSACTIONS
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment	7.1	231,742		191,555
Property, plant and equipment		227,862		187,398
Property, plant and equipment held under finance leases		2,951		3,271
Investment property		929		886
Intangible assets	7.2	24,844,588		25,182,029
Intangible assets deriving from concession rights		20,043,215		20,364,088
Goodwill and other intangible assets with indefinite lives		4,382,789		4,382,790
Other intangible assets		418,584		435,151
Investments	7.3	96,865		153,845
Investments accounted for at cost or fair value		62,231		72,830
Investments accounted for using the equity method		34,634		81,015
Other non-current financial assets	7.4	1,781,276		1,756,081
Non-current financial assets deriving from concession rights		766,499		704,347
Non-current financial assets deriving from government grants		255,662		215,023
Non-current term deposits		324,894		291,189
Non-current derivative assets		562		-
Other non-current financial assets		433,659	15,631	545,522	9,660
Deferred tax assets	7.5	1,574,566		1,817,627
Other non-current assets	7.6	13,623		12,782
TOTAL NON-CURRENT ASSETS		28,542,660		29,113,919
CURRENT ASSETS
Trading assets	7.7	1,468,759		1,407,260
Inventories		57,392		59,623
Contract work in progress		16,471		20,088
Trade receivables		1,394,896	39,749	1,327,549	45,598
Cash and cash equivalents	7.8	2,957,246		1,904,996
Cash		2,250,532		1,325,521
Cash equivalents		706,714		579,475
Other current financial assets	7.4	818,981		962,918
Current financial assets deriving from concessions		435,511		428,933
Current financial assets deriving from government grants		74,627		79,847
Current term deposits		221,834		250,018
Current derivative assets		36		-
Current portion of medium/long-term financial assets		68,987		66,864
Other current financial assets		17,986	545	137,256	116,667
Current tax assets	7.9	43,626	7,588	41,222	18,710
Other current assets	7.10	244,735		207,794
Non-current assets held for sale and related to discontinued	7.11	44,985		539,354
operations TOTAL CURRENT ASSETS		5,578,332		5,063,544
TOTAL ASSETS		34,120,992		34,177,463

Consolidated statement of financial position
----------------------------------------------	--	--

€000	NOTE	31 December 2015	OF WHICH RELATED PARTY TRANSACTIONS	31 December 2014	OF WHICH RELATED PARTY TRANSACTIONS
EQUITY AND LIABILITIES
EQUITY
Equity attributable to owners of the parent		6,799,634		6,518,942
Issued capital		825,784		825,784
Reserves and retained earnings		5,489,653		5,446,538
Treasury shares		-38,985		-204,968
Profit/(Loss) for the year net of interim dividends Equity attributable to non-controlling interests		523,182 1,683,182		451,588 1,744,380
Issued capital and reserves		1,561,728		1,711,494
Profit/(Loss) for the year net of interim dividends		121,454		32,886
TOTAL EQUITY 7.12		8,482,816		8,263,322
NON-CURRENT LIABILITIES
Non-current portion of provisions for construction services required by contract	7.13	3,369,243		3,783,956
Non-current provisions	7.14	1,500,793		1,426,848
Non-current provisions for employee benefits		152,437		170,010
Non-current provisions for repair and replacement obligations		1,114,906		1,029,314
Non-current provisions for refurbishment of airport infrastructure		161,266		156,807
Other non-current provisions		72,184		70,717
Non-current financial liabilities	7.15	14,044,199		13,993,903
Bond issues		10,300,558		10,330,706
Medium/long-term borrowings		3,256,238		3,142,751
Non-current derivative liabilities		461,047		514,909
Other non-current financial liabilities		26,356		5,537
Deferred tax liabilities	7.5	1,701,181		1,971,818
Other non-current liabilities	7.16	98,778		94,742
TOTAL NON-CURRENT LIABILITIES		20,714,194		21,271,267
CURRENT LIABILITIES
Trading liabilities	7.17	1,581,503		1,406,019
Liabilities deriving from contract work in progress Trade payables		3,595 1,577,908	4,070	531 1,405,488	5,639
Current portion of provisions for construction services required by contract	7.13	441,499		499,119
Current provisions	7.14	428,550		594,105
Current provisions for employee benefits		23,329		21,668
Current provisions for repair and replacement obligations Current provisions for refurbishment of airport infrastructure		217,101 101,169		329,881 159,517
Other current provisions		86,951		83,039
Current financial liabilities	7.15	1,938,634		1,168,373
Bank overdrafts		36,654		813
Short-term borrowings		245,353		244,820
Current derivative liabilities		7,036		1,034
Intercompany current account payables due to related parties		-	-	67	67
Current portion of medium/long-term financial liabilities Other current financial liabilities		1,649,176 415		920,577 1,062
Current tax liabilities	7.9	29,815		28,331
Other current liabilities	7.18	497,802	17,310	523,686	9,503
Liablities related to discontinued operations	7.11	6,179		423,241
TOTAL CURRENT LIABILITIES		4,923,982		4,642,874
TOTAL LIABILITIES		25,638,176		25,914,141
TOTAL EQUITY AND LIABILITIES		34,120,992		34,177,463

Consolidated income statement

€000	NOTE	2015	OF WHICH RELATED PARTY TRANSACTIONS	2014	OF WHICH RELATED PARTY TRANSACTIONS
REVENUE
Toll revenue	8.1	3,835,954		3,677,679
Aviation revenue	8.2	565,312		519,979
Revenue from construction services	8.3	722,989	2,487	563,971	29,215
Contract revenue	8.4	106,467		69,319
Other operating income	8.5	789,783	81,926	782,927	92,810
TOTAL REVENUE		6,020,505		5,613,875
COSTS Raw and consumable materials	8.6	-378,510		-341,955
Service costs	8.7	-1,588,584	-1,842	-1,229,454	-5,973
Gain/(Loss) on sale of elements of property, plant and equipment		290		- 3
Staff costs	8.8	-862,070	-38,328	-786,211	-24,480
Other operating costs	8.9	-601,213		-561,650
Concession fees		-477,022		-462,254
Lease expense		-16,466		-14,576
Other		-107,725		-84,820
Operating change in provisions	8.10	76,086		-263,941
Provisions/ (Uses of provisions) for repair and replacement obligations for motorway infrastructure		36,635		-216,196
Provisions/ (Uses of provisions) for refurbishment of airport infrastructure		66,846		-19,231
Provisions		-27,395		-28,514
Use of provisions for construction services required by contract	8.11	502,495		406,613
Amortisation and depreciation		-916,892		-875,964
Depreciation of property, plant and equipment	7.1	-51,334		-50,929
Amortisation of intangible assets deriving from concession rights	7.2	-800,887		-762,313
Amortisation of other intangible assets	7.2	-64,671		-62,722
(Impairment losses)/Reversals of impairment losses	8.12	-11,181		-10,701
TOTAL COSTS		-3,779,579		-3,663,266
OPERATING PROFIT/(LOSS)		2,240,926		1,950,609
Financial income		339,870		328,351
Financial income accounted for as an increase in financial assets deriving from concession rights and government grants		63,437		56,241
Dividends received from investees		3,497		101
Other financial income		272,936	9,869	272,009	9,616
Financial expenses		-1,145,343		-1,025,594
Financial expenses from discounting of provisions for construction services required by contract and other provisions		-55,521		-116,269
Other financial expenses		-1,089,822		-909,325
of which non-recurring		8.18 -233,509	-
Foreign exchange gains/(losses)		20,519		17,336
FINANCIAL INCOME/(EXPENSES)	8.13	-784,954		-679,907
Share of (profit)/loss of investees accounted for using the equity method	8.14	-17,658		-9,157
PROFIT/(LOSS) BEFORE TAX FROM CONTINUING OPERATIONS		1,438,314		1,261,545
Income tax (expense)/benefit Current tax expense	8.15	-470,962 -460,261		-552,594 -461,367
Differences on tax expense for previous years		10,209		474
Deferred tax income and expense		-20,910		-91,701
PROFIT/(LOSS) FROM CONTINUING OPERATIONS		967,352		708,951
Profit/(Loss) from discontinued operations	8.16	6,983		64,537
PROFIT FOR THE YEAR		974,335		773,488
of which:
Profit attributable to owners of the parent		852,527		740,252
Profit attributable to non-controlling interests		121,808		33,236
€		2015		2014
Basic earnings per share attributable to owners of the parent of which:	8.17	1.04		0.91
- continuing operations		1.03		0.83
- discontinued operations		0.01		0.08
Diluted earnings per share attributable to owners of the parent	8.17	1.04		0.91
of which:
- continuing operations - discontinued operations		1.03 0.01		0.83 0.08

Consolidated statement of comprehensive income

€000	Note	2015	2014
Profit for the year (A)		974,335	773,488
Fair value gains/(losses) on cash flow hedges		-1,029	-83,751
Gains/(losses) from translation of assets and liabilities of consolidated companies denominated in functional currencies other than the euro		-314,426	-29,231
Gains/(Losses) from translation of investments accounted for using the equity method denominated in functional currencies other than the euro		-6,077	1,806
Other comprehensive income/(loss) for the year reclassifiable to profit or loss, after related taxation (B)		-321,532	-111,176
Gains/(losses) from actuarial valuations of provisions for employee benefits		4,421	-13,283
Other comprehensive income for the year not reclassifiable to profit or loss, after related taxation (C)		4,421	-13,283
Reclassifications of other components of comprehensive income to profit or loss for the year (D)		51,858	12,344
Total other comprehensive income/(loss) for the year, after related taxation (E=B+C+D)		-265,253	-112,115
Of which attributable to discontinued operations		5,618	12,344
Comprehensive income for the year (A+E)	7.12	709,082	661,373
Of which attributable to owners of the parent		740,651	638,155
Of which attributable to non-controlling interests		-31,569	23,218

					EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT
€000	Issued capital	Cash flow hedge reserve	Net investment hedge reserve	consolidated companies Reserve for translation functional currencies translation of assets other than the euro and liabilities of denominated in differences on	accounted for using the Reserve for translation functional currencies other than the euro denominated in of investments equity method	Other reserves and retained earnings	Treasury shares	Profit/(Loss) for year	TOTAL	ATTRIBUTABLE TO CONTROLLING INTERESTS EQUITY NON-	ATTRIBUTABLE TO OWNERS OF THE TOTAL EQUITY CONTROLLING AND TO NON- INTERESTS PARENT
Balance as at 31 December 2013	825,784	-1,244	-36,400	-197,758	-5,093	5,756,219	-208,368	348,227	6,481,367	1,728,300	8,209,667
Comprehensive income for the year		-74,439 -	-	-15,983	1,394	-13,069	-	740,252	638,155	23,218	661,373
Owner transactions and other changes Atlantia SpA's final dividend
(€0.391 per share)	-		- -	-	-	-	-	-317,862	-317,862	-	-317,862
Transfer of profit/(loss) for previous year to retained earnings	-		- -	-	-	30,365	-	-30,365	-	-	-
Atlantia SpA's interim dividend (€0.355 per share)	-		- -	-	-	-	-	-288,664	-288,664	-	-288,664
Dividends paid by other Group companies to non-controlling shareholders	-		- -	-	-	-	-	-	-	-8,211	-8,211
Share-based incentive plans	-		- -	-	-	4,562	3,400	-	7,962	86	8,048
Changes in scope of consolidation and other minor changes and reclassifications	-		- -	-	-	-2,016	-	-	-2,016	987	-1,029
Balance as at 31 December 2014	825,784	-75,683	-36,400	-213,741	-3,699	5,776,061	-204,968	451,588	6,518,942	1,744,380	8,263,322
Comprehensive income for the year		46,899 -	-	-160,497	-2,642	4,364	-	852,527	740,651	-31,569	709,082
Owner transactions and other changes
Atlantia SpA's final dividend (€0.391 per share)	-		- -	-	-	-	-	-366,309	-366,309	-	-366,309
Transfer of profit/(loss) for previous year to retained earnings	-		- -	-	-	85,279	-	-85,279	-	-11	-11
Atlantia SpA's interim dividend (€0.355 per share)	-		- -	-	-	-	-	-329,345	-329,345	-	-329,345
Dividends paid by other Group companies to non-controlling shareholders	-		- -	-	-	-	-	-	-	-29,044	-29,044
Sale of treasury shares	-		- -	-	-	69,832	158,120	-	227,952	-	227,952
Share-based incentive plans	-		- -	-	-	-2,797	7,863	-	5,066	49	5,115
Changes in scope of consolidation and other minor changes and reclassifications	-		- 5	73	-56	2,655	-	-	2,677	-623	2,054
Balance as at 31 December 2015	825,784	-28,779	-36,400	-374,165	-6,397	5,935,394	-38,985	523,182	6,799,634	1,683,182	8,482,816

Consolidated statement of cash flows

€000	NOTE	2015	OF WHICH RELATED PARTY TRANSACTIONS	2014	OF WHICH RELATED PARTY TRANSACTIONS
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES
Profit for the year		974,335		773,488
Adjusted by:
Amortisation and depreciation		916,892		883,176
Operating change in provisions, after use of provisions for refurbishment of
airport infrastructure Financial expenses from discounting of provisions for construction services		84,830		357,159
required by contract and other provisions		55,521		116,269
Impairment losses/(Reversal of impairment losses) on financial assets and investments accounted for at cost or fair value		36,249		44,108
Share of (profit)/loss of investees accounted for using the equity method	8.14	17,658		9,157
Impairment losses/(Reversal of impairment losses) and adjustments of non-current assets		1,347		-9,153
(Gain)/Loss on sale of non-current assets		379		-70,846
Net change in deferred tax (assets)/liabilities through profit or loss		20,910		85,133
Other non-cash costs (income)		-3,019	-2,487	-109,167	-29,215
Change in working capital and other changes		105,718	13,572	-256,016	-2,028
Net cash generated from/(used in) operating activities [a]	9.1	2,210,820		1,823,308
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES
Investment in assets held under concession	7.2	-1,352,095		-1,003,672
Government grants related to assets held under concession		56,021		39,875
Increase in financial assets deriving from concession rights (related to capital expenditure)		95,120		63,465
Purchases of property, plant and equipment	7.1	-95,525		-57,008
Purchases of intangible assets	7.2	-39,655		-38,719
Purchase of investments		-17,746		-32,241
Investment in consolidated companies, net of cash and cash equivalents acquired		-72,193		-701
Proceeds from sales of property, plant and equipment, intangible assets and unconsolidated investments		2,731		8,925
Proceeds from sales of consolidated investments net of cash and cash equivalents transferred		-		83,342
Net change in other non-current assets and other changes generated by investing activities		-18,266		40,754
Net change in current and non-current financial assets		101,083	-9,856	179,806	-1,417
Net cash generated from/(used in) investing activities [b]	9.1	-1,340,525		-716,174
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES
Dividends paid		-724,671		-903,792
Contributions from non-controlling shareholders		24		720
Proceeds from sale of treasury shares and exercise of rights under share-based incentive plans		231,221		3,096
New non-controlling shareholder loans		-		2,880
Issuance of bonds	7.15	2,758,388		227,683
Increase in medium/long term borrowings (excluding finance lease liabilities)		260,972		397,940
Increase in finance lease liabilities		-		3,935
Bond redemptions	7.15	-147,902		-2,514,241
Buyback of bonds issued by Atlantia and purchase of notes issued by Romulus Finance		-1,637,932		-
Repayments of medium/long term borrowings (excluding finance lease liabilities)		-358,360		-821,218
Repayments of non-controlling shareholder loans		-		-6,034
Payment of finance lease liabilities		-2,730		-6,688
Net change in other current and non-current financial liabilities		-206,432		65,013
Net cash generated from/(used in) financing activities [c]	9.1	172,578		-3,550,706
Net effect of foreign exchange rate movements on net cash and cash equivalents [d]		-36,008		2,841
Increase/(Decrease) in cash and cash equivalents [a+b+c+d]	9.1	1,006,865		-2,440,731
NET CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR		1,952,748		4,393,479
NET CASH AND CASH EQUIVALENTS AT END OF YEAR		2,959,613		1,952,748

Additional information on the consolidated statement of cash flows

€000	NOTE	2015	2014
Income taxes paid		445,702	441,620
Interest and other financial income collected		148,995	108,723
Interest and other financial expenses paid		867,272	801,597
Dividends received	8.13	3,497	101
Foreign exchange gains collected		168	171
Foreign exchange losses incurred		204	414

Reconciliation of net cash and cash equivalents

€000	NOTE	2015	2014
NET CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR		1,952,748	4,393,479
Cash and cash equivalents	7.8	1,904,996	4,414,215
Bank overdrafts repayable on demand	7.15	-813	-7,228
Intercompany current account payables due to related parties		-67	-13,508
Cash and cash equivalents related to discontinued operations	7.11	48,632	-
NET CASH AND CASH EQUIVALENTS AT END OF YEAR		2,959,613	1,952,748
Cash and cash equivalents	7.8	2,957,246	1,904,996
Bank overdrafts repayable on demand	7.15	-36,654	-813
Intercompany current account payables due to related parties		-	-67
Cash and cash equivalents related to discontinued operations	7.11	39,021	48,632

NOTES

1. INTRODUCTION

The core business of the Atlantia Group (the "Group") is the management of concessions granted by the relevant authorities. Under the related concession arrangements, the Group's operators are responsible for the construction, management, improvement and serviceability of motorway and airport assets in Italy and abroad. Further information on the Group's concession arrangements is provided in note 4.

The Parent Company is Atlantia SpA ("Atlantia" or the "Company" or the "Parent Company"), a holding company listed on the screen-based trading system (Mercato Telematico Azionario) operated by Borsa Italiana SpA. The Company's registered office is in Rome, at Via Nibby, 20. The Company does not have branch offices. The duration of the Company is currently until 31 December 2050.

At the date of preparation of these consolidated financial statements, Sintonia SpA is the shareholder that holds a relative majority of the issued capital of Atlantia SpA. Neither Sintonia SpA nor its direct parent, Edizione Srl, exercise management and coordination of Atlantia SpA.

The consolidated financial statements as at and for the year ended 31 December 2015 were approved by the Board of Directors of Atlantia at its meeting of 4 March 2016.

2. BASIS OF PREPARATION

The consolidated financial statements as at and for the year ended 31 December 2015 are based on the assumption that the Parent and consolidated companies are going concerns. They have been prepared in compliance with articles 2 and 3 of Legislative Decree 38/2005 and International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board and endorsed by the European Commission, as in force at that date. These standards reflect the interpretations issued by the International Financial Reporting Interpretations Committee (IFRIC), in addition to previous International Accounting Standards (IAS) and interpretations issued by the Standard Interpretations Committee (SIC) and still in force. For the sake of simplicity, all the above standards and interpretations are hereinafter referred to as "IFRS". Moreover, the measures introduced by the CONSOB, in application of paragraph 3 of article 9 of Legislative Decree 38/2005, relating to the preparation of financial statements, have also been taken into account.

The consolidated financial statements consist of the statement of financial position, the income statement, the statement of comprehensive income, the statement of changes in equity, the statement of cash flows and these notes, in application of IAS 1 "Presentation of financial statements" and, in general, the historic cost convention, with the exception of those items that are required by IFRS to be recognised at fair value, as explained in the accounting policies for the relevant items described in note 3. The statement of financial position is based on the format that separately discloses current and non-current assets and liabilities. The income statement is classified by nature of expense. The statement of cash flows has been prepared in application of the indirect method.

IFRS have been applied in accordance with the indications provided in the "Conceptual Framework for Financial Reporting", and no events have occurred that would require exemptions pursuant to paragraph 19 of IAS 1.

CONSOB Resolution 15519 of 27 July 2006 requires that, in addition to the specific requirements of IAS 1 and other IFRS, financial statements must, where material, include separate sub-items providing (i) disclosure of amounts deriving from related party transactions; and, with regard to the income statement, (ii) separate disclosure of income and expenses deriving from events and transactions that are non-recurring in nature, or transactions or events that do not occur on a frequent basis in the normal course of business.

A number of non-recurring transactions and events occurred in 2015, as described in notes 8.18 and 8.19. Otherwise, no atypical or unusual transactions, having a material impact on the Group's income statement and statement of financial position, were entered into during the period, either with third or related parties. The

consolidated financial statements therefore show the principal amounts relating to the related party and nonrecurring transactions that took place during the reporting period.

All amounts are shown in thousands of euros, unless otherwise stated. The euro is both the functional currency of the Parent Company and its principal subsidiaries and the presentation currency for these consolidated financial statements.

Each component of the consolidated financial statements is compared with the corresponding amount for the comparative reporting period. To this end, it should be noted that, to improve presentation, certain amounts in the consolidated statement of cash flows for 2014 have been reclassified with respect to the information published in the consolidated financial statements as at and for the year ended 31 December 2014.

3. ACCOUNTING STANDARDS AND POLICIES APPLIED

A description follows of the more important accounting standards and policies used in the consolidated financial statements as at and for the year ended 31 December 2015. These accounting standards and policies are consistent with those applied in preparation of the consolidated financial statements for the previous year, as no new standards, interpretations, or amendments to existing standards became effective in 2015 having a material effect on the Atlantia Group's consolidated financial statements.

It should be noted that the following new standards and interpretations and/or amendments to existing standards and interpretations were applicable from 1 January 2015:

• a) IFRS 3 Business Combinations. The amendment to the standard clarifies that a contingent consideration classified as an asset or a liability must be measured at fair value at each reporting date, with the effects to be recognised in profit or loss, regardless of whether the contingent consideration is a financial instrument or a non-financial asset or liability. In addition, it clarifies that the standard does not apply to all joint ventures;
• b) IFRS 13 Fair Value Measurement. The amendment clarifies and explicitly confirms the option of accounting for short-term trade receivables and payables on an undiscounted basis, should the effect of discounting not be material;
• c) IFRIC 21 Levies. The interpretation applies to all levies imposed by the government that do not fall within the scope of other standards (for example, IAS 12 – Income Taxes). The interpretation clarifies that an entity must only recognise a liability for a levy when the activity that triggers payment, as identified by the relevant legislation, occurs. In addition, a liability for a levy may only be accrued progressively if the activity that triggers payment occurs over a period of time. For a levy that is triggered upon reaching a minimum threshold, the liability must be estimated and recognised before the threshold is reached, when the threshold is expected to be exceeded in the assessment period.

Property, plant and equipment

Property, plant and equipment is stated at cost. Cost includes expenditure that is directly attributable to the acquisition of the items and financial expenses incurred during construction of the asset. Assets acquired through business combinations prior to 1 January 2004 (the IFRS transition date) are stated at previous amounts, as determined under Italian GAAP for those business combinations and representing deemed cost. The cost of assets with finite useful lives is systematically depreciated on a straight-line basis applying rates that represent the expected useful life of the asset. Each component of an asset with a cost that is significant in relation to the total cost of the item, and that has a different useful life, is accounted for separately. Land, even if undeveloped or annexed to residential and industrial buildings, is not depreciated as it has an indefinite useful life.

Investment property, which is held to earn rentals or for capital appreciation, or both, is recognised at cost measured in the same manner as property, plant and equipment. The relevant fair value of such assets has also been disclosed.

The bands of annual rates of depreciation used in 2015 are shown in the table below by asset class:

Property, plant and equipment	Rate of depreciation
Buildings	2.5% - 33.33%
Plant and machinery	10% - 33%
Industrial and business equipment	4.5% - 40%
Other assets	8.6% - 33.33%

Assets acquired under finance leases are initially accounted for as property, plant and equipment, and the underlying liability recorded in the statement of financial position, at an amount equal to the relevant fair value or, if lower, the present value of the minimum payments due under the contract. Lease payments are apportioned between the interest element, which is charged to the income statement as incurred, and the capital element, which is deducted from the financial liability.

Property, plant and equipment is tested for impairment, as described below in the relevant note, whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

Property, plant and equipment is derecognised on disposal. Any gains or losses (determined as the difference between disposal proceeds, less costs to sell, and the carrying amount of the asset) are recognised in the income statement for the year in which the asset is sold.

Intangible assets

Intangible assets are identifiable assets without physical substance, controlled by the entity and from which future economic benefits are expected to flow, and purchased goodwill. Identifiable intangible assets are those purchased assets that, unlike goodwill, can be separately distinguished. This condition is normally met when: (i) the intangible asset arises from a legal or contractual right, or (ii) the asset is separable, meaning that it may be sold, transferred, licensed or exchanged, either individually or as an integral part of other assets. The asset is controlled by the entity if the entity has the ability to obtain future economic benefits from the asset and can limit access to it by others.

Internally developed assets are recognised as assets to the extent that: (i) the cost of the asset can be measured reliably; (ii) the entity has the intention, the available financial resources and the technical expertise to complete the asset and either use or sell it; (iii) the entity is able to demonstrate that the asset is capable of generating future economic benefits.

Intangible assets are stated at cost which, apart from concession rights, is determined in the same manner as the cost of property, plant and equipment. The cost of concession rights is recovered in the form of payments received from road users and may include one or more of the following:

• a) the fair value of construction services and/or improvements carried out on behalf of the Grantor (measured as described in the note on "Construction contracts and services in progress") less financerelated amounts, consisting of (i) the amount funded by government grants, (ii) the amount that will be unconditionally paid by replacement operators on termination of the concession (so-called "takeover rights"), and/or (iii) any minimum level of tolls or revenue guaranteed by the Grantor. In particular, the following give rise to intangible assets deriving from concession rights:
  • 1) rights received as consideration for specific obligations to provide construction services for road widening and improvement for which the operator does not receive additional economic benefits. These rights are initially recognised at the fair value of the construction services to be provided in the future (equal to their present value, less the portion covered by grants, and excluding any financial expenses that may be incurred during provision of the services), with a contra entry of an equal amount in "Provisions for construction services required by contract", accounted for in liabilities in the statement of financial position. In addition to the impact of amortisation, the initial value of the rights changes over time as a result of periodic reassessment of the fair value of the part of the construction services still to be rendered at the end of the reporting period (equal to their present value, less the portion covered by grants, and excluding any financial expenses that may be incurred during provision of the services);
  • 2) rights received as consideration for construction and/or upgrade services rendered for which the operator receives additional economic benefits in the form of specific toll increases and/or

significant increases in the expected number of users as a result of expansion/upgrade of the infrastructure;

• 3) rights to infrastructure constructed and financed by service area concession holders which will revert free of charge to Group companies on expiry of the related concessions;
• b) rights acquired from third parties, to the extent costs were incurred to acquire concessions from the Grantor or from third parties (the latter relating to the acquisition of companies that hold a concession).

Concession rights, on the other hand, are amortised over the concession term in a pattern that reflects the estimated manner in which the economic benefits embodied in the right are consumed. Amortisation rates are, consequently, determined taking, among other things, any significant changes in traffic volumes during the concession term into account. Amortisation is charged from the date on which economic benefits begin to accrue.

In contrast, amortisation of other intangible assets with finite useful lives begins when the asset is ready for use, in relation to their residual useful lives.

The bands of annual rates of amortisation used in 2015 are shown in the table below by asset class:

Intangible assets	Rate of amortisation
Concession rights	On the commencement of generation of economic benefits for the entity, based on the residual term of the concession and/or traffic projections.
Development costs	4.8% - 33.33%
Industrial patents and intellectual property rights	5% - 55%
Licences and similar rights	7.7% - 33.33%
Other assets	3.3% - 33.33%

Intangible assets are tested for impairment, as described below in the note on "Impairment of assets and reversals (impairment testing)", whenever events or changes in circumstances indicate that the carrying amount may not be fully recoverable.

Gains and losses on the disposal of intangible assets are determined as the difference between the disposal proceeds, less costs to sell, and the carrying amount of the asset and then recognised in profit or loss on disposal.

Goodwill

Acquisitions of companies or business units are accounting for using the acquisition method, as required by IFRS 3. For this purpose, the identifiable assets acquired and liabilities assumed through business combinations are measured at their respective fair values at the acquisition date. The cost of an acquisition is measured as the fair value, at the date of exchange, of the assets acquired, liabilities assumed and any equity instruments issued by the Group in exchange for control.

Goodwill is initially measured as the positive difference between 1) the acquisition cost, plus both the fair value at the acquisition date of any previous non-controlling interests held in the acquiree and the value of noncontrolling interests held by third parties in the acquiree (at fair value or prorated to the current net asset value of the acquiree), and 2) the fair value of net assets.

The goodwill, as measured on the date of acquisition, is allocated to each of the substantially independent cash generating units or groups of cash generating units which are expected to benefit from the synergies of the business combination.

A negative difference between the cost of the acquisition, as increased by the above components, and the Group's share in the fair value of net assets is recognised as income in profit or loss in the year of acquisition. Goodwill on acquisitions of non-controlling interests is included in the carrying amount of the relevant investments.

After initial recognition, goodwill is no longer amortised and is carried at cost less any accumulated impairment losses, determined as described in the note on impairment testing.

IFRS 3 was not applied retrospectively to acquisitions prior to 1 January 2004, the Parent Company's IFRS transition date, as noted above. As a result, the carrying amount of goodwill on these acquisitions is that

determined under Italian GAAP, which is the net carrying amount at this date, subject to impairment testing and the recognition of any impairment losses.

Investments

Investments in unconsolidated subsidiaries and other companies, which qualify as available-for-sale financial instruments as defined by IAS 39, are initially accounted for at cost at the settlement date, in that this represents fair value, plus any directly attributable transaction costs.

After initial recognition, these investments are measured at fair value, to the extent reliably determinable, through the statement of comprehensive income and hence in a specific equity reserve. On realisation or recognition of an impairment loss in the income statement, the accumulated gains and losses in that reserve are reclassified to the income statement.

Impairment losses, identified as described below in the note on "Impairment of assets and reversals (impairment testing)", are reversed to other comprehensive income in the event the circumstances giving rise to the impairment cease to exist.

When fair value cannot be reliably determined, investments, classified as available-for-sale, are measured at cost less any impairment losses. In this case impairment losses may not be reversed.

Investments in associates and joint ventures are accounted for using the equity method. The Group's share of post-acquisition profits or losses is recognised in the income statement for the accounting period to which they relate, with the exception of the effects deriving from other changes in the equity of the investee, excluding any owner transactions, when the Group's share is recognised directly in comprehensive income attributable to owners of the parent.

Provisions are made to cover any losses of an associate or joint venture exceeding the carrying amount of the investment, to the extent that the investor is required to comply with actual or constructive obligations to cover such losses.

Construction contracts and services in progress

Construction contracts are accounted for on the basis of a contract's revenue and costs that can be reliably estimated with reference to the stage of completion of the contract, in accordance with the percentage of completion method, as determined by a survey of the works carried out or based on the ratio of costs incurred to total estimated costs. Contract revenue is allocated to the individual reporting periods in proportion to the stage of contract completion. Any positive or negative difference between contract revenue and any advance payments received is recognised in assets or liabilities, taking account of any impairments, in order to reflect the risks linked to the inability to recover the value of work performed on behalf of customers.

In addition to contract payments, contract revenue includes variations, price reviews and any additional payments to the extent that they can be reliably determined.

Expected losses are recognised immediately in profit or loss, regardless of the stage of contract completion. Revenue from construction and/or upgrade services provided to the Grantor and relating to the concessions held by certain Group companies, are recognised on a percentage of completion basis. Construction and/or upgrade service revenues, representing the consideration for services provided, are measured at fair value, calculated on the basis of the total costs incurred (consisting primarily of the cost of materials and external services, relevant employee benefits and financial expenses, the latter only in the case of construction and/or upgrade services for which the operator receives additional economic benefits), plus any arm's length profits realised on construction services provided by Group entities (in that they represent the fair value of the services). The double entry of construction and /or upgrade service revenue is represented by financial assets deriving from concession rights and/or grants, or by intangible assets deriving from concession rights, as explained in the relevant note.

Inventories

Inventories, primarily consisting of stocks and spare parts used in the maintenance and assembly of plant, are measured at the lower of purchase or conversion costs and net realisable value obtained on their sale in the ordinary course of business. The purchase cost is determined using the weighted average cost method.

Receivables and payables

Receivables are initially recognised at fair value and subsequently measured at amortised cost, using the effective interest method, less any allowance for bad debts. The amount of the allowance is based on the present value of expected future cash flows. These cash flows take account of expected collection times, estimated realisable value, any guarantees received, and the expected costs of recovering amounts due. Impairment losses are reversed in future periods if the circumstances that resulted in the loss no longer exist. In this case, the reversal is accounted for in the income statement and may not in any event exceed the amortised cost of the receivable had no previous impairment losses been recognised.

Payables are initially recognised at cost, which corresponds to the fair value of the liability, less any directly attributable transaction costs. After initial recognition, payables are recognised at amortised cost, using the original effective interest method.

Trade receivables and payables, which are subject to normal commercial terms and conditions, are not discounted to present value.

Cash and cash equivalents

Cash and cash equivalents is recognised at face value. They include highly liquid demand deposits or very short-term instruments subject to an insignificant risk of changes in value.

Derivative financial instruments

All derivative financial instruments are recognised at fair value at the end of the year.

As required by IAS 39, derivatives are designated as hedging instruments when the relationship between the derivative and the hedged item is formally documented and the periodically assessed effectiveness of the hedge is high and ranges between 80% and 125%.

Changes in the fair value of cash flow hedges hedging assets and liabilities (including those that are pending and highly likely to arise in the future) are recognised in the statement of comprehensive income. The gain or loss relating to the ineffective portion is recognised in profit or loss.

Changes in the value of fair value hedged assets and liabilities are recognised in profit or loss for the period. Analogously, the hedged assets and liabilities are restated at fair value through profit or loss.

Since derivative contracts deemed net investment hedges in accordance with IAS 39, because they were concluded to hedge the risk of unfavourable movements in the exchange rates used to translate net investments in foreign operations, are treated as cash flow hedges, the effective portion of fair value gains or losses on the derivatives is recognised in other comprehensive income, thus offsetting changes in the foreign currency translation reserve for net investments in foreign operations. Accumulated fair value gains and losses, recognised in the net investment hedge reserve, are reclassified from equity to profit or loss on the disposal or partial disposal of the foreign operation.

Changes in the fair value of derivative instruments that do not qualify for hedge accounting under IAS 39 are recognised in profit or loss.

Other financial assets and liabilities

Other financial assets that Group companies intend and are able to hold to maturity and other financial liabilities are recognised at the fair value of the purchase consideration at the settlement date, with assets being increased and liabilities being reduced by transaction costs directly attributable to the purchase of the assets or issuance of the liabilities. After initial recognition, financial assets and liabilities are measured at amortised cost using the original effective interest method.

Financial assets and liabilities are derecognised when, following their sale or settlement, the Group is no longer involved in their management and has transferred all risks and rewards of ownership.

Financial assets held for trading are recognised and measured at fair value through profit or loss. Other categories of financial asset classified as available-for-sale financial instruments are recognised and measured at fair value through comprehensive income and, consequently, in a specific equity reserve. The financial instruments in these categories have, to date, never been reclassified.

Financial assets also include the following considerations for assets held under concession:

a) "takeover rights", being the amount that will be unconditionally paid by an incoming operator on termination of the concession;

• b) the present value of minimum toll revenue guaranteed by the Grantor, representing an unconditional right to receive cash payments for construction services performed, regardless of the extent to which the public uses the service;
• c) amounts due from public entities as grants or similar compensation relating to the construction of infrastructure (construction and/or upgrade services).

Fair value measurement and the fair value hierarchy

For all transactions or balances (financial or non-financial) for which an accounting standard requires or permits fair value measurement and which falls within the application of IFRS 13, the Group applies the following criteria:

• a) identification of the unit of account, defined as the level at which an asset or a liability is aggregated or disaggregated in an IFRS for recognition purposes;
• b) identification of the principal market or, in the absence of such a market, the most advantageous market in which the particular asset or liability to be measured could be traded; unless otherwise indicated, it is assumed that the market currently used coincides with the principal market or, in the absence of such a market, the most advantageous market;
• c) definition for non-financial assets of the highest and best use of the asset; unless otherwise indicated, highest and best use is the same as the asset's current use;
• d) definition of valuation techniques that are appropriate for the measurement of fair value, maximising the use of relevant observable inputs that market participants would use when determining the price of an asset or liability;
• e) determination of the fair value of assets, based on the price that would be received to sell an asset, and of liabilities and equity instruments, based on the price paid to transfer a liability in an orderly transaction between market participants at the measurement date;
• f) inclusion of non-performance risk in the measurement of assets and liabilities and above all, in the case of financial instruments, determination of a valuation adjustment when measuring fair value to include, in addition to counterparty risk (CVA – credit valuation adjustment), the own credit risk (DVA - debit valuation adjustment).

Based on the inputs used for fair value measurement, a fair value hierarchy for classifying the assets and liabilities measured at fair value, or the fair value of which is disclosed in the financial statements, has been identified:

• a) level 1: includes quoted prices in active markets for identical assets or liabilities;
• b) level 2: includes inputs other than quoted prices included within level 1 that are observable, such as the following: i) quoted prices for similar assets or liabilities in active markets; ii) quoted prices for similar or identical assets or liabilities in markets that are not active; iii) other observable inputs (interest rate and yield curves, implied volatilities and credit spreads);
• c) level 3: unobservable inputs used to the extent that observable data is not available. The unobservable inputs used for fair value measurement should reflect the assumptions that market participants would use when pricing the asset or liability being measured.

Definitions of the fair value hierarchy level in which individual financial instruments measured at fair value have been classified, or for which the fair value is disclosed in the financial statements, are provided in the notes to individual components of the financial statements.

There are no assets or liabilities classifiable in level 3 of the fair value hierarchy.

No transfers between the various levels of the fair value hierarchy took place during the year.

The fair value of derivative financial instruments is based on expected cash flows that are discounted at rates derived from the market yield curve at the measurement date and the curve for listed credit default swaps entered into by the counterparty and Group companies, to include the non-performance risk explicitly provided for by IFRS 13.

In the case of medium/long-term financial instruments, other than derivatives, where market prices are not available, the fair value is determined by discounting expected cash flows, using the market yield curve at the measurement date and taking into account counterparty risk in the case of financial assets and own credit risk in the case of financial liabilities.

Provisions for construction services required by contract and other provisions

"Provisions for construction services required by contract" relate to specific contractual obligations having regard to motorway expansion and upgrading for which the operator receives no additional economic benefit. Since the performance of such obligations is treated as part of the consideration for the concession, an amount equal to the fair value of future construction services (equal to the present value of the services, less the portion covered by grants, and excluding any financial expenses that may be incurred during provision of the services) is initially recognised. The double entry is concession rights for works without additional economic benefits. The fair value of the residual liability for future construction services (equal to their present value, less the portion covered by grants, and excluding any financial expenses that may be incurred during provision of the services) is periodically reassessed and changes to the measurement of the liabilities (such as, for example, changes to the estimated cash outflows necessary to discharge the obligation, a change in the discount rate or a change in the construction period) are recognised as a matching increase or reduction in the corresponding intangible asset. Any increase in provisions to reflect the time value of money is recognised as a financial expense.

Other provisions are made when: (i) the Group has a present (actual or constructive) obligation as a result of a past event; (ii) it is probable that an outflow of resources will be required to settle the obligation; and (iii) the related amount can be reliably estimated.

Provisions are measured on the basis of management's best estimate of the expenditure required to settle the present obligation at the end of the reporting period. If the discount to present value is material, provisions are determined by discounting future expected cash flows to their present value at a rate that reflects the market view of the time value of money. Subsequent to the computation of present value, the increase in provisions over time is recognised as a financial expense.

"Provisions for the repair and replacement of motorway infrastructure" cover the liability represented by the contractual obligation to repair and replace motorway infrastructure, as required by the concession arrangements entered into by the Group's motorway operators and the respective grantors. These provisions are calculated on the basis of the usage and wear and tear of motorways at the end of the reporting period, taking into account, if material, the time value of money.

In accordance with existing contractual obligations, "Provisions for the refurbishment of airport infrastructure" reflect, at the end of the reporting period, provisions covering the cost of cyclical maintenance works and the refurbishment of parts of the airport infrastructure for which specific increases in charges are not envisaged. The provisions are calculated on the basis of the estimated costs to be incurred in order to carry out the maintenance or refurbishment works, taking account, if material, of the time value of money.

Employee benefits

Short-term employee benefits, provided during the period of employment, are accounted for as the accrued liability at the end of the reporting period.

Liabilities deriving from medium/long-term employee benefits are recognised in the vesting period, less any plan assets and advance payments made. They are determined on the basis of actuarial assumptions and, if material, recognised on an accruals basis in line with the period of service necessary to obtain the benefit. Post-employment benefits in the form of defined benefit plans are recognised at the amount accrued at the end of the reporting period.

Post-employment benefits in the form of defined benefit plans are recognised in the vesting period, less any plan assets and advance payments made. Such defined benefit plans primarily regard the obligation as determined on the basis of actuarial assumptions and recognised on an accruals basis in line with the period of service necessary to obtain the benefit. The obligation is calculated by independent actuaries. Any resulting actuarial gain or loss is recognised in full in other comprehensive income in the period to which it relates.

Non-current assets held for sale, assets and liabilities included in disposal groups and/or related to discontinued operations

Where the carrying amount of non-current assets held for sale, or of assets and liabilities included in disposal groups and/or related to discontinued operations is to be recovered primarily through sale rather than through continued use, these items are presented separately in the statement of financial position.

Immediately prior to being classified as held for sale, each asset and liability is recognised under the specific IFRS applicable and subsequently accounted for at the lower of the carrying amount and fair value. Any impairment losses are recognised immediately in the income statement.

Disposal groups or discontinuing operations are recognised in profit or loss as discontinued operations provided the following conditions are met:

• a) they represent a major line of business or geographical area of operation;
• b) they are part of a single coordinated plan to dispose of a separate major line of business or geographical area of operation;
• c) they are subsidiaries acquired exclusively with a view to resale.

After tax gains and losses resulting from the management or sale of such operations are recognised as one amount in profit or loss with comparatives.

Revenue

Revenue is recognised when the fair value can be reliably measured and it is probable that the economic benefits associated with the transactions will flow to the Group. Depending on the type of transaction, revenue is recognised on the basis of the following specific criteria:

• a) toll revenue is accrued with reference to traffic volumes;
• b) revenue from airport charges is recognised when the facilities are utilised by airport users;
• c) to the extent, for sales of goods, that significant risks and rewards of ownership are transferred to the buyer;
• d) the provision of services is prorated to percentage of completion of work, based on the previously described criteria used for "construction contracts and services in progress", which also include the construction and/or upgrade services provided to grantors, in application of IFRIC 12. When revenue cannot be reliably determined, it is only recognised to the extent that expenses are considered to be recoverable;
• e) rental income or royalties, on an accruals basis, based on the agreed terms and conditions of the contract;
• f) interest income (and interest expense) is calculated with reference to amount of the financial asset or liability, in accordance with the effective interest method;
• g) dividend income is recognised when the right to receive payment is established.

Government grants

Government grants are accounted for at fair value when: (i) the related amount can be reliably determined and there is reasonable certainty that (ii) they will be received and that (iii) the conditions attaching to them will be satisfied.

Grants related to income are accounted for in the income statement for the accounting period in which they accrue, in line with the corresponding costs.

Grants received for investment in motorways and airports are accounted for as construction service revenue, as explained in the note on "Construction contracts and services work in progress".

Grants related to assets received to fund development projects and activities are accounted for in liabilities, and are subsequently recognised as operating income, in line with depreciation of the assets to which they refer. Any grants received to fund investment in property, plant and equipment are accounted for as a reduction in the cost of the asset to which they refer and result in a reduction in depreciation.

Income taxes

Income taxes are recognised on the basis of an estimate of tax expense to be paid, in compliance with the regulations in force, as applicable to each Group company.

Income tax payables are reported under current tax liabilities in the statement of financial position less any payments of taxes on account. Any overpayments are recognised as current tax assets.

Deferred tax assets and liabilities are determined on the basis of temporary differences between the carrying amounts of assets and liabilities as in the Company's books (resulting from application of the accounting policies described in note 3) and the corresponding tax bases (resulting from application of the tax regulations in force in the country relevant to each subsidiary), as follows:

a) deferred tax assets are only recognised to the extent that it is probable that future taxable profits will be available against which the asset can be utilised;

b) deferred tax liabilities are always recognised.

The Parent Company, Atlantia SpA, has again operated a tax consolidation arrangement for 2015, in which certain Italian-registered subsidiaries participate.

Share-based payments

The cost of services provided by directors and/or employees remunerated through share-based incentive plans, and settled through the award of financial instruments, is based on the fair value of the rights at the grant date. Fair value is computed using actuarial assumptions and with reference to all characteristics, at the grant date (vesting period, any consideration due and conditions of exercise, etc.), of the rights and the plan's underlying securities. The obligation is determined by independent actuaries. The cost of these plans is recognised in profit or loss, with a contra-entry in equity, over the vesting period, based on a best estimate of the number of options that will vest.

The cost of any services provided by Directors and/or employees and remunerated through share-based payments, but settled in cash, is instead measured at the fair value of the liability assumed and recognised in profit or loss, with a contra entry in liabilities, over the vesting period, based on a best estimate of the number of options that will vest. Fair value is remeasured at the end of each reporting period until such time as the liability is settled, with any changes recognised in profit or loss.

Impairment of assets and reversals (impairment testing)

At the end of the reporting period, the Group tests property, plant and equipment, intangible assets, financial assets and investments for impairment.

If there are indications that these assets have been impaired, the value of such assets is estimated in order to verify the recoverability of the carrying amounts and eventually measure the amount of the impairment loss. Irrespective of whether there is an indication of impairment, intangible assets with indefinite lives and those which are not yet available for use are tested for impairment at least annually, or more frequently, if an event has occurred or there has been a change in circumstances that could cause an impairment.

If it is not possible to estimate the recoverable amounts of individual assets, the recoverable amount of the cash-generating unit to which a particular asset belongs is estimated.

This entails estimating the recoverable amount of the asset (represented by the higher of the asset's fair value less costs to sell and its value in use) and comparing it with the carrying amount. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount is reduced to its recoverable amount. In calculating value in use, expected future pre-tax cash flows are discounted, using a pre-tax rate that reflects current market assessments of the cost of capital, embodying the time value of money and the risks specific to the asset.

In estimating an operating CGU's future cash flows, after-tax cash flows and discount rates are used because the results are substantially the same as pre-tax computations.

Impairments are recognised in profit or loss in a variety of classifications depending on the nature of the impaired asset. Losses are reversed if the circumstances that resulted in the loss no longer exist, provided that the reversal does not exceed the cumulative impairment losses previously recognised, unless the impairment loss relates to goodwill and investments measured at cost, where the related fair value cannot be reliably determined.

Estimates and judgements

Preparation of financial statements in compliance with IFRS involves the use of estimates and judgements, which are reflected in the measurement of the carrying amounts of assets and liabilities and in the disclosures provided in the notes to the financial statements, including contingent assets and liabilities at the end of the reporting period. These estimates are primarily used in determining amortisation and depreciation, impairment testing of assets (including the measurement of receivables), provisions, employee benefits, the fair value of financial assets and liabilities, and deferred tax assets and liabilities.

The amounts subsequently recognised may, therefore, differ from these estimates. Moreover, these estimates and judgements are periodically reviewed and updated, and the resulting effects of each change immediately recognised in the financial statements.

Translation of foreign currency items

The reporting package of each consolidated enterprise is prepared using the functional currency of the economy in which the enterprise operates. Transactions in currencies other than the functional currency are recognised by application of the exchange rate at the transaction date. Assets and liabilities denominated in currencies other than the functional currency are, subsequently, remeasured by application of the exchange rate at the end of the reporting period. Any exchange differences on remeasurement are recognised in profit or loss. Non-monetary assets and liabilities denominated in foreign currencies and recognised at historical cost are translated using the exchange rate at the date of initial recognition.

Translation of the liabilities, assets, goodwill and consolidation adjustments shown in the reporting packages of consolidated companies with functional currencies other than the euro is made at the closing rate of exchange, whereas the average rate of exchange is used for income statement items to the extent that they approximate the transaction date rate or the rate during the period of consolidation, if lower. All resultant exchange differences are recognised directly in comprehensive income and reclassified to profit or loss upon the loss of control of the investment and the resulting deconsolidation.

Earnings per share

Basic earnings per share is computed by dividing profit attributable to owners of the parent by the weighted average number of shares outstanding during the accounting period.

Diluted earnings per share is computed by dividing profit attributable to owners of the parent by the above weighted average, also taking into account the effects deriving from the subscription, exercise or conversion of all potential shares that may be issued as a result of the exercise of any outstanding rights.

New accounting standards and interpretations, or revisions and amendments of existing standards, that have either yet to come into effect

As required by IAS 8 "Accounting Policies, Changes in Accounting Estimates and Errors", this section describes new accounting standards and interpretations, and amendments of existing standards and interpretations that are already applicable, but that have either yet to come into effect at the reporting date, and that may in the future be applied in the Group's consolidated financial statements:

Name of document	Effective date of IASB document	Date of EU endorsement
New accounting standards and interpretations
IFRS 9 – Financial Instruments	1 January 2018	Not endorsed
IFRS 15 – Revenue from Contracts with Customeri	1 January 2018	Not endorsed
Amendments to existing standards and interpretations
Amendments to IAS 1 – Disclosure Initiative	1 January 2016	December 2015
Amendments to IAS 16 and IAS 38 – Clarification of Acceptable Methods of Depreciation and
Amortisation	1 January 2016	December 2015
Amendments to IFRS 11 – Accounting for Acquisitions of Interests in Joint Operation	1 January 2016	November 2015
Annual Improvements to IFRSs: 2010–2012	1 February 2015	December 2014
Annual Improvements to IFRSs: 2012–2014	1 January 2016	December 2015

IFRS 9 – Financial Instruments

In July 2014, the IASB published the final version of IFRS 9, the standard created to replace the existing IAS 39 for the classification and measurement of financial instruments.

The standard introduces new rules for the classification and measurement of financial instruments, a new impairment model for financial assets and a new hedge accounting model.

Classification and measurement

IFRS 9 envisages a single approach for the assessment and classification of all financial assets, including those containing embedded derivatives. The classification and related measurement is driven by both the business model in which the financial asset is held and the contractual cash flow characteristics of the asset. The financial asset is measured at amortised cost subject to both of the following conditions:

a) the asset is held in conjunction with a business model whose objective is to hold assets in order to collect contractual cash flows; and

b) the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

The financial asset is measured at fair value, with any changes recognised in comprehensive income, if the objectives of the business model are to hold the financial asset to collect the contractual cash flows, or to sell it.

Finally, the standard envisages a residual category of financial asset measured at fair value through profit or loss, which includes assets held for trading.

A financial asset meeting the conditions to be classified and measured at amortised cost may, on initial recognition, be designated as a financial asset at fair value through profit or loss, to the extent that this accounting treatment would eliminate or significantly reduce a measurement or recognition inconsistency (sometimes referred to as an 'accounting mismatch') that would otherwise arise from measuring assets or liabilities or recognising the gains and losses on them on different bases.

In addition, the new standard provides that an entity may, with respect to investments in equity instruments, which consequently may not be carried and measured at amortised cost unless such instruments are shares that are not held for trading but rather for strategic reasons, make an irrevocable election on initial recognition to present changes in the fair value in comprehensive income.

The new IFRS 9, on the other hand, has confirmed the provisions of IAS 39 for financial liabilities including the relative measurement at amortised cost or, in specific circumstances, at fair value through profit or loss.

The requirements of IAS 39 that have been changed are primarily:

• a) the reporting of changes in fair value in connection with the credit risk of certain liabilities, which IFRS 9 requires to be recognised in comprehensive income rather than in profit or loss as movements in fair value as a result of other risks;
• b) the elimination of the option to measure, at amortised cost, financial liabilities consisting of derivative financial instruments entailing the delivery of unlisted equity instruments. The consequence of the change is that all derivative financial instruments must now be recognised at fair value.

Impairment

IFRS 9 has defined a new impairment model for financial assets, with the objective of providing the users of financial statements with more useful information about an entity's expected losses. The model requires an entity to recognise expected credit losses at all times and to update the amount of expected losses recognised at each reporting date to reflect changes in the credit risk of the financial instruments. It is, therefore, no longer necessary to wait for evidence of a trigger event before testing for impairment and recognition of a credit loss. All financial instruments must be tested for impairment, with the exception of those measured at fair value through profit or loss.

Hedge accounting

The most important changes introduced by IFRS 9 regard:

• a) the extended scope of the risks eligible for hedge accounting, to include those to which non-financial assets and liabilities are exposed, also permitting the designation of groups and net positions as hedged items, also including any derivatives;
• b) the option of designating a financial instrument at fair value through profit or loss as a hedging instrument;
• c) the alternative method of accounting for forwards and options, when included in a hedge accounting relationship;
• d) changes to the method of conducting hedge effectiveness tests, following introduction of the principle of the "economic relationship" between the hedged item and the hedging instrument; in addition, retrospective hedge effectiveness testing is no longer required;
• e) the possibility of "rebalancing" an existing hedge where the risk management objectives continue to be valid.

IFRS 15 – Revenue from Contracts with Customers

On 28 May the IASB published the new standard, IFRS 15. IFRS 15 replaces the previous IAS 18, in addition to IAS 11, regarding contract work, and the related interpretations, IFRIC 13, IFRIC 15, IFRIC 18 and SIC 31.

135

IFRS 15 establishes the standards to follow in recognising revenue from contracts with customers, with the exception of contracts falling within the scope of application of standards governing leases, insurance contracts and financial instruments.

The new standard provides an overall framework for identifying the timing and amount of revenue to be recognised in the financial statements. Based on the new standard, the amount recognised as revenue by an entity must reflect the consideration to which the entity is entitled in exchange for goods transferred to the customer and/or services rendered. This revenue is to be recognised when the entity has satisfied its performance obligations under the contract.

In addition, in recognising revenue, the standard stresses the need to assess the likelihood of obtaining/collecting the economic benefits linked to the proceeds. In the case of contract work in progress, currently governed by IAS 11, the new standard introduces the requirement to recognise revenue taking into account the effect of discounting to present value resulting from the deferral of collections over time.

If it is not possible to retrospectively apply the new standard, a modified approach can be used upon first-time adoption. Under this approach, the effects of application of the new standard must be recognised in opening equity at the beginning of the reporting period of first-time adoption.

Amendments to IAS 1 – Disclosure Initiative

In December 2014, the IASB published a number of amendments to IFRS 1, in order to clarify the disclosures to be included in the notes to financial statements.

A number of changes have been made to the disclosures to be provided regarding:

• a) the concept of materiality, relating to the relevance of the information to be provided in financial statements;
• b) the items to be presented in the financial statements;
• c) the structure of the notes;
• d) the accounting policies;
• e) the basis of presentation in the statement of comprehensive income of profits and losses attributable to investments accounted for using the equity method.

Given that the amendments regard the classification of items in the financial statements and the disclosures to be included in the notes, they will not have any impact on amounts in the Group's consolidated financial statements.

Amendments to IAS 16 and IAS 38 – Clarification of Acceptable Methods of Depreciation and Amortisation

In May 2014, the IASB published a number of amendments to IAS 16 – Property, Plant and Equipment, and IAS 38 – Intangible Assets.

The amendments provide clarification regarding acceptable methods of depreciation and amortisation under the above standards. Above all, whilst reiterating that the method of depreciation or amortisation used must reflect the expected pattern of consumption of the future economic benefits embodied in the asset, the amendments introduce the presumption that a revenue-based method of depreciation or amortisation is not appropriate. This is because the IASB believes that revenue generated by an asset reflects factors not directly linked to consumption of the economic benefits embodied in the asset.

In the case of intangible assets, the IASB has also specified that in choosing which method of amortisation to use, the entity must take into account the predominant, limiting factors inherent in the intangible asset, and that the above presumption may only be overcome in limited circumstances, when, for example, (i) the intangible asset is expressed as a measure of revenue that can be obtained from the asset, or (ii) when it can be demonstrated that revenue and the consumption of economic benefits of the intangible asset are highly correlated.

Amendments to IFRS 11 – Accounting for Acquisitions of Interests in Joint Operations

On 6 May 2014, the IASB published a number of amendments to IFRS 11 – Joint Arrangements. The aim of the amendments is to clarify the accounting, by investors, of the acquisition of an interest in a joint operation that constitutes or contains a business.

Annual Improvements to IFRSs: 2010 – 2012

The IASB published "Annual Improvements to IFRSs: 2010-2012 Cycle" on 12 December 2013. The principal amendments that could be relevant to the Group are:

• a) IFRS 2 Share-based Payment: amendments have been made to the definitions of "vesting condition" and "market condition" and further definitions for "performance condition" and "service condition" have been added, for the recognition of share-based benefit plans;
• b) IFRS 8 Operating Segments: the amendments require disclosure of the judgements made by management in applying the aggregation criteria for operating segments, including a description of the aggregate operating segments and the economic indicators assessed in determining if the operating segments have "similar economic characteristics". In addition, the reconciliation of the total of the reportable segment's assets to the entity's total assets should only be disclosed if the total of the reportable segment's assets is regularly provided to the chief operating decision maker.

Annual Improvements to IFRSs: 2012 – 2014

The IASB published "Annual Improvements to IFRSs: 2012-2014 Cycle" on 25 September 2014. The principal amendments that could be relevant to the Group are:

• a) IFRS 7 Financial Instruments: Disclosures: the amendments eliminate uncertainty regarding when disclosures regarding the offsetting of financial assets and liabilities (that came into effect from accounting periods beginning on or after 1 January 2013) must be included in interim financial statements; the document clarifies that fact that offsetting disclosures are not explicitly required for all interim financial statements. However, such disclosures may be necessary in order to meet the requirements of IAS 34, if the disclosure is material;
• b) IAS 19 Employee Benefits: the document clarifies that the high-quality corporate bonds used in estimating the discount rate for post-employment benefits should be denominated in the same currency as the benefits to be paid. The changes also establish that the depth of the market for such bonds should be assessed at currency level;
• c) IAS 34 Interim Financial Statements: changes have been introduced to clarify the requirements when the required disclosures are presented in the interim financial report, but not in the interim financial statements. Such disclosures may be included by including a reference in the interim financial statements to elsewhere in the interim financial report, provided that the latter document is available to readers of the interim financial statements in the same way and at the same time as the interim financial statements.

The effect of the future application of newly issued standards and interpretations, as well as all revisions and amendments to existing standards, with the exception of those regarding IAS 1, is currently being evaluated by the Atlantia Group. The impact cannot currently be reasonably estimated.

4. CONCESSIONS

The Group's core business is the operation of motorways and airports under concessions held by Group companies. The purpose of the concessions is the construction and operation of motorway infrastructure (in Italy and abroad) and of the airport system serving Italy's capital city.

Essential information regarding the concessions held by Group companies is set out below.

Further details of events of a regulatory nature, linked to the Group's concession arrangements, during the year are provided in note 10.7 "Significant legal and regulatory aspects".

Italian motorways

Existing concession arrangements establish the right for motorway operators to demand tolls from motorway users. Tolls are revised annually through a toll formula contained in the specific individual concession arrangements. On the other hand, operators have an obligation to pay concession fees, to expand and modernise the motorway infrastructure operated under the concessions, and to maintain and operate the motorways. Concessions are not automatically renewed on expiry but are publicly re-tendered in accordance with laws as may be in effect from time to time. This consequently entails the handover free of charge of all assets in a good state of repair by the operator to the Grantor, unless the concession provides for a payment by a replacement operator of the residual carrying amount of assets to be handed over.

The only developments affecting the motorway concessions held by the Group's Italian companies in 2015 are the following:

• a) the signature by the Ministry of Infrastructure and Transport and Autostrade per l'Italia, on 10 December 2015, of the II Addendum to the Single Concession Arrangement, which has added the Casalecchio - Northbound interchange to Autostrade per l'Italia's investment commitments, at a cost of up to €157,875 thousand;
• b) the fact that the process of revising the financial plans of Raccordo Autostradale Valle d'Aosta, Tangenziale di Napoli and Autostrada Tirrenica is still in progress.

Further details of both the above aspects are provided in note 10.7 "Significant legal and regulatory aspects".

With the exception of the above, there were no further changes during 2015 to report regarding the concession arrangements to which the Group's Italian companies are party.

In addition, with regard to Autostrade per l'Italia's concession, the company is in the process of implementing a programme of investment in major infrastructure projects (including the works envisaged in the Concession Arrangement of 1997, the IV Addendum of 2002 and other investment), worth approximately €16.0 billion, including approximately €9.2 billion already completed as at 31 December 2015 (€8.5 billion as at 31 December 2014). The investment programme, which forms part of the company's financial plan, updated to December 2013, essentially regards the upgrade of existing motorways.

With regard to the concession held by Autostrade Meridionali, which expired on 31 December 2012, the company is continuing to operate the relevant motorway (the A3 Naples-Salerno) under a contract extension, in accordance with the terms of the previous arrangement, and whilst awaiting the conclusion of the tender process that will select the new operator to take over operation of the motorway. Further information is provided in note 10.7.

Overseas motorways

Brazil

The concessions held by the Group's Brazilian companies also envisage a series of obligations relating to the construction, expansion, modernisation, maintenance and operation of the motorways covered by the concession arrangements, in return for the right to charge motorway users a toll, revised annually on the basis of inflation.

The following should be noted with regard to operators' investment commitments:

• a) Triangulo do Sol has residual investment commitments, under its concession arrangement, of approximately 89 million Brazilian reals (equal to approximately €21 million at the closing exchange rate at the end of 2015);
• b) Rodovias das Colinas is currently engaged in widening the existing sections, with the remaining amount to be invested totalling approximately 184 million Brazilian reals (equal to approximately €43 million at the closing exchange rate at the end of 2015). Work is scheduled for completion in 2019;
• c) Rodovia MG050 is currently carrying out work designed to upgrade the section of motorway. The remaining value of the works to be carried out is approximately 564 million Brazilian reals (equal to approximately €131 million at the closing exchange rate at the end of 2015).

On expiry, the concessions are publicly re-tendered and all the motorway assets built by the operator must be handed over to the Grantor free of charge in a good state of repair.

Chile

The concessions held by Group companies establish the right for motorway operators to charge motorway users a toll which may be subject to a minimum guaranteed by the Grantor. These tolls are revised annually on the basis of inflation and, in certain cases, other parameters represented by unconditional increases (3.5% for the concessions held by Costanera Norte, Vespucio Sur and Nororiente, 1.5% for AMB) and/or quality indicators. The operators have specific obligations: the payment of concession fees, the expansion and/or upgrade of the motorways covered by their concession arrangements and maintainance and operation of the motorways. On expiry, the concessions are publicly re-tendered and all the motorway assets built by the operator handed over to the Grantor free of charge in a good state of repair. The concessions held by Nororiente and AMB will expire on reaching specific thresholds for revenue (in real terms) and, in any event, not beyond a certain date. The investment programme to which the operator, Costanera Norte, is committed, named "Programma Santiago Centro Oriente" (or "CC7"), covers seven projects designed to eliminate the principal bottlenecks on the section operated under concession. The total value of the work to be carried out is around 250 billion Chilean pesos (approximately €338 million¹⁸¹ ), with approximately 52% of the work completed at the end of 2015. The agreement with the Chilean government envisages that the operator will receive specific payment from the grantor in return for the above construction services, including an amount to be paid on the expiry of the concession term designed to guarantee a minimum return, and a share of the increase in revenue deriving from the installation of new tollgates.

Finally, the operator, AMB, has plans in place for the construction of the remaining 8-km section of the total of 10 km covered by the concession at an estimated cost of approximately 22 billion Chilean pesos (equal to €28 million at the closing exchange rate at the end of 2015). Work should start in 2016 and be completed in 2018. This investment is included in the company's financial plan.

Poland

Stalexport Autostrada Malopolska, holds a concession requiring implementation of an investment programme and the obligation to operate and maintain the specific section of motorway covered by its concession arrangement. In return for the services rendered, the operator has the right to charge motorway users a toll. The concession arrangement has capped the tolls that may be charged, although the cap may rise in line with

¹⁸⁽¹⁾ The amounts for previous years are converted at the average exchange rate for the year in question, whilst the closing exchange rate at the end of 2015 has been used to convert the amounts for 2016 and future years.

inflation and growth in Poland's GDP. The tolls currently applied are well below the cap. The concession arrangement envisages a profit sharing scheme, with the share of the profits to be passed on to the State rising in line with increases in shareholder returns. Completion of the second and final phase of the investment and maintenance programme is currently in progress. The operator has residual investment commitments, under its concession arrangement, of approximately 344 million zloty (equal to approximately €81 million at the closing exchange rate for 2015). On expiry, the concession is to be transferred to the Grantor and the motorway infrastructure must have at least 50% of its remaining usful life.

Italian airports

The operator, Aeroporti di Roma ("ADR") holds an exclusive concession to manage the airport system serving Italy's capital city, consisting of "Leonardo da Vinci" Fiumicino airport and "G.B. Pastine" Ciampino airport, in accordance with the concession awarded to the company by Law 755 of 10 November 1973, the Single Concession Arrangement covering management of the capital city's airport system and the Planning Agreement ("the Single Deed"), signed on 25 October 2012, and which replaced the previous Arrangement 2820, dated 26 June 1974. The Single Deed regulates, in one single document, both relations pertaining to the airport concession (Section I of the Agreement), and the criteria for determining and periodically reviewing the applicable regulatory tariffs, being the fees receivable for the aviation services provided, within the airports, on an exclusive basis by the operator, and their review throughout the airport concession term (Section II, "Planning Agreement and Tariff Regulation"). The setting and revision of regulatory tariffs is based on application of a RAB-based method, which takes into account, among other things, the amount of capital expenditure carried out and traffic projections.

In accordance with the principle that management of the concession must be based on affordable and organic criteria, as defined by Law 755 of 10 November 1973, as amended, by signing the Single Deed, ADR has committed:

• a) to progressive construction of the infrastructure listed therein for the purposes of increasing the capacity of the capital's airport system to cope with the projected volume of traffic through to the end of the remaining concession term (June 2044);
• b) to manage the above airport system by providing the airport services for which it is responsible (e.g. the maintenance of runways and aprons), but also through the sub-concession of areas and premises to be used for aviation and other activities, such as, for example, retail businesses.

Information of the investment commitments included in ADR's concession arrangement is provided in the section, "Italian airports", in the Report on Operations accompanying these financial statements. The commitments are focused within a period of ten years and constitutes, under the terms of the concession arrangement, the so-called "Airport Master Plan". In turn, the Master Plan contains a detailed list of the investments to be carried out in each five-year period, corresponding to each regulatory "sub-period" for tariff purposes.

The first ten-year period from 2012 to 2021 is currently in progress. The latest Master Plan, approved in January 2014, envisages that during the initial regulatory period (2012-16), the company will carry out capital expenditure amounting to approximately €930 million, of which €746 million is to be carried out in the three years from 2014 to 2016. Capital expenditure totalling €491 million was completed in the two-year period, 2014-2015 (based on the regulatory accounts).

In return for the commitments contained in the Single Deed, ADR has the right to receive income from:

• a) the use, by airlines and passengers, of airport infrastructure;
• b) the use, for whatever purpose, of areas, buildings and premises within the grounds of the airports managed under concession;
• c) collection of a fair consideration from whoever conducts a non-aviation activity for profit within the grounds of the airport managed under concession, unless otherwise remunerated.

ADR is also required to pay an annual concession fee to ENAC.

The works carried out by ADR on the grounds of the airport are the property of ADR until expiry of the airport concession term, at the end of which the company will receive from ENAC a consideration equal to the remaining value of the capital expenditure carried out, as assessed on the basis of the regulatory accounts. At the end of 2015, ADR does not have operating assets with a remaining value, based on its regulatory accounts, of more than zero.

3. Consolidated financial statements as at and for the year ended 31 December 2015

	COUNTRY OPERATOR	SECTION OF MOTORWAY	KILOMETRES IN SERVICE	EXPIRY DATE
	ITALIAN MOTORWAYS
Italy	Autostrade per l'Italia	A1 Milan – Naples	803.5
		A4 Milan – Brescia	93.5
		A7 Genoa – Serravalle	50.0
		A8/9 Milan – lakes	77.7
		A8 / A26 link road	24.0
		A10 Genoa – Savona	45.5
		A11 Florence – Pisa North	81.7
		A12 Genoa – Sestri Levante	48.7
		A12 Rome – Civitavecchia	65.4
		A13 Bologna – Padua	127.3
		A14 Bologna – Taranto	781.4
		A16 Naples – Canosa	172.3
		A23 Udine – Tarvisio	101.2
		A26 Genoa – Gravellona Toce	244.9
		A27 Mestre – Belluno	82.2
		A30 Caserta – Salerno	55.3
			2,854.6	31 Dec 2038
	Autostrade Meridionali	A3 Naples – Salerno	51.6	31 Dec 2012 (1)
	Raccordo Autostradale Valle d'Aosta	A5 Aosta – Monte Bianco	32.3	31 Dec 2032
	Tangenziale di Naples	Naples ring road	20.2	31 Dec 2037
	Società Autostrada Tirrenica	A12 Livorno - Civitavecchia	40.1	31 Dec 1946
	Società Italiana per azioni per il Traforo del Monte Bianco	Mont Blanc Tunnel	5.8	31 Dec 2050
	OVERSEAS MOTORWAYS
Brazil	Triangulo do Sol Auto-Estradas	SP 310 Rodovia Washington Luis SP326 Rodovia Brigadeiro Faria Lima SP333 Rodovia Carlos Tonani, Nemesio Cadetti e	442.0	18 July 2021
	Rodovias das Colinas	Laurentino Mascari SP075 - Itu/Campinas SP127- Rio Claro/Tatuí SP280 - Itu/Tatuí	307.0	1 July 2028
		SP300 – Jundiaí/Tietê SPI-102/300
	Concessionaria da Rodovia MG050	MG-050 BR-265	372.0	12 June 2032
Chile	Sociedad Concesionaria de Los Lagos	BR-491 Rio Bueno - Puerto Montt (Chile)	135.0	20 Sept 2023
	Sociedad Concesionaria Litoral Central	Nuevo Camino Costero: Cartagena Algarrobo Camino Algarrobo - Casablanca (Ruta F-90)	80.6	16 Nov 2031
	Sociedad Concesionaria Vespucio Sur	Camino Costero Interior (Ruta F-962-G) Ruta 78 - General Velàsquez General Velàsquez - Ruta 5 Sur Ruta 5 Sur - Nuevo Acceso Sur a Santiago	23.5	6 Dec 2032
		Nuevo Acceso Sur a Santiago - Av. Vicuna Mackenna Av. Vicuna Mackenna - Av. Grecia
	Sociedad Concesionaria Costanera Norte	Puente La Dehesa - Puente Centenario Puente Centenario - Vivaceta Vivaceta - A. Vespucio Estoril - Puente Lo Saldes	43.0	30 June 2033
	Sociedad Concesionaria Autopista Nororiente	Sector Oriente: Enlace Centenario - Enlace Av. Del Valle Sector Poniente: Enlace Av. Del Valle - Enlace Ruta 5 Norte	21.5	7 Jan 2044 (2)
	Sociedad Concesionaria AMB	Section A Section B	10.0	2020 (3)
Poland	Stalexport Autostrada Malopolska	A4 Krakow – Katowice (Poland)	61.0	15 Mar 2027

	COUNTRY OPERATOR	AIRPORT	EXPIRY DATE
	ITALIAN AIRPORTS
Italy	Aeroporti di Roma	"Leonardo da Vinci" Fiumicino
		"G.B. Pastine" Ciampino	30 June 2044

(1) In compliance with the concession arrangement, in December 2012 the Grantor asked Autostrade Meridionali to continue operating the motorway after 1 January 2013, in accordance with the terms and conditions of the existing arrangement.

(2) Estimated date: the concession will expire when the net present value of the revenues received, discounted to the start date of the concession at the real rate of 9.5%, reaches the agreed threshold of €360 million and, in any event, no later than 2044.

(3) Estimated date: the concession will expire when the net present value of the revenues received, discounted to the start date of the concession at the real rate of 9.0%, reaches the agreed threshold of €40 million and, in any event, no later than 2048.

5. SCOPE OF CONSOLIDATION

In addition to the Parent Company, entities are consolidated when Atlantia exercises control as a result of its direct or indirect ownership of a majority of the voting power of the relevant entities (including potential voting rights resulting from currently exercisable options), or because, as a result of other events or circumstances that (regardless of its percentage interest in the entity) mean it has power over the investee, exposure, or rights, to variable returns from its involvement with the investee, and the ability to use its power over the investee to affect the amount of the investor's returns. Subsidiaries are consolidated using the line-byline method and are listed in Annex 1.

Four companies listed in Annex 1 have not been consolidated due to their quantitative and qualitative immateriality to a true and fair view of the Group's financial position, results of operations and cash flows, as a result of their operational insignificance (dormant companies or companies whose liquidation is nearing completion).

All entities over which control is exercised are consolidated from the date on which the Group acquires control, as defined above, whilst they are deconsolidated from the date on which the Group ceases to exercise control.

Companies are, in part, consolidated on the basis of the specific reporting packages prepared by each consolidated company, as of the end of the reporting period and in compliance with the IFRS accounting policies adopted by the Group. Companies are consolidated according to the following criteria and procedures:

• a) use of the line-by-line method, entailing the reporting of non-controlling interests in equity and profit or loss and the recognition of all assets, liabilities, revenues and costs, regardless of percentage ownership;
• b) elimination of intercompany assets, liabilities, revenues and costs, including the reversal of unrealised profits and losses on transactions between consolidated companies and recognition of the consequent deferred taxation;
• c) reversal of intercompany dividends and reallocation to the relevant opening equity reserves;
• d) netting of the carrying amount of investments in consolidated companies against the corresponding amount of equity, with any resultant positive and/or negative differences being debited/credited to the relevant balance sheet accounts (assets, liabilities and equity), as determined on the acquisition date of each investment and adjusted for subsequent variations. Following the acquisition of control, any acquisition of further interests from non-controlling shareholders, or the sale of interests to such shareholders not resulting in the loss of control of the entity, are accounted for as owner transactions and the related changes recognsied directly in equity; any resulting difference between the amount of the change in equity attributable to non-controlling interests and cash and cash equivalents exchanged are recognised directly in equity attributable to owners of the Parent;
• e) translation of the reporting packages of consolidated companies in functional currencies other than the euro applying the method prevsiously described in the policy regarding the "Translation of foreign currency items", included in note 3.

The exchange rates, shown below, used for the translation of reporting packages denominated in functional currencies other than the euro, were obtained from the Bank of Italy:

3. Consolidated financial statements as at and for the year ended 31 December 2015

CURRENCY	2015		2014
	Spot exchange rate 31 December	Average exchange rate	Spot exchange rate 31 December	Average exchange rate
Euro/US Dollar	1.089	1.110	1.214	1.329
Euro/Polish Zloty	4.264	4.184	4.273	4.184
Euro/Chilean Peso	772.713	726.406	737.297	756.933
Euro/Brazilian Real	4.312	3.700	3.221	3.121
Euro/Indian Rupee	72.022	71.196	76.719	81.041

The scope of consolidation at 31 December 2015 differs from the scope used at 31 December 2014, following the Group's acquisition of a controlling interest in Autostrade Tirrenica (SAT), as described in note 6.1 below.

During 2015, a number of transactions were carried out as part of a restructuring of the Group's subsidiaries. These included:

• a) the merger of ADR Engineering with and into SPEA Ingegneria Europea, both direct subsidiaries of the Parent Company at the effective date of the merger. Following the merger, SPEA - Ingegneria Europea changed its name to SPEA Engineering;
• b) the restructuring of the Brazilian sub-holding companies, described in note 6.2, was completed.

Finally, the results for 2014 benefitted from the contribution of TowerCo, which was sold during the second quarter of 2014. The contribution included both the operating results through to the company's deconsolidation and the gain realised on the sale.

Finally, the liquidation of two companies, Ecomouv D&B and Telepass France, was completed in December 2015 (on 22 December 2015 and 28 December 2015, respectively). These companies have, therefore, not been consolidated from the dates of completion of their respective liquidations.

6. ACQUISITIONS AND CORPORATE ACTIONS DURING THE PERIOD

6.1 Acquisition of control of Autostrada Tirrenica

On 25 February 2015, Autostrade per l'Italia which already owned 24.98% of Autostrada Tirrenica SpA (SAT), agreed to acquire a further 74.95% stake in the company from SAT's other existing shareholders, thus raising its total interest to 99.93%. The transaction was completed in September 2015, following the receipt of clearance from the Grantor, with Autostrade per l'Italia's payment of a total consideration of €84.3 million.

SAT, which was a subsidiary of Autostrade per l'Italia until 2011, holds the concession for the A12 Livorno– Civitavecchia motorway. The related Single Concession Arrangement entered into with the Grantor in 2009 envisages an extension of the concession from 31 October 2028 to 31 December 2046, and execution of the work needed to complete the motorway through to Civitavecchia. In response to observations from the European Commission regarding, among other things, extension of the concession to 2046, on 14 October 2014 the Grantor sent SAT a draft addendum envisaging extension of the concession to 2043, completion of work on the Civitavecchia–Tarquinia section (in progress), and eventual completion of the motorway (in sections, if necessary) to be put out to tender. The draft addendum envisages that completion of the motorway will, in any event, be subject to fulfilment of the technical and financial conditions to be verified jointly by the grantor and the operator and execution of an addendum to the Concession Arrangement, with a viable financial plan attached. Subsequently, on 13 May 2015, a memorandum of understanding was signed by the Grantor, Tuscany Regional Authority, Lazio Regional Authority, Autostrade per l'Italia and SAT with an attached draft addendum which, whilst maintaining (i) the duration of the concession until 2043, (ii) a viable financial plan for the Civitavecchia–Tarquinia section and (iii) the obligation to put all the works out to tender, provides for a commitment from SAT to carry out the design work involved in improving the final designs for the Tarquinia–Ansedonia section, in preparing the final design and for the environmental impact study for the Ansedonia–Grosseto South section, and for the final design for improvements to the existing dual carriageway (the SS. 1 Variante Aurelia) between Grosseto South and San Pietro in Palazzi, retaining the current layout of the road. Performance of the above construction work is subject to positive outcomes of studies of the technical/design, financial and administrative feasibility to be conducted jointly by the Grantor and SAT, with regard to the above completion work, and execution of an addendum with a viable financial plan. Following a request from the Grantor on 5 June 2015, after further discussion with Italy's representative office at the EU, on 24 June 2015 SAT prepared and submitted further versions of a financial plan, relating to (i) the sections in operation and the Civitavecchia–Tarquinia section under construction, and (ii) the entire Civitavecchia–San Pietro in Palazzi section of road, both expiring on 31 December 2040.

For the purposes of preparation of these consolidated financial statements, the transaction has been accounted for, in accordance with IFRS 3, using the acquisition method, which involved recognition of the fair value of the assets acquired and liabilities assumed.

0.3 287.2 4.4 0.1 12.6 22.3 -47.9	58.8
		0.3 346.0 4.4 0.1 12.6 22.3
	17.8	-30.1
9.2	-23.9	-14.7
-176.9		-176.9
-8.5		-8.5
-42.9		-42.9
59.9	52.7	112.6
		28.2
		0.1
		84.3
		-12.6 71.7

Completion of the measurement process has resulted in a net fair value adjustment to the net assets acquired of €52.7 million, reflecting recognition of the following:

• a) an increase in the value of the concession held by SAT, estimated at €58.8 million;
• b) a fair value adjustment of SAT's non-interest bearing financial liability consisting of an amount payable to the former Central Guarantee Fund ("Fondo Centrale di Garanzia"), with the recognition of an estimated reduction in the value of the liability of €17.8 million;
• c) net deferred tax liabilities of €23.9 million.

From the date of its first-time consolidation to 31 December 2015, SAT generated total revenue of €21.3 million and a net loss of €0.1 million.

Had the company been consolidated on a line-by-line basis from 1 January 2015, the Atlantia Group's consolidated revenue and consolidated profit for 2015 would have amounted to €6,116.2 million (including €805.3 million in revenue from construction services) and €980.5 million.

At the end of 2015, SAT completed the acquisition of own shares representing 0.06% of its issued capital. As at 31 December 2015, the Group holds a 99.99% interest in SAT.

6.2 Restructuring of the Group's Brazilian operations

The Brazilian sub-holding companies underwent a comprehensive restructuring in the second half of 2015, with the aim of simplifying the corporate structure and shortening the chain of control over the locally owned motorway operators.

In particular, following receipt of clearance from the competent local authorities, the reverse merger of Triângulo do Sol Participações with its former subsidiary, Atlantia Bertin Concessões, was carried out and a complete carve-out of the latter conducted, resulting in the merger of the four carved-out business units with and into the motorway operators, Rodovias das Colinas, Triângulo do Sol and Rodovia MG-050 and the parent, Infra Bertin Participações. Finally, Infra Bertin Participações changed its name to AB Concessões, which has thus assumed the new role of holding company with direct control over the local motorway operators. The above restructuring resulted in the recognition of tax benefits (consisting of deferred tax assets) totalling €50 million (at the average euro/real exchange rate of 3.7 for 2015) for the operators, Rodovias das Colinas and Triângulo do Sol. A matching amount has been accounted for in the income statement for 2015.

7. NOTES TO THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION

The following notes provide information on items in the consolidated statement of financial position as at 31 December 2015. Comparative amounts as at 31 December 2014 are shown in brackets. Details of items in the consolidated statement of financial position deriving from related party transactions are provided in note 10.5.

7.1 Property, plant and equipment €231,742 thousand (€191,555 thousand)

As at 31 December 2015, property, plant and equipment amounts to €231,742 thousand, compared with a carrying amount of €191,555 thousand as at 31 December 2014. The following table provides details of property, plant and equipment at the beginning and end of the period, showing the original cost and accumulated depreciation at the end of the period.

€000		31 December 2015			31 December 2014
	Cost	Accumulated depreciation	Carrying amount	Cost	Accumulated depreciation	Carrying amount
Property, plant and equipment	748,342	-520,480	227,862	686,780	-499,382	187,398
Property, plant and equipment held under finance leases	3,286	-335	2,951	3,493	-222	3,271
Investment property	7,053	-6,124	929	6,804	-5,918	886
Total property, plant and equipment	758,681	-526,939	231,742	697,077	-505,522	191,555

The increase in the carrying amount with respect to 31 December 2014, amounting to €40,187 thousand, primarily reflects a combination of capital expenditure during the year, amounting to €95,525 thousand, and depreciation of €51,334 thousand, as shown in the following table.

					CHANGES DURING THE YEAR
€000	Carrying amount as at 31 December 2014	Additions	Depreciation	Impairments	Disposals	Net currency translation differences	Reclassifications and other adjustments	Net change in scope of consolidation	Carrying amount as at 31 December 2015
Property, plant and equipment
Land	8,001	-	-	-	-	-19	-	-	7,982
Buildings	44,941	1,053	-3,625	-	-44	5	930	-	43,260
Plant and machinery	29,906	11,435	-8,845	-	-130	-58	2,347	-	34,655
Industrial and business equipment	47,557	15,541	-19,233	-8	-684	-153	5,573	242	48,835
Other assets	43,856	26,964	-19,349	-1,254	-124	-1	701	39	50,832
Property, plant and equipment under construction and advance payments	13,137	40,532	-	-	-44	68	-11,406	11	42,298
Total	187,398	95,525	-51,052	-1,262	-1,026	-158	-1,855	292	227,862
Property, plant and equipment held under finance leases
Equipment held under finance leases	15	-	-3	-	-	1	-10	-	3
Other assets held under finance leases	3,256	-	-160	-	-9	-139	-	-	2,948
Total	3,271	-	-163	-	- 9	-138	-10	-	2,951
Investment property
Land	39	-	-	-	-	-	-	-	39
Buildings	847	-	-119	-	-8	1	169	-	890
Total	886	-	-119	-	- 8	1	169	-	929
Total property, plant and equipment	191,555	95,525	-51,334	-1,262	-1,043	-295	-1,696	292	231,742

"Investment property" of €929 thousand as at 31 December 2015 refers to land and buildings not used in operations and is stated at cost. The total fair value of these assets is estimated to be €2 million, based on independent appraisals and information on property markets relevant to these types of investment property.

There were no significant changes in the expected useful lives of these assets during 2015. As at 31 December 2015, property, plant and equipment is free of mortgages, liens or other collateral guarantees restricting use.

7.2 Intangible assets €24,844,588 thousand (€25,182,029 thousand)

This item consists of:

a) intangible assets deriving from concession rights, totalling €20,043,215 thousand (€20,364,088 thousand as at 31 December 2014), and regarding the following categories:

• 1) rights acquired from third parties (€6,087,169 thousand), essentially reflecting the fair value recognised following the acquisitions of Aeroporti di Roma and the Chilean and Brazilian companies in previous years;
• 2) rights deriving from the commitment to perform construction services for which no additional economic benefits are received (€8,440,514 thousand);
• 3) rights deriving from construction services for which additional economic benefits are received (€5,415,985 thousand);
• 4) rights deriving from construction services carried out by service area operators, represented by assets that were handed over free of charge to the Group's operators on expiry of the related sub-concessions (€99,547 thousand);
• b) goodwill and other intangible assets with indefinite lives, totalling €4,382,789 thousand;
• c) other intangible assets of €418,514 thousand (€435,151 thousand as at 31 December 2014), essentially consisting of contractual rights attributable to Aeroporti di Roma, accounted for following identification of the fair value of the former Gemina group's assets and liabilities.

		31 December 2015				31 December 2014
€000	Cost	Accumulated amortisation	Accumulated	impairments Carrying amount	Cost	Accumulated amortisation	Accumulated	impairments Carrying amount
Intangible assets deriving from concession rights	27,216,893	-6,978,931	-194,747	20,043,215	26,800,520	-6,241,685	-194,747	20,364,088
Goodwill and other intangible assets with indefinite lives	4,402,304	-	-19,515	4,382,789	4,401,725	-	-18,935	4,382,790
Other intangible assets	840,684	-418,260	-3,840	418,584	789,607	-351,008	-3,448	435,151
Intangible assets	32,459,881	-7,397,191	-218,102	24,844,588	31,991,852	-6,592,693	-217,130	25,182,029

Intangible assets recorded a net decrease of €337,441 thousand in 2015, primarily due to a combination of the following:

• a) amortisation for the year of €865,558 thousand;
• b) the negative impact of currency translation differences, accounting for a reduction of €423,339 thousand, substantially due to a significant fall in the value of the Brazilian real against the euro;
• c) investment in construction services for which additional economic benefits are received, totalling €570,751 thousand;
• d) recognition of the intangible assets attributable to SAT from the date of the company's first-time consolidation, totalling €346,087 thousand, including the related gain accounted for in intangible assets deriving from concession rights (€58,842 thousand), following the acquisition of control in 2015.

The following table shows intangible assets at the beginning and end of the period and changes during 2015 in the different categories of intangible asset.

3. Consolidated financial statements as at and for the year ended 31 December 2015

	VARIAZIONI DELL'ESERCIZIO
€000	Carrying amount as at 31 December 2014	Additions due to completion of construction services	Additions: purchases and capitalisations	Additions free of charge	Amortisation	Changes due to revised present value of contractual obligations	Disposals	Net currency translation differences	Reclassifications and other adjustments e altre rettifiche	Change in scope of consolidation	Carrying amount as at 31 December 2015
Intangible assets deriving from concession rights
Acquired concession rights	6,543,078	-		- -	-231,650	-	-	-283,101		- 58,842	6,087,169
Concession rights accruing from construction services for which no additional economic benefits are received	8,824,429	-		- -	-369,991	9,018	-	-8,057	-14,885	-	8,440,514
Concession rights accruing from construction services for which additional economic benefits are received	4,899,578	570,751		- -	-194,927	-	-	-126,895	-19,416	286,894	5,415,985
Concession rights accruing from construction services provided by sub-operators	97,003	-		- 6,577	-4,319	-	-		-	- 286	99,547
Total	20,364,088	570,751		- 6,577	-800,887	9,018	-	-418,053	-34,301	346,022	20,043,215
Goodwill and other intangible assets with indefinite lives
Goodwill	4,382,757	-		- -	-	-	-		-	- -	4,382,757
Trademarks	33	-		- -	-	-	-	-1		- -	32
Total	4,382,790	-		- -	-	-	-	- 1	-	-	4,382,789
Other intangible assets
Commercial contractual relations	368,149	-		- -	-36,390	-	-		-	- -	331,759
Development costs	10,920	-	11,381	-	-11,719	-	-	26	7	54	10,669
Industrial patents and intellectual property rights	11,305	-	8,103	-	-9,010	-	-2	-457	192	3	10,134
Concessions and licenses	10,040	-	2,907	-	-3,367	-	-5	-155	1,179	-	10,599
Other	16,212	-	8,754	-	-4,185	-	-57	-6,581	13,340	-	27,483
Intangible assets under development and advance payments	18,525	-	8,510	-	-	-	-394	1,882	-591	8	27,940
Total	435,151	-	39,655	-	-64,671	-	-458	-5,285	14,127	6 5	418,584
Intangible assets	25,182,029	570,751	39,655	6,577	-865,558	9,018	-458	-423,339	-20,174	346,087	24,844,588

There were no significant changes in the expected useful lives of intangible assets during the period. The following analysis shows the various components of investment in motorway and airport infrastructure effected through construction services, as reported in the consolidated statement of cash flows.

€000	NOTE	2015	2014	INCREASE/ (DECREASE)
Use of provisions for construction services required by contract for which no additional economic benefits are received	7.13 / 8.11	502,495	406,613	95,882
Use of provisions for refurbishment of airport infrastructure	7.14	150,997	85,927	65,070
Increase in intangible concession rights accruing from completed construction services for which additional economic benefits are received	7.2	570,751	424,369	146,382
Increase in financial assets deriving from motorway construction services	8.3	87,895	52,181	35,714
Revenue from government grants for construction services for which no additional economic benefits are received	7.13 / 8.3	39,957	34,582	5,375
Investment in assets held under concession		1,352,095	1,003,672	348,423

Research and development expenditure of approximately €1.1 million has been recognised in the consolidated income statement for 2015. These activities are carried out in order to improve infrastructure, the services offered, safety levels and environmental protection.

"Goodwill and other intangible assets with indefinite lives", totalling €4,382,789 thousand, consists of the goodwill allocated to the CGU represented by Autostrade per l'Italia, amounting to €4,382,757 thousand, following the acquisition of a majority interest in the former Autostrade – Concessioni e Costruzioni Autostrade SpA in 2003. This goodwill coincides with the carrying amount as at 1 January 2004 (the IFRS transition date) and was determined in accordance with prior accounting standards under the exemption permitted by IFRS 1. The impairment test of the CGU represented by Autostrade per l'Italia, to which the above goodwill is allocated, confirmed that the carrying amount is fully recoverable.

With regard to the recoverability of the intangible assets belonging to other Group companies, CGUs showing evidence of a potential impairment have been tested for impairment.

In terms of the methodology used in impairment testing, the following should be noted:

• a) as explained in note 3, in line with the approach adopted in previous years, each operator is a separate CGU since the cash flows generated by the motorways operated under concession arrangements are largely independent of cash flows generated by other assets. Subsidiaries that do not hold concessions are also treated as a separate CGU;
• b) in the case of the motorway operators tested for impairment, with the exception of Autostrade Meridionali (which is dealt with below), value in use was estimated on the basis of the long-term plans drawn up by the respective companies, containing traffic, investment, revenue and cost projections for the full term of the

related concessions, as previously described in note 4. The use of long-term plans covering the entirety of the respective concession terms is deemed more appropriate than the approach provisionally suggested by IAS 36 (namely, a limited explicit projection period and the estimated terminal value), given the intrinsic nature of the motorway concession arrangements, above all with regard to the regulations governing the sector and the predetermined duration of the arrangements;

c) in the case of the CGUs represented by Spea Engineering and Pavimental, which essentially provide support services to the Group's operators (with regard to their construction and maintenance activities), it was also considered appropriate to estimate value in use on the basis of the same period covered by the long-term plans of the operators to which they provide their services (2044), without estimating the terminal value.

The following table shows the key assumptions forming the basis for the long-term plans of the CGUs represented by the Group's motorway operators, prepared on the basis of the regulatory mechanisms included in the specific concession arrangements. The recoverable value of the CGUs is estimated on the basis of these assumptions (rate of traffic growth, rate of toll increases and discount rate used, representing the companies' after-tax WACC).

	Traffic growth rate (CAGR)	Average annual toll increase(1)	Discount rate (after-tax WACC)
Autostrade per l'Italia	1.0%	2.12%	6.14%
Raccordo Autostradale Valle d'Aosta	1.7%	3.44%	6.78%
Rodovia Das Colinas (Brasil)	3.5%	4.95%	11.15%
Triangulo do Sol Auto-Estradas (Brasil)	3.5%	5.38%	11.15%
Concessionaria da Rodovia MG050 (Brasil)	4.5%	5.57%	11.15%

(1) in Autostrade per l'Italia's case, this includes an average annual toll increase of 1.15% based on implementation of the investment programme, in addition to annual toll increases designed to take account of inflation in the country of operation.

The quantification of the above assumptions was primarily based on publically available information from external sources, integrated, where appropriate, by estimates based also on historical data.

In the case of the CGU represented by Raccordo Autostradale Valle d'Aosta, this company's intangible assets deriving from concession rights were written down in previous years by €193,843 thousand, before the related deferred taxation. In 2015, the company submitted a proposal for a further addendum to its Single Concession Arrangement of 2009 to the Grantor. An annex to this document contains a new long-term plan based on the financial compensation mechanism provided for in the existing arrangement, maintaining the same returns contained therein. The addendum will be examined by the Interministerial Economic Planning Committee ("CIPE") at an upcoming meeting. The related impairment test was conducted on the basis of the proposed plan and would have resulted in the partial reversal of previous impairments . However, this was not done in view of the uncertainty surrounding the regulatory framework in the process of being finalised. Should the addendum not be approved, the company could activate the clause contained in art. 9 bis of the existing Single Concession Arrangement, which provides for termination of the concession arrangement and payment to the company of the value of any unamortised assets, in addition to compensation for lost earnings. The recoverability of the CGU's net assets was, therefore, also tested with reference to the above value determined in accordance with art. 9 bis of the Concession Arrangement. The resulting amount is higher than the carrying amount of the CGU's net assets as at 31 December 2015.

The impairment tests confirmed that the assets accounted for in the financial statements and allocated to the above CGUs, which in Autostrade per l'Italia's case also includes the value of goodwill, are fully recoverable.

In addition to the above impairment test, sensitivity analyses were conducted on the recoverable values, increasing the above discount rates by 1%, and reducing the average annual rate of traffic growth by 1%. The

results of these analyses have not, in any event, resulted in any material differences with respect to the outcomes of the above tests.

In the case of Autostrade Meridionali, the operator's motorway concession expired on 31 December 2012. The operator is continuing to operate the relevant motorway whilst awaiting the conclusion of the tender process that will select the new operator, which will be required (i) to pay Autostrade Meridionali compensation equal to the unamortised carrying amount of the capital expenditure carried out in the final years of the concession arrangement, and (ii) to assume the obligations relating to sale and purchase agreements entered into by Autostrade Meridionali, excluding those of a financial nature, and to outstanding legal actions and disputes. In this regard, the value of this CGU's net assets is recoverable due to the above obligations to be honoured by the incoming operator.

7.3 Investments €96,865 thousand (€153,845 thousand)

As at 31 December 2015, this item is down €56,980 thousand, primarily due to a combination of the following:

• a) the write-off of the carrying amount of the investment in Compagnia Aerea Italiana as at 31 December 2015, totalling €36,249 thousand;
• b) elimination of the value of the investment in SAT, accounted for at a value of €28,268 thousand, following this company's line-by-line consolidation as a result of the transaction described in note 6.1;
• c) recognition of the Group's share of the results of associates and joint ventures measured using the equity method, resulting in a loss of €23,735 thousand and primarily attributable to Rodovias do Tieté (€20,177 thousand);
• d) capital injections of €17,746 thousand, primarily related to:
  • 1) Compagnia Aerea Italiana (€9,026 thousand), as approved by the extraordinary general meeting of shareholders held on 25 July 2014, in view of Etihad's purchase of an interest in the new airline, "Alitalia – Società Aerea Italiana", controlled by Compagnia Aerea Italiana. The remaining commitment as at 31 December 2015 amounts to €13,618 thousand;
  • 2) the Brazilian operator, Rodovias do Tieté (€7,432 thousand);
• e) the reclassification to investments accounted for at cost or fair value, of the minority interest in Lusoponte, amounting to €15,339 thousand, following its failure to meet the requirements of IFRS 5 for its classification in non-current assets held for sale or related to discontinued operations.

€000	31 December 2014 OPENING BALANCE	CAPITAL INJECTIONS	REVERSALS OF IMPAIRMENTS	MEASURMENT USING EQUITY METHOD		CHANGES IN SCOPE OF CONSOLIDATION	RECLASSIFICATIONS AND OTHER CHANGES	31 December 2015 CLOSING BALANCE
			(IMPAIRMENTS) RECOGNISED IN PROFIT OR LOSS	PROFIT OR LOSS	OTHER COMPREHENSIVE INCOME
Investments accounted for at cost or fair value	72,830	10,314	-36,249		- -	-	15,336	62,231
Investments accounted for using the equity method in:
- associates	38,380	-		- 848	-	-28,268	-1,810	9,150
- joint ventures	42,635	7,432		- -18,506	-6,077	-	-	25,484
Investments	153,845	17,746	-36,249	-17,658	-6,077	-28,268	13,526	96,865

The following table shows an analysis of the Group's principal investments as at 31 December 2015, including the Group's percentage interest and the relevant carrying amount, net of unpaid, called-up issued capital, and showing the original cost and any accumulated revaluations and impairments at the end of the year. There are no investments in associates and joint ventures that are individually material with respect to total consolidated assets, operating activities and geographical area and, therefore, the additional disclosures required in such cases by IFRS 12 are not presented.

€000			31 December 2015		31 December 2014
	% INTEREST	COST	REVERSALS OF IMPAIRMENTS (IMPAIRMENTS)	CARRYING AMOUNT	% INTEREST	COST	REVERSALS OF IMPAIRMENTS (IMPAIRMENTS)	CARRYING AMOUNT
Investments accounted for at cost or fair
value
Tangenziali Esterne di Milano	13.67%	36,034	-1,490	34,544	13.67%	36,034	-1,490	34,544
Lusoponte	17.21%	39,852	-24,513	15,339	-	-	-	-
Compagnia Aerea Italiana	7.02%	162,249	-162,249	-	5.96%	153,223	-126,000	27,223
Tangenziale Esterna	1.25%	5,811	-	5,811	1.25%	4,527	-	4,527
Firenze Parcheggi	5.47%	2,582	-	2,582	5.36%	2,582	-	2,582
S.A.CAL.	16.57%	1,307	-	1,307	16.57%	1,307	-	1,307
Aeroporto di Genova	15.00%	894	-	894	15.00%	894	-	894
Emittente Titoli	7.24%	827	-	827	7.24%	827	-	827
Uirnet	1.51%	427	-	427	1.51%	427	-	427
Veneto Strade	5.00%	258	-	258	5.00%	258	-	258
Other smaller investments	-	242	-	242	-	241	-	241
Investments accounted for using the equity method in:				62,231				72,830
- associates Autostrada Tirrenica (1)	-	-	-	-	24.98%	6,343	21,925	28,268
Società Infrastrutture Toscane (in liquidation)	46.60%	6,990	-182	6,808	46.60%	6,990	-1,368	5,622
Pedemontana Veneta (in liquidation)	29.77%	1,935	-96	1,839	29.77%	1,935	-61	1,874
Bologna & Fiera Parking	36.81%	5,557	-5,411	146	32.50%	5,557	-4,879	678
Arcea Lazio (2)	-	-	-	-	34.00%	1,430	228	1,658
Other smaller investments	-	411	-54	357	-	419	-139	280
- joint ventures
Rodovia do Tieté	50.00%	53,903	-36,205	17,698	50.00%	46,471	-16,028	30,443
Pune Solapur Expressways Private Limited	50.00%	16,426	-9,640	6,786	50.00%	16,426	-5,234	11,192
Geie del Traforo del Monte Bianco	50.00%	1,000	-	1,000	50.00%	1,000	-	1,000
				34,634				81,015
Investments				96,865				153,845

(1) Information on the acquisition of control of Autostrada Tirrenica in 2015 is contained in note 6.1.

(2) The company has been wound up and was struck off the companies' register on 9 December 2015.

Annex 1 provides a list of the Group's investments as at 31 December 2015, as required by CONSOB Communication DEM/6064293 of 28 July 2006.

7.4 Financial assets (non-current)€1,781,276 thousand (€1,756,081 thousand) (current)€818,981 thousand (€962,918 thousand)

The following analysis shows the composition of other financial assets at the beginning and end of the period, together with the current and non-current portions.

		31 December 2015		31 December 2014
€000	CARRYING	CURRENT	NON-CURRENT	CARRYING	CURRENT	NON-CURRENT
	AMOUNT	PORTION	PORTION	AMOUNT	PORTION	PORTION
Takeover rights	403,293	403,293	-	401,716	401,716	-
Guaranteed minimum tolls	610,454	32,218	578,236	637,068	27,217	609,851
Other financial assets deriving from concession rights	188,263	-	188,263	94,496	-	94,496
Financial assets deriving from concession rights ( 1)	1,202,010	435,511	766,499	1,133,280	428,933	704,347
Financial assets deriving from government grants related to construction services ( 1)	330,289	74,627	255,662	294,870	79,847	215,023
Term deposits ( 2)	546,728	221,834	324,894	541,207	250,018	291,189
Derivative assets (3)	60,246	59,684	562	47,596	47,596	-
Other medium/long-term financial assets (1)	442,962	9,303	433,659	564,790	19,268	545,522
Other medium/long-term financial assets	503,208	68,987	434,221	612,386	66,864	545,522
Current derivative assets ( 3)	3 6	3 6	-	-	-	-
Other current financial assets ( 1)	17,986	17,986	-	137,256	137,256	-
Total	2,600,257	818,981	1,781,276	2,718,999	962,918	1,756,081

(1) These assets include financial instruments primarily classified as "loans and receivables" under IAS 39.

The carrying amount is equal to fair value.

(2) These assets have been classified as "available-for-sale" financial instruments and in level 2 of the fair value hierarchy.

The carrying amount is equal to fair value.

(3) These assets primarily include derivative financial instruments classified as hedges under level 2 of the fair value hierarchy.

Financial assets deriving from concession rights include:

• a) takeover rights attributable to Autostrade Meridionali (€403,293 thousand as at 31 December 2015), being the amount payable by a replacement operator on termination of the concession for the company's unamortised capital expenditure during the final years of the outgoing operator's concession;
• b) the present value of the financial asset deriving from concession rights represented by the minimum tolls guaranteed by the Grantor of the concessions held by certain of the Group's Chilean operators (€610,454 thousand);
• c) other financial assets deriving from concession rights (€188,263 thousand as at 31 December 2015), attributable to the Chilean operator, Costanera Norte. In particular, this item regards the financial assets due to this company as a result of carrying out the motorway investment programme named Santiago Centro Oriente ("CC7"), which are subject to revaluation at a real annual rate of 7%. Under the agreements, the increase in toll revenue resulting from the installation of new tollgates along the existing motorway, after deducting the company's contractually agreed share, remains at the company's disposal and are recognised in financial liabilities until such time as it has covered the cost of the related capital expenditure. If, at the end of the concession term, the specific amount at Costanera Norte's disposal, also revalued at a real annual rate of 7%, is lower than the financial assets recognised at that time, the Grantor has the option of either extending the concession term or paying Costanera Norte the remaining net amount due.

The increase of €68,730 thousand in financial assets deriving from concession rights primarily reflects motorway construction services performed by Costanera Norte during the year as part of the CC7 project.

Financial assets deriving from government grants to finance infrastructure works include amounts receivable from grantors or other public entities as grants accruing as a result of construction and maintenance of assets held under concession. This item has increased €35,419 thousand compared with 31 December 2014, essentially due to grants accruing to Autostrade per l'Italia during the period.

Other medium/long-term financial assets are down €109,178 thousand, primarily reflecting a combination of the following:

• a) a reduction in the loan repayable to AB Concessões by Infra Bertin Empreendimentos (€121,722 thousand), reflecting translation differences recognised at the end of the year due to the significant fall in the value of the Brazilian real against the euro in 2015;
• b) Vespucio Sur's receipt of amounts due to it from Chile's Ministry of Public Works, linked to the loss of toll revenue incurred by the company as a result of the delayed opening to traffic of the motorway it operates under concession (€59,890 thousand);
• c) capitalised interest income (€58,799 thousand), relating to the receivable in point a);
• d) new assets arising during the year, totalling €18,570 thousand.

Derivative assets primarily include hedging derivatives. The non-current portion, on the other hand, refers to the fair value of Cross Currency Swaps entered into by Atlantia in January 2015 to hedge the interest rate and currency risk resulting from Atlantia's acquisition of 99.87% of the notes issued by Romulus Finance. This buyback means that the hedges no longer qualify for classification as cash flow hedges in the consolidated financial statements as at 31 December 2015. Further details are provided in note 9.2, "Financial risk management".

Other current financial assets, totalling €17,986 thousand, are down €119,270 thousand. This primarily reflects the consolidation of SAT and the resulting elimination, in the consolidated financial statements, of the short-term loan from Autostrade per l'Italia to this company.

There has been no indication of impairment of any financial assets.

7.5 Deferred tax assets and liabilities

Deferred tax assets €1,574,566 thousand (€1,817,627 thousand) Deferred tax liabilities €1,701,181 thousand (€1,971,818 thousand)

The amount of deferred tax assets and liabilities both eligible and ineligible for offset is shown below, with respect to temporary timing differences between consolidated carrying amounts and the corresponding tax bases at the end of the period.

€000	31 December 2015	31 December 2014
Deferred tax assets	2,175,043	2,438,160
Deferred tax liabilities eligible for offset	-600,477	-620,533
Deferred tax assets less deferred tax liabilities eligible for offset	1,574,566	1,817,627
Deferred tax liabilities not eligible for offset	-1,701,181	-1,971,818
Difference between deferred tax assets and liabilities (eligible and ineligible for offset)	-126,615	-154,191

Changes in the Group's deferred tax assets and liabilities during the period, based on the nature of the temporary differences giving rise to them, are summarised in the following table.

		CHANGES DURING THE YEAR
€000	31 December 2014	PROVISIONS	RELEASES	DEFERRED TAX ASSETS/LIABILITIES ON GAINS AND LOSSES RECOGNISED IN COMPREHENSIVE INCOME	EFFECT OF CHANGE IN TAX RATES RECOGNIZED IN OTHER GAINS/LOSSES IN COMPREHENSIVE INCOME	EFFECT OF CHANGE IN TAX RATES RECOGNIZED IN THE INCOME STATEMENT	CURRENCY TRANSLATION DIFFERENCES AND OTHER CHANGES	31 December 2015
Deferred tax assets on:
Deductible intercompany goodwill	666,281	-	-110,940	-		- -45,615	-	509,726
Operating change in provisions	578,533	130,690	-111,605	-		- -47,050	-182	550,386
Restatement of global balance on application of IFRIC 12 by Autostrade per l'Italia	519,688	1,059	-23,132	-		- -52,091	-	445,524
Losses on hedging derivatives	172,387	-	-95	-3,787	-13,622	-3,670	6	151,219
Perdite fiscalmente riportabili	138,783	13,761	-28,882	-		- -2,537	-795	120,330
Impairments and depreciation of non-current assets	127,522	8,659	-9,841	-		- -5,174	-18,047	103,119
Impairment of receivables and inventories	34,232	9,691	-6,645	-		- -504	-1,356	35,418
Other temporary differences	200,734	101,823	-38,518	2,028	-1,278	-3,275	-2,193	259,321
Total	2,438,160	265,683	-329,658	-1,759	-14,900	-159,916	-22,567	2,175,043
Deferred tax liabilities on:
Differences between carrying amounts and fair values of assets and liabilities acquired through business combinations	-2,002,026	-286	71,436	-		- 117,477	79,439	-1,733,960
Financial assets deriving from concession rights and governaments grants	-187,468	-2,106	2,503	-823		- -	8,021	-179,873
Gains on hedging derivatives	-86,659	-	-	1,376	7,058	-	-2,113	-80,338
Accelerated depreciation	-12,524	-75	6,616	-		- -	17,070	11,087
Other temporary differences	-303,674	-24,940	17,930	4	192	-	-8,086	-318,574
Total	-2,592,351	-27,407	98,485	557	7,250	117,477	94,331	-2,301,658
Difference between deferred tax assets and liabilities (eligible and ineligible for offset)	-154,191	238,276	-231,173	-1,202	-7,650	-42,439	71,764	-126,615

Deferred tax assets primarily include the residual deferred tax assets (€509,726 thousand) recognised in connection with the reversal of intercompany gains arising in 2003 on the contribution of the portfolio of motorways to Autostrade per l'Italia, and those that will be released on a straight-line basis over the life of Autostrade per l'Italia's concession, recognised as a result of the impact on taxation of adoption of IFRIC 12 (€445,524 thousand).

Deferred tax liabilities essentially regard fair value gains recognised on assets acquired as a result of past business combinations (€1,733,960 thousand). They are primarily attributable to the Aeroporti di Roma group and the Group's Chilean and Brazilian motorway operators.

Deferred tax assets have decreased by €263,117 thousand, essentially due to a combination of the following:

• a) the release of €174,816 thousand in deferred tax assets, following approval of the 2016 Stability Law, which has reduced the IRES (corporation tax) rate from 27.5% to 24% with effect from 1 January 2017;
• b) the release of €110,940 thousand in deferred tax assets, following the reversal of the above intercompany gain on the transfer, in 2003, of the portfolio of motorways to Autostrade per l'Italia, equal to the deductible amount of goodwill recognised by this company as a result of the above transaction;
• c) the increase in other temporary differences, amounting to €101,823 thousand, which also includes recognition of deferred tax assets of €49,288 thousand relating to the Brazilian companies' tax deductible goodwill, as a result of the transactions described in note 6.2.

Deferred tax liabilities have decreased by €290,693 thousand, reflecting:

• a) the release of deferred tax liabilities, totalling €124,727 thousand relating to the reduction in the IRES rate introduced by the 2016 Stability Law;
• b) the release of €79,439 thousand in deferred tax liabilities accounted for on gains resulting from business combinations, primarily regarding the Brazilian and Chilean companies and due to the impact of exchange rate movements resulting from the significant fall in the value of the Brazilian real and the Chilean peso against the euro;
• c) the release of €71,436 thousand in deferred tax liabilities accounted for on gains resulting from business combinations in previous years and allocated to concession rights, following recognition of amortisation of the rights for the year.

7.6 Other non-current assets

€13,623 thousand (€12,782 thousand)

This item is in line with the previous year and essentially includes the amount due to the operator, Rodovias MG 050, from the Grantor for the state of Minas Gerais.

7.7 Trading assets €1,468,759 thousand (€1,407,260 thousand)

As at 31 December 2015, trading assets consist of:

• a) inventories of €57,392 thousand as at 31 December 2015 (€59,623 thousand as at 31 December 2014), consisting of stocks and spare parts used in the maintenance or assembly of plant;
• b) contract work in progress, totalling €16,471 thousand (€20,088 thousand as at 31 December 2014);
• c) trade receivables of €1,394,896 thousand (€1,327,549 thousand as at 31 December 2014), the detailed composition of which is shown in the following table.

€000	31 December 2015	31 December 2014
Trade receivables due from:
Motorway users	860,091	828,105
Airport users	265,134	230,444
Sub-operators at motorway service areas	103,309	94,946
Sundry customers	318,360	286,383
Gross trade receivables	1,546,894	1,439,878
Allowance for bad debts	216,474	199,475
Other trading assets	64,476	87,146
Net trade receivables	1,394,896	1,327,549

The most significant changes regard the following:

• a) an increase in receivables due from motorway customers, totalling €31,986 thousand, essentially reflecting an increase in trade receivables at the Chilean companies and including overdue interest on past due receivables;
• b) an increase in receivables due from airport customers, totalling €34,690 thousand, which, in addition to the increase in air traffic, also reflects longer average collection times with respect to airlines;
• c) an increase in amounts due from sundry customers, totalling €31,977 thousand, mainly regarding amounts receivable as a result of construction services performed by Aeroporti di Roma and due from the Civil Aviation Authority ("ENAC"), totalling €13,971 thousand, an increase in fees and payments for transport services due to Telepass (€10,387 thousand) and an increase of €10,145 thousand in amounts due to Autostrade Tech on contract work carried out during the year;
• d) a reduction in other trading assets of €22,670 thousand, essentially reflecting reduced prepayments to suppliers for services provided during the year.

The following table shows an ageing schedule for trade receivables.

€000	Total receivables as at 31 December 2015	Total not yet due	More than 90 days overdue	Between 90 and 365 days overdue	More than one year overdue
Trade receivables	1,546,894	1,066,536	128,918	64,581	286,859

Overdue receivables regard uncollected and unpaid tolls, royalties due from service area operators and sales of other goods and services. The following table shows movements in the allowance for bad debts for trade

receivables in 2015. The allowance has been determined with reference to past experience and historical data regarding losses on receivables, also taking into account guarantee deposits and other collateral given by customers.

€000	31 December 2014	Additions	Uses	Change in scope of consolidation	Reclassifications	and other changes 31 December 2015
Allowance for bad debts	199,475	39,073	-24,475	101	2,300	216,474

The carrying amount of trade receivables approximates to fair value.

7.8 Cash and cash equivalents €2,957,246 thousand (€1,904,996 thousand)

Cash and cash equivalents consists of cash on hand and short-term investments. The balance is €1,052,250 thousand on the figure for 31 December 2014, essentially due to cash generated from operating activities and the new bond issues by Autostrade per l'Italia, partially offset by capital expenditure during the year, outflows relating to the partial buyback of bonds issued by Atlantia and the Parent Company's buyback of 99.87% of the notes issued by Romulus Finance. Detailed explanations of the cash flows resulting in the increase in net cash are contained in note 9.1.

7.9 Current tax assets and liabilities

Current tax assets €43,626 thousand (€41,222 thousand) Current tax liabilities €29,815 thousand (€28,331 thousand)

Current tax assets and liabilities at the beginning and end of the period are detailed below.
€000	Current tax assets Current tax l i abi l i ti es
	31 December 201531 December 2014		31 December 2015 31 December 2014
IRES	11,838	34,444	4,298	127
IRAP	26,683	1,366	30	3,614
Taxes attributable to foreign operations	5,105	5,412	25,487	24,590
Total	43,626	41,222	29,815	28,331

As at 31 December 2015, the Group reports net current tax assets of €13,811 thousand, compared with net current tax assets of €12,891 thousand as at 31 December 2014. During the year, the Group collected €11,125 thousand in amounts due from Sintonia, following a request for a refund of IRES for deductible IRAP, in accordance with art. 6 of Law 2 of 28 January 2009, having participated in the tax consolidation arrangement headed by the former consolidating entity for the tax years 2004-2007. In Addition, a net increase in refundable IRAP, amounting to €28,901 thousand, reflects the fact that payments on account were higher than the effective tax charge for the year, due partly to the deductibility of staff costs for employees hired on permanent contracts, recently introduced by the 2015 Stability Law.

7.10 Other current assets €244,735 thousand (€207,794 thousand)

This item consists of receivables and other current assets that are not eligible for classification as trading or financial. The composition of this item is shown below.

€000	31 December 2015	31 December 2014	INCREASE/ (DECREASE)
Tax credits other than for income tax	60,143	48,435	11,708
Receivables due from end users and insurance companies for damages	24,436	32,933	-8,497
Receivable from public entities	22,867	18,409	4,458
Receivables from social security institutions	1,671	1,325	346
Amounts due from staff	2,479	2,806	-327
Accrued income of a non-trading nature	3,742	3,506	236
Payments on account to suppliers and other current assets	159,145	131,310	27,835
Gross other current assets	274,483	238,724	35,759
Allowance for bad debts	-29,748	-30,930	1,182
Other current assets	244,735	207,794	36,941

The balance as at 31 December 2015 is up €36,941 thousand on the figure for 31 December 2014. The increase primarily reflects a €27,303 thousand increase in "Payments on account to suppliers and other current assets", which include insurance claims made by Aeroporti di Roma, within the minimum limit for claims against its "Fire" policy, to cover the cost of safety and salvage operations, incurred in 2015, in the areas affected by the fire at Fiumicino airport's Terminal 3. The increase in tax credits other than for income tax is primarily attributable to the contribution from Autostrada Tirrenica (€6,988 thousand), following its consolidation.

The allowance for bad debts, totalling €29,748 thousand as at 31 December 2015 (€30,930 thousand as at 31 December 2014), primarily relates to Stalexport Autostrady's accounts receivable (presented in other current assets) from a number of investee companies, which are now insolvent. This follows Stalexport's repayment, in previous years, of loans to the investee companies from local authorities, acting in its capacity of guarantor.

7.11 Non-current assets held for sale or related to discontinued operations €44,985 thousand (€539,354 thousand) Liabilities related to discontinued operations €6,179 thousand (€423,241 thousand)

Net non-current assets held for sale or related to discontinued operations, totalling €38,806 thousand as at 31 December 2015, primarily consist of:

• a) the remaining net assets of the French companies involved in the EcoTaxe project, totalling €34,535 thousand;
• b) the remaining 2% interest in Strada dei Parchi, amounting to €4,271 thousand, that is the subject of put and call options agreed with Toto Costruzioni Generali in the contract governing the sale, in 2011, of a controlling interest in the company.

The following table shows the composition of these assets and liabilities according to their nature (trading, financial or other).

€000	31 December 2015	31 December 2014	INCREASE/ (DECREASE)
Property, plant and equipment	-	1,570	-1,570
Investments	4,271	16,510	-12,239
Financial assets	39,034	297,532	-258,498
- Cash and Cash equivalents	39,021	48,632	-9,611
- Other current financial assets	13	248,900	-248,887
Deferred tax assets	-	2,829	-2,829
Trading assets	7	157,616	-157,609
Other assets	1,673	63,297	-61,624
Assets held for sale or related to discontinued operations	44,985	539,354	-494,369
			-
Financial liabilities	411	287,046	-286,635
Trading liabilities	1,260	71,833	-70,573
Other liabilities	4,508	64,362	-59,854
Liabilities related to discontinued operations	6,179	423,241	-417,062

The reduction in financial and trading assets, totalling €416,107 thousand, is essentially due to the French government's payment of the compensation due as a result of termination of the Partnership Agreement relating to the "EcoTaxe" project, in accordance with the method of calculation set out in the Memorandum of Understanding signed by Ecomouv and the French government. As a result of agreements with the government, the French companies' financial liabilities have also been reduced by €286,635 thousand. The reduction in trading liabilities reflects payment of both amounts due to the suppliers of the Group's French companies and of penalties for early termination of the related contracts following the above early termination of the Partnership Agreement relating to the "EcoTaxe" project. In addition, investments held for sale or related to discontinued operations have decreased as a result of the reclassification of the minority interest in Lusoponte, as it no longer meets the requirements of IFRS 5, as previously indicated in note 7.3.

7.12 Equity €8,482,816 thousand (€8,263,322 thousand)

Atlantia SpA's issued capital as at 31 December 2015 is fully subscribed and paid-in and consists of 825,783,990 ordinary shares with a par value of €1 each, amounting to €825,784 thousand. The issued capital did not undergo any changes in 2015.

Equity attributable to owners of the parent, totalling €6,799,634 thousand, is up €280,692 thousand compared with 31 December 2014. The most important changes during the period are shown in detail in the statement of changes in consolidated equity. These regard:

• a) profit for the year attributable to owners of the parent (€852,527 thousand);
• b) the sale of 9,741,513 treasury shares for a total of €227,952 thousand, compared with a carrying amount of the treasury shares sold of €158,120 thousand. The reduction in treasury shares also reflects the exercise and conversion of a number of options and units awarded under the Group's share-based incentive plans (as described in note 10.6). As at 31 December 2015, Atlantia holds 2,401,753 treasury shares (12,627,801 as at 31 December 2014);
• c) payment of the final dividend for 2014, amounting to €366,309 thousand (€0.445 per share) and the interim dividend for 2015, amounting to €329,345 thousand (€0.400 per share);

d) the other comprehensive loss for the year, amounting to €111,876 thousand, primarily due to the loss on the translation of consolidated companies' assets and liabilities denominated in functional currencies other than the euro, essentially linked primarily to the fall in the value of the Brazilian real against the euro, and the reclassification to profit or loss for the year of the cash flow hedge reserve for the derivative linked to the "£215,000,000 5.441% Class A4 Notes due 2023" issued by Romulus Finance and repurchased by Atlantia, as described in more detail in note 8.18.

Equity attributable to non-controlling interests of €1,683,182 thousand is down €61,198 thousand compared with 31 December 2014 (€1,744,380 thousand). This essentially reflects a combination of the following:

• a) the other comprehensive loss for the year, amounting to €153,377 thousand, primarily linked to the loss on the translation of consolidated companies' assets and liabilities denominated in functional currencies other than the euro, reflecting the above falls in the value of the Brazilian real and Chilean peso against the euro;
• b) the payment of dividends, totalling €29,044 thousand;
• c) profit for the year attributable to non-controlling interests (€121,808 thousand).

Atlantia manages its capital with a view to creating value for shareholders, ensuring the Group can function as a going concern, safeguarding the interests of stakeholders, and providing efficient access to external sources of financing to adequately support the growth of the Group's businesses and fulfil the commitments given in concession arrangements.

Other comprehensive income

The section "Consolidated financial statements" includes the "Statement of comprehensive income", showing after tax other comprehensive income, in addition to the profit for the year.

The following table shows the gross amount and net amounts of components of other comprehensive income including amounts attributable to owners of the parent and non-controlling interests.

Consolidated statement of comprehensive income after taxation

€000	Note	2015	2014
Profit for the year	(A)	974,335	773,488
Fair value gains/(losses) on cash flow hedges		7,329	-112,879
Tax effect on fair value gains/(losses) on cash flow hedges		-8,358	29,128
Gains/(losses) from translation of assets and liabilities of consolidated companies denominated in functional currencies other than the euro		-314,426	-29,231
Gains/(Losses) from translation of investments accounted for using the equity method denominated in functional currencies other than the euro		-6,077	1,806
Other comprehensive income/(loss) for the year reclassifiable to profit or loss	(B)	-321,532	-111,176
Gains/(losses) from actuarial valuations of provisions for employee benefits		6,144	-17,968
Tax effect on gains/(losses) from actuarial valuations of provisions for employee benefits		-1,723	4,685
Other comprehensive income for the year not reclassifiable to profit or loss	(C)	4,421	-13,283
Reclassifications of other components of comprehensive income to profit or loss for the year	(D)	72,835	18,516
Tax effect on reclassifications of other components of comprehensive income to profit or loss for the year		-20,977	-6,172
Total other comprehensive income/(loss) for the year	(E=B+C+D)	-265,253	-112,115
Of which attributable to discontinued operations		5,618	12,344
Comprehensive income for the year	(A+E)	709,082	661,373
Of which attributable to owners of the parent		740,651	638,155
Of which attributable to non-controlling interests		-31,569	23,218

The impact of taxation on other comprehensive income in 2015 reflects the effects of the 2016 Stability Law.

7.13 Provisions for construction services required by contract (non-current) €3,369,243 thousand (€3,783,956 thousand) (current) €441,499 thousand (€499,119 thousand)

Provisions for construction services required by contract represent the residual present value of motorway infrastructure construction and/or upgrade services that certain of the Group's operators, particularly Autostrade per l'Italia, are required to provide and for which no additional economic benefits are received in terms of specific toll increases and/or significant increases in traffic.

The following table shows provisions for construction services required by contract at the beginning and end of the year and changes during 2015, showing the non-current and current portions.

€000		31 December 2014			CHANGES DURING THE YEAR				31 December 2015
	Carrying amount	non-current portion	current portion	Changes due to revised present value of obligations	Financial provisions	Uses to finance works	Government grants accrued on completed works	Currency translation differences and other reclassifications	Carrying amount	non-current portion	current portion
Provisions for construction services required by contract	4,283,075	3,783,956	499,119	9,018	32,393	-542,452	39,957	-11,249	3,810,742	3,369,243	441,499

The reduction in these provisions, including the current and non-current portions, amounts to €472,333 thousand and primarily reflects the use of provisions for construction services completed during the year and for which no additional benefits are received (€502,495 thousand, net of the related government grants) and finance-related provisions accruing in the year (€32,393 thousand), being the double entry to the financial expenses accruing in connection with discounting to present value and recognised in the consolidated income statement.

7.14 Provisions (non-current) €1,500,793 thousand (€1,426,848 thousand) (current) €428,550 thousand (€594,105 thousand)

As at 31 December 2015, provisions amount to €1,929,343 thousand (€2,020,953 thousand as at 31 December 2014). The following table shows details of provisions by type, showing the non-current and current portions.

€000	31 December 2015			31 December 2014
		Carrying amount non-current portion	current portion	Carrying amount non-current portion		current portion
Provisions for employee benefits	175,766	152,437	23,329	191,678	170,010	21,668
Provisions for repair and replacement of motorway infrastructure	1,332,007	1,114,906	217,101	1,359,195	1,029,314	329,881
Provisions for airport refurbishment	- 262,435	161,266	101,169	- 316,324	156,807	159,517
Other provisions	- 159,135	72,184	86,951	- 153,756	70,717	83,039
Total provisions	1,929,343	1,500,793	428,550	2,020,953	1,426,848	594,105

The following table shows provisions at the beginning and end of the period and changes in 2015.

	31 December 2014			31 December 2015
€000	Carrying amount	Operating provisions	Financial provisions	Operating uses and other reductions	Deferred actuarial gains/(losses) recognised in comprehensive income	Currency translation differences, reclassifications and other changes	Changes in scope of consolidation	Carrying amount
Provisions for employee benefits
Post-employment benefits	189,701	1,725	1,690	-13,952	-6,144	-195	812	173,637
Other employee benefits	1,977	663	7	-199		- -319	-	2,129
Total	191,678	2,388	1,697	-14,151	-6,144	-514	812	175,766
Provisions for repair and replacement of motorway infrastructure	1,359,195	336,156	18,553	-372,791	-	-16,707	7,601	1,332,007
Provisions for airport refurbishment	316,324	94,230	2,878	-150,997	-	-	-	262,435
Other provisions
Provisions for impairments exceeding carrying amounts of investments	3,554	38	-	-387		- 349	-	3,554
Provisions for disputes, liabilities and sundry charges	150,202	27,395	-141	-19,498		- -2,377	-	155,581
Total	153,756	27,433	-141	-19,885	-	-2,028	-	159,135
Provisions	2,020,953	460,207	22,987	-557,824	-6,144	-19,249	8,413	1,929,343

PROVISIONS FOR EMPLOYEE BENEFITS (non-current) €152,437 thousand (€170,010 thousand) (current) €23,329 thousand (€21,668 thousand)

As at 31 December 2015, this item consists almost entirely of provisions for post-employment benefits to be paid to staff employed under Italian law.

The reduction of €15,912 thousand is primarily due to the payment of benefits and of advances during the year.

The most important actuarial assumptions used to measure the provision for post-employment benefits at 31 December 2015 are summarised below.

FINANCIAL ASSUMPTIONS
Annual discount rate(*)	1.39%
Annual inflation rate	1.50% for 2016
	1.80% for 2017
	1.70% for 2018
	1.60% for 2019
	2.00% from 2020 on
Annual rate of increase in post	2.625% for 2016
employment benefits	2.850% for 2017
	2.775% for 2018
	2.700% for 2019
	3.000% from 2020 on
Annual rate of increase in real salaries	0.65%
Annual turnover rate	from 0.75% to 6%
Duration (years)	from 7.1 to 17.6

(*)The annual discount rate used to determine the present value of the obligation was determined, in accordance with paragraph 83 of IAS 19, with reference to the average yield curve taken from the Iboxx Corporate AA index on the valuation date for durations of 7-10 years, reflecting the overall duration of the relevant provisions.

	DEMOGRAPHIC ASSUMPTIONS
Mortality	Government General Accounting Office
	projections
Disability	INPS tables by age and sex
Retirement age	Mandatory state pension retirement age

163

The following table shows a sensitivity analysis of provisions for post-employment benefits at the end of the year, based on assumed changes in the individual rates used in the actuarial assumptions.

SENSITIVITY ANALYSIS OF ASSUMPTIONS AS AT 31 DECEMBER 2015
	CHANGE IN ASSUMPTION
€000		TURNOVER RATE		INFLATION RATE	DISCOUNT RATE
	+ 1 %	- 1 %	+ 0.25 %	- 0.25 %	+ 0.25 %	- 0.25 %
Atlantia Group's provision for post-employment benefits	172,925	174,363	175,583	171,733	170,570	176,811

PROVISIONS FOR REPAIR AND REPLACEMENT OF MOTORWAY INFRASTRUCTURE

(non-current) €1,114,906 thousand (€1,029,314 thousand) (current) €217,101 thousand (€329,881 thousand)

This item regards the present value of provisions for the repair and replacement of motorway infrastructure, in accordance with the contractual commitments of the Group's operators. The balance of these provisions is down €27,188 thousand, essentially due to uses (€372,791 thousand) to fund repairs and replacements during the period, partially offset by operating and financial provisions (totalling €354,709 thousand), in part reflecting the positive impact of an increase in the interest rates used to discount to present value.

PROVISIONS FOR REFURBISHMENT OF AIRPORT INFRASTRUCTURE (non-current) €161,266 thousand (€156,807 thousand) (current) €101,169 thousand (€159,517 thousand)

Provisions for the refurbishment of airport infrastructure, including the current and non-current portions, amount to €262,435 thousand (€316,324 thousand as at 31 December 2014). They represent the present value of the estimated costs to be incurred for extraordinary maintenance, repairs and replacements under the contractual obligation provided for in the airport concession arrangement entered into by Aeroporti di Roma. The objective of such services is to ensure that the airport infrastructure is fit for purpose and safe. Compared with 31 December 2014, the provisions have decreased by €53,889 thousand, essentially due to uses to cover work carried out during the period (totalling €150,997 thousand), partially offset by operating and financial provisions of €97,108 thousand. The value of the provisions as at 31 December 2015 includes the estimated cost of reconstruction of the part of Terminal 3 at Fiumicino airport that was struck by the previously mentioned fire. Full details of the fire at Fiumicino airport's Terminal 3 are provided in notes 8.19 and 10.7

OTHER PROVISIONS (non-current) €72,184 thousand (€70,717 thousand) (current) €86,951 thousand (€83,039 thousand)

These provisions essentially regard estimates of liabilities, at the end of the period, expected to be incurred in connection with pending litigation and disputes, including the estimated expenses provisioned for contract reserves relating to contractors who carry out maintenance work. The overall balance at the end of 2015 is almost in line with the figure for 31 December 2014. These provisions also include a prudent assessment, conducted on the basis of the best information currently available, of the liabilities, other than those covered by existing insurance policies, Aeroporti di Roma is likely to be required to pay once final responsibility for the incident has been determined. In this regard, at the date of approval of these consolidated financial statements, a total of approximately 150 claims for compensation have been received from third parties (airlines, handlers, sub-operators and passengers), only partially backed up by an exact quantification of the alleged damages incurred and estimated to amount to a total of approximately €100 million. Full details of the fire at Fiumicino airport's Terminal 3 are provided in notes 8.19 and 10.7.

7.15 Financial liabilities (non-current) €14,044,199 thousand (€13,993,903 thousand) (current) €1,938,634 thousand (€1,168,373 thousand)

MEDIUM/LONG-TERM BORROWINGS (non-current) €14,044,199 thousand (€13,993,903 thousand) (current) €1,649,176 thousand (€920,577 thousand)

The following tables provide an analysis of medium/long-term financial liabilities, showing:

a) an analysis of the balance by face value and maturity (current and non-current portions);

	31 December 2015						31 December 2014
€000	Term
	Face value	Carrying amount	Current portion Non-current	portion	between 13 and 60 months	after 60 months Face value		Carrying amount	Current portion Non-current	portion
Bond issues (1) (2) (3)		11,465,101 11,386,551		1,085,993 10,300,558	1,936,880		8,363,678 10,699,995 10,493,593			162,887 10,330,706
Bank borrowings	3,310,536	3,308,211	191,569	3,116,642	828,549	2,288,093	3,415,785	3,421,849	344,138	3,077,711
Other borrowings	225,801	202,149	62,553	139,596	137,789	1,807	139,242	130,421	65,381	65,040
Medium/long-term borrowings (2) (3)	3,536,337	3,510,360	254,122	3,256,238	966,338	2,289,900	3,555,027	3,552,270	409,519	3,142,751
Derivative liabilities (4)		461,047	-	461,047	15,742	445,305		517,581	2,672	514,909
Accrued expenses on medium/long-term financial liabilities (2)		303,718	303,718		-	- -		340,824	340,824	-
Other financial liabilities		31,699	5,343	26,356	19,273	7,083		10,212	4,675	5,537
Other medium/long-term financial liabilities		335,417	309,061	26,356	19,273	7,083		351,036	345,499	5,537
Total		15,693,375		1,649,176 14,044,199		2,938,233 11,105,966		14,914,480		920,577 13,993,903

(1) The par value of the bond issues hedged by Cross Currency Swaps and IPCA x CDI Swaps is shown at the hedged notional value.

(2) Financial instruments classified as financial liabilities measured at amortised cost in accordance with IAS 39.

(3) Further details of hedged financial liabilities are contained in note 9.2.

(4) Financial instruments classified as hedging derivatives in accordance with IAS 39 and in level 2 of the fair value hierarchy.

b) type of interest rate, maturity and fair value;

		31 December 2015		31 December 2014
€000	Maturity	Carrying amount ( 1)	Fair value (2)	Carrying amount ( 1)	Fair value (2)
Bond issues
- listed fixed rate	from 2016 to 2034	10,568,634	11,766,231	9,581,430	11,064,795
- listed floating rate	from 2016 to 2023	339,574	353,853	481,548	522,269
- unlisted fixed rate	from 2032 to 2038	355,875	486,702	335,980	467,144
- unlisted floating rate	2016	122,468	138,385	94,635	111,473
		11,386,551	12,745,171	10,493,593	12,165,681
Bank borrowings
- fixed rate	from 2016 to 2036	1,843,116	2,131,387	1,853,032	2,174,926
- floating rate	from 2016 to 2034	1,358,871	1,417,437	1,408,307	1,414,296
- non-interest bearing (3)	from 2016 to 2017	106,224	106,224	160,510	160,510
		3,308,211	3,655,048	3,421,849	3,749,732
Other borrowings
- fixed rate	2017	4,672	4,672	6,981	6,981
- floating rate	2016	5,615	5,615	78,031	78,031
- non-interest bearing (4)	from 2016 to 2020	191,862	191,886	45,409	45,404
		202,149	202,173	130,421	130,416
Medium/long-term borrowings		3,510,360	3,857,221	3,552,270	3,880,148
Derivative liabilities		461,047	461,047	517,581	517,581
Accrued expenses on medium/long-term financial liabilities		303,718		340,824
Other financial liabilities		31,699		10,212
Other medium/long-term financial liabilities		335,417		351,036
	Total	15,693,375	17,063,439	14,914,480	16,563,410

(1) The amounts shown in the table for medium/long-term financial liabilities include both the non-current and current portions. (2) The fair value shown is classified in level 2 of the fair value hierarchy.

(3) Figure refers to Autostrade per l'Italia financial assets deriving from governament grants (Law n. 662/1996, n. 135/1997, n. 345/1997) for the infrastructure works carried out on the stretches of motorway "Firenze Nord - Firenze Sud" and "Cà Nova - Aglio (Variante di Valico), which will be reimbursed by ANAS.

(4) Item mainly includes Autostrade per l'Italia's financial liabilities and Stalexport Autostrada Malopolska's financial liabilities recognized on the basis of the related concession agreements as well as SAT's financial liability with "Fondo Centrale di Garanzia" recognized after the Company control acquisition performed during the year 2015.

c) a comparison of the face value of each liability (bond issues and medium/long-term borrowings) and the related carrying amount, by issue currency, showing the corresponding average and effective interest rates;

		31 December 2015			31 December 2014
€000	Face value	Carrying amount	Average interest rate applied to 31 December 2015 (1)	Effextive interest rate to 31 December 2015	Face value	Carrying amount
Euro (EUR)	12,566,143	12,500,409	4.00%	4.41%	11,271,408	11,279,187
Chilean peso (CLP) / Unidad de fomento (UF)	980,482	1,012,924	7.48%	6.92%	1,072,166	1,110,066
Pound sterling (GBP)	750,000	674,140	5.99%	6.26%	1,068,972	841,888
Brazilian real (BRL)	452,699	462,040	14.90%	14.93%	581,686	576,183
Yen (JPY)	149,176	152,014	5.30%	5.48%	149,176	137,387
Polish zloty (PLN)	97,126	89,572	6.41%	6.16%	104,449	93,987
UD dollar (USD)	5,812	5,812	5.25%	5.25%	7,165	7,165
Total	15,001,438	14,896,911	4.85%		14,255,022	14,045,863

(1) This figure includes the impact of interest and foreign currency hedges.

d) movements during the period in the carrying amounts of outstanding bond issues and medium/long-term borrowings.

€000	Carrying amount as at 31 December 2014	New borrowings	Repayments	Buyback of bonds issued by Atlantia and purchase of notes issued by Romulus Finance	Currency translation differences and other changes	Carrying amount as at 31 December 2015
Bond issues	10,493,593	2,758,388	-147,902	-1,637,932	-79,596	11,386,551
Bank borrowings	3,421,849	259,464	-354,616	-	-18,486	3,308,211
Other borrowings	130,421	1,508	-6,474	-	76,694	202,149
Total	14,045,863	3,019,360	-508,992	-1,637,932	-21,388	14,896,911

The Group uses derivative financial instruments to hedge certain current and highly likely future financial liabilities, including interest rate swaps (IRSs), cross currency swaps (CCSs), and Índice Nacional de Preços ao Consumidor Amplo (IPCA) x Certificado de Depósito Interfinanceiro (CDI) Swaps, which are classified as cash flow hedges or fair value hedges pursuant to IAS 39. The fair value of the hedging instruments as at 31 December 2015 is recognised in "Derivative liabilities". More detailed information on financial risks and the manner in which they are managed, in addition to details of outstanding financial instruments held by the Group, is contained in note 9.2 "Financial risk management".

Bond issues (non-current) €10,300,558 thousand (€10,330,706 thousand) (current) €1,085,993 thousand (€162,887 thousand)

This item principally refers to bonds issued by Atlantia as part of its €10 billion Medium Term Note (MTN) programme, accounted for at a total amount of €6,297,919 thousand as at 31 December 2015, and the bonds issued by Autostrade per l'Italia as part of its own Medium Term Note (MTN) Programme, authorised for an amount of up to €7 billion.

The increase of €892,958 thousand primarily reflects:

• a) new bond issues by Autostrade per l'Italia, totalling €2,617,531 thousand, as follows:
  • 1) the issue of bonds to institutional investors, with a total carrying amount of €1,884,610 thousand, as part of the above MTN Programme launched in October 2014; issues were completed in October 2015 (a par value of €650,000 thousand, paying coupon interest of 1.125% and maturing in November 2021 and a par value of €500,000 thousand, paying coupon interest of 1.875% and

maturing in November 2025) and November 2015 (a par value of €750,000 thousand, paying coupon interest of 1.75% and maturing in June 2026);

• 2) the issue of bonds with a carrying amount of €732,921 thousand to retail investors in June 2015 (a par value of €750 million, paying coupon interest of 1.625% and maturing in June 2023);
• b) Rodovia MG050's issue of the new floating rate CDI bonds, with a carrying amount of €142,275 thousand (a par value of €143,226 thousand, paying interest of 15.6% throughout 2015 and maturing in October 2016);
• c) Atlantia's partial buyback of bonds maturing in 2016, 2017, 2019 and 2020 (with a total par value of €1,351,250 thousand);
• d) Atlantia's buyback of 99.87% of the asset-backed securities named "£215,000,000 5.441% per cent Class A4 Notes due 2023" issued by Romulus Finance Srl (totalling €286,682 thousand), with the resulting derecognition of the corresponding financial liability issued by the special purpose entity, consolidated by the Atlantia Group;
• e) redemptions during the period by overseas companies (€147,902 thousand);
• f) the decrease in the value of bonds denominated in foreign currencies as a result of exchange rate movements (€82,130 thousand), primarily reflecting a fall in the value of the Brazilian real against the euro, partially offset by a strengthening of sterling.

With regard to the above bonds issued to retail investors by Autostrade per l'Italia, in February 2015, Autostrade per l'Italia entered into a number of Forward-Starting Interest Rate Swaps with banks, having a notional value of €1,250 million, to hedge interest rate risk associated with the issue of the retail bonds, at a weighted average rate of 0.54%. At the date on which these derivatives were unwound, fair value gains on these instruments totalled €34,849 thousand. €9,678 thousand has been recognised in the financial income, representing the portion exceeding the nominal amount at issue, whilst the remaining €25,171 thousand, corresponding to the hedged portion of the par value of the issue, has been recognised in other comprehensive income and will be reclassified to profit or loss. This amount will be effectively reclassified in line with the interest flows associated with the hedged instrument, in keeping with the nature of the derivatives as cash flow hedges.

The cost of the bond issue, including the above hedges, thus amounts to 1.28%.

Finally, the remaining value of Atlantia's bond issues, amounting to €882,489 thousand and maturing in May 2016, has been reclassified to the current portion of medium/long-term financial liabilities.

Medium/long-term borrowings

(non-current) €3,256,238 thousand (€3,142,751 thousand) (current) €254,122 thousand (€409,519 thousand)

The balance of this item, amounting to €3,510,360 thousand, including the current and non-current portions, is down €41,910 thousand on 31 December 2014, essentially due to a combination of the following:

• a) repayments of €361,090 thousand during the year;
• b) the effect of exchange rate movements on the medium/long-term borrowings of the Chilean companies (€19,106 thousand), reflecting a fall in the value of the Chilean peso against the euro;
• c) new borrowings, totalling €260,972 thousand, which include:
  • 1) use of the line of credit granted by Cassa Depositi e Prestiti to Autostrade per l'Italia (floating rate, maturing in June 2021), totalling €200,000 thousand;
  • 2) use of the line of credit granted by the EIB to Autostrade per l'Italia (at a fixed rate of 1.83%, maturing in September 2036), totalling €50,000 thousand;
• d) an increase (€54,287 thousand) in Autostrade per l'Italia's exposure to ANAS in relation to laws 662/1996, 345/1997 and 135/1997;
• e) Autostrada Tirrenica's debt to the Central Guarantee Fund ("Fondo Centrale di Garanzia"), accounted for at fair value at the date of the company's first-time consolidation and amounting to €16,389 thousand as at 31 December 2015.

A number of the medium/long-term loan agreements include negative pledge provisions, in line with international practice. Under these provisions, it is not possible to create or maintain (unless required to do so by law) collateral guarantees on all or a part of any proprietary assets, with the exception of project debt. The above agreements also require compliance with certain financial covenants.

The method of selecting the variables to compute the ratios is specified in detail in the relevant loan agreements. Breach of these covenants, at the relevant measurement dates, could constitute a default event and result in the lenders calling in the loans, requiring the early repayment of principal, interest and of further sums provided for in the agreements.

The most important covenants are described below:

• a) as regards Autostrade per l'Italia, the loan agreements with Cassa Depositi e Prestiti (totalling €840,744 thousand as at 31 December 2015) require compliance with a minimum threshold for "Operating cash flow available for Debt Service/Debt Service" (DSCR);
• b) as regards Aeroporti di Roma, the company's revolving line of credit require compliance with a maximum leverage ratio (based on the long-term rating assigned to Aeroporti di Roma by the relevant rating agencies) and a minimum Debt Service Coverage Ratio (DSCR).

With regard to the financial commitments of the foreign project companies, the related debt does not envisage recourse to direct or indirect parents and is subject to covenants typical of international practice. The main commitments provide for a pledge on all the project companies' assets and receivables in favour of their creditors.

Non-current derivative liabilities (non-current) €461,047 thousand (€514,909 thousand) (current) - (€2,672 thousand)

This item represents fair value losses on outstanding derivatives as at 31 December 2015 and includes:

a) fair value losses (€308,625 thousand) on Cross Currency Interest Rate Swaps (CCIRSs), linked to both derivative instruments classified as cash flow hedges in accordance with IAS 39, hedging the foreign currency and interest rate risks on medium/long-term bonds issued by Atlantia, denominated in pounds sterling (£500 million) and Japanese yen (¥20 billion) and having a total value in euros of €209,018 thousand, and to derivatives entered into by Aeroporti di Roma (with a total value of €99,607 thousand) to hedge the notes with a par value of £215 million issued by Romulus Finance (the special purpose entity controlled by Aeroporti di Roma), 99.87% of which have been repurchased by Atlantia. These latter derivatives, following the above buyback by the Group, no longer qualify as cash flow hedges in the consolidated financial statements as at and for the year ended 31 December 2015. Fair value losses on these derivatives have declined by a total of €92,463 thousand, essentially reflecting the weakening of the euro against the above currencies (€71,098 thousand), with a matching adjustment

of the hedged liabilities, the payment of differentials during the year and an increase in the interest rates used at 31 December 2015 compared with 31 December 2014 (€21,365 thousand);

• b) fair value losses (€139,961 thousand) on Interest Rate Swaps (IRSs), classified as cash flow hedges in accordance with IAS 39, entered into by certain Group companies to hedge interest rate risk on their existing non-current financial liabilities and those that are highly likely to be assumed in the future. The increase of €35,940 thousand primarily reflects fair value losses on the new Forward-Starting Interest Rate Swaps (€53,567 thousand) entered into by Autostrade per l'Italia with a number of banks and having a total notional value of €2,200 million, variable durations of 6, 7 and 8 years and a weighted average fixed rate of 1.16%, linked to highly likely future financial liabilities to be assumed through to 2017 in order to meet the company's expected financing requirements;
• c) fair value losses on IPCA x CDI Swaps (€12,461 thousand), classified as fair value hedges, previously entered into by Triangulo do Sol and Rodovias das Colinas with the aim of converting bonds issued at a real IPCA rate to a floating nominal CDI rate.

Further details of derivative financial instruments entered into by the Group companies for hedging purposes are contained in note 9.2.

Other medium/long-term financial liabilities (non-current) €26,356 thousand (€5,537 thousand) (current) €309,061 thousand (€345,499 thousand)

The balance of this item, including the current and non-current portions, is down €15,619 thousand, primarily due to a reduction in accrued expenses payable (€37,106 thousand), essentially Atlantia's partial buyback of its own bonds maturing in 2016, 2017, 2019 and 2020. This is offset by an increase in other financial liabilities (€21,487 thousand), essentially linked to deferred financial income (€13,743 thousand).

SHORT-TERM FINANCIAL LIABILITIES €289,458 thousand (€247,796 thousand)

The composition of short-term financial liabilities is shown below.

€000	31 December 2015	31 December 2014
Bank overdrafts	36,654	813
Short-term borrowings	245,353	244,820
Derivative liabilities (1)	7,036	1,034
Intercompany current account payables due to related parties	-	67
Other current financial liabilities	415	1,062
Short-term financial liabilities	289,458	247,796

(1) These liabilities primarily include derivative instruments that do not qualify for hedge accounting and that are classified in level 2 of the fair value hierarchy.

The increase of €41,662 thousand compared with 31 December 2014 primarily reflects the use of short-term current account overdrafts by certain Group companies to meet their working capital requirements.

NET DEBT IN COMPLIANCE WITH ESMA RECOMMENDATION OF 20 MARCH 2013

An analysis of the various components of consolidated net debt is shown below with amounts payable to and receivable from related parties, as required by CONSOB Ruling DEM/6064293 of 28 July 2006, in accordance with European Securities and Markets Authority ("ESMA") Recommendation of 20 March 2013 (which does not entail the deduction of non-current financial assets from debt).

			OF WHICH RELATED
€ M	NOTE	31 December 2015	PARTY 31 December 2014 TRANSACTIONS		PARTY TRANSACTIONS
Cash		-2,251		-1,326
Cash equivalents		-707		-579
Cash and cash equivalents related to discontinued operations		-39		-49
Cash and cash equi val ents (A)		-2,997		-1,954
assets ( 1 ) (B) Current fi nanci al	7.4	-818	- 1	-1,212	-117
Bank overdrafts		37		1
Current portion of medium/long-term financial liabilities		1,649		921
Other financial liabilities		253		247
Financial liabilities related to discontinued operations		-		287
Current fi nanci al assets (C)	7.15	1,939		1,456
Current net debt (D=A+B+C)		-1,876		-1,710
Bond issues		10,301		10,331
Medium/long-term borrowings		3,256		3,143
Other non-current financial liabilities		487		520
Non-current fi nanci al l i abi l i ti es (E)	7.15	14,044		13,994
(Net funds) / Net debt as defi ned by ESMA recommendati on (F =D+E)		12,168		12,284
Non-current fi nanci al assets (G)	7.4	-1,781	-16	-1,756	-10
Net debt (H=F +G)		10,387		10,528

(1) Includes financial assets held for sale or related to discontinued operations.

7.16 Other non-current liabilities €98,778 thousand (€94,742 thousand)

The balance at the end of 2015 is substantially in line with 31 December 2014. The following table shows a breakdown of this item.

€000	31 December 2015	31 December 2014
Accrued expenses of a non-trading nature	38,791	40,662
Liabilities deriving from contractual obligations	26,933	23,012
Amounts payable to grantors	13,681	24,640
Payable to staff	13,526	4,201
Taxation other than income taxes	2,954	-
Other payables	2,893	2,227
Other non-current liabilities	98,778	94,742

7.17 Trading liabilities €1,581,503 thousand (€1,406,019 thousand)

An analysis of trading liabilities is shown below.

€000	31 December 2015	31 December 2014
Liabilities deriving from contract work in progress	3,595	531
Amounts due from customers	845,900	769,512
Payable to operators of interconnecting motorways	619,621	525,344
Tolls in the process of settlement	94,110	93,331
Accrued expenses, deferred income and other trading liabilities	18,277	17,301
Trade payables	1,577,908	1,405,488
Trading liabilities	1,581,503	1,406,019

The increase during the year, amounting to €175,484 thousand, primarily reflects an increase of €94,277 thousand in amounts payable to the operators of interconnecting motorways, primarily attributable to Autostrade per l'Italia. This reflects increases in the operators' toll revenue and is in line with standard payment periods. The increase in trading liabilities is also due to an increase in amounts payable to suppliers, totalling €76,388 thousand. This primarily reflects the greater volume of capital expenditure carried out by Aeroporti di Roma in 2015.

7.18 Other current liabilities €497,802 thousand (€523,686 thousand)

The following table shows a breakdown of this item.

3. Consolidated financial statements as at and for the year ended 31 December 2015

€000	31 December 2015	31 December 2014
Concession fees payable	101,849	99,826
Taxation other than income taxes	94,860	121,197
Payable to staff	61,166	61,064
Guarantee deposits from users who pay by direct debit	47,464	48,255
Social security contributions payable	38,208	36,877
Amounts payable for expropriations	16,514	43,608
Amounts payable to public entities	14,629	17,268
Other payables	123,112	95,591
Other current liabilities	497,802	523,686

The overall reduction of €25,884 thousand primarily reflects a combination of the following:

• a) a reduction in amounts payable for expropriations, totalling €27,094 thousand, recorded by Autostrade per l'Italia, essentially connected to a reduction in new construction projects and a revision of amounts payable as compensation for projects in progress;
• b) a reduction of €26,337 thousand in amounts payable in the form of taxation other than income taxes, essentially reflecting a decrease in the amount payable by Aeroporti di Roma to Lazio Regional Authority in the form of a Regional Tax on Aircraft Noise (IRESA) following a change in the relevant legislation. The above payable has decreased at the same time as the amount billed to airlines by Aeroporti di Roma until 30 June 2015 and no longer due following the change in legislation;
• c) an increase of €27,687 thousand in other payables, partly due to the accrued portion, for 2015, of the extraordinary toll increase applied by Traforo Monte Bianco (€10,694 thousand), which is still awaiting a decision on the use of the resulting funds.

8. NOTES TO THE CONSOLIDATED INCOME STATEMENT

This section contains analyses of the most important consolidated income statement items. Negative components of the income statement are indicated with a minus sign in the headings and tables in the notes, whilst amounts for 2014 are shown in brackets.

It should be noted that, as required by IFRS 5, the contributions of Ecomouv, Ecomouv D&B and Tech Solutions Integrators to the consolidated income statement for both comparative periods have been presented in "Profit/(Loss) from discontinued operations", rather than included in each component of the consolidated income statement for continuing operations

Finally, in 2014, the item "Profit/(Loss) from discontinued operations" benefitted from the contribution to the income statement of the sale of TowerCo, consisting of both the operating result through to the date of deconsolidation and the gain recognised on the sale.

Details of amounts in the consolidated income statement deriving from related party transactions are provided in note 10.5.

8.1 Toll revenue €3,835,954 thousand (€3,677,679 thousand)

"Toll revenue" of €3,835,954 thousand is up €158,275 thousand (4%) on 2014 (€3,677,679 thousand). This primarily reflects:

• a) application of annual toll increases for 2015 by the Group's Italian operators (a rise of 1.46% for Autostrade per l'Italia from 1 January 2015), boosting toll revenue by an estimated €39 million;
• b) a 3.0% improvement in traffic on the Italian network, accounting for an estimated €90 million increase in toll revenue (including the impact of the different traffic mix);
• c) an increase in toll revenue at overseas operators (up €41 million), primarily reflecting traffic growth in Chile (up 6.7%) and Poland (up 8.6%), toll increases applied by the various operators in 2014 and 2015 in accordance with their respective concession arrangements, partially offset by a decline in traffic in Brazil (down 2.1%).

8.2 Aviation revenue €565,312 thousand (519,979 thousand)

This item refers to aviation revenue generated by Aeroporti di Roma and a number of its subsidiaries. It is up €45,333 thousand compared with 2014 (an increase of 9%). This reflects increases in airport fees applied from 1 March 2014 and 1 March 2015 and growth in traffic (passengers up 6.1% and movements up 1.7% in 2015), achieved despite the negative impact of the fire at Fiumicino airport's Terminal 3. An analysis of this item is shown below.

€000	2015	2014	INCREASE/ (DECREASE)
Airport fees	440,174	398,248	41,926
Centralised infrastructure	13,198	13,171	27
Security services	84,313	78,134	6,179
Other	27,627	30,426	-2,799
Aviation revenue	565,312	519,979	45,333

8.3 Revenue from construction services €722,989 thousand (€563,971 thousand)

An analysis of revenue from construction services is shown below.

€000	2015	2014	INCREASE/ (DECREASE)
Revenue from construction services for which additional economic benefits are received	588,560	446,269	142,291
Revenue from investments in financial concession rights	87,895	49,651	38,244
Revenue from construction services: government grants for services for which no additional economic benefits are received	39,957	34,582	5,375
Revenue from construction services provided by sub-operators	6,577	33,469	-26,892
Revenue from construction services	722,989	563,971	159,018

Revenue from construction services essentially consists of construction services for which additional benefits are received and financial assets deriving from concession rights, represented by the fair value of the consideration due in return for the construction and upgrade services rendered in relation to assets held under concession during the year. The consideration is based on the operating costs and financial expenses incurred (the latter solely in relation to investment in assets held under concession) and any margins earned on the services provided by the Group's own technical units.

Revenue from construction services performed during the year is up €159,018 thousand on 2014, reflecting a combination of the following:

• a) an increase in construction services for which additional benefits are received, amounting to €142,291 thousand, primarily due to the greater volume of work carried out by Aeroporti di Roma and Autostrade per l'Italia;
• b) an increase in construction services accounted for as an increase in financial assets deriving from concession rights, amounting to €38,244 thousand, linked to construction carried out under the Santiago Centro Oriente ("CC7") project being implemented by the Chilean operator, Costanera Norte;
• c) a reduction in income resulting from the handover free of charge of buildings located at service areas to Autostrade per l'Italia, following expiry of the related sub-concessions.

In 2015, the Group carried out additional construction services for which no additional benefits are received, amounting to €502,495 thousand, net of related government grants, for which the Group made use of a portion of the specifically allocated "Provisions for construction services required by contract". Uses of these provisions are classified as a reduction in operating costs for the period, as explained in note 8.11. Details of total investment in assets held under concession during the year are provided in note 7.2, above.

8.4 Contract revenue €106,467 thousand (€69,319 thousand)

Contract revenue of €106,467 thousand is up €37,148 thousand on 2014 (€69,319 thousand), essentially due to an increase in work carried out by Pavimental and Electronic Transaction Consultants for external customers.

8.5 Other operating income €789,783 thousand (€782,927 thousand)

An analysis of other operating income is provided below.

€000	2015	2014	INCREASE/ (DECREASE)
Revenue from sub-concessions	356,565	379,509	-22,944
Revenue from Telepass and Viacard fees	134,180	127,466	6,714
Maintenance revenue	40,411	35,155	5,256
Other revenue from motorway operation	35,560	32,046	3,514
Revenue from the sale of technology devices and services	34,717	23,886	10,831
Damages and compensation	34,527	21,948	12,579
Revenue from products related to the airport business	27,733	28,030	-297
Refunds	26,530	23,027	3,503
Advertising revenue	5,091	14,871	-9,780
Other income	94,469	96,989	-2,520
Other operating income	789,783	782,927	6,856

Other operating income of €789,783 thousand is up €6,856 thousand on 2014 (€782,927 thousand), due essentially to a combination of the following:

• a) an increase in damages and compensation, totalling €12,579 thousand, which reflects recognition, based on the best currently available information regarding the incident, of a prudently assessed amount for insurance proceeds covering additional expenses and the cost of rebuilding and salvage work carried out in the areas affected by the fire that struck Terminal 3 at Fiumicino airport. Full details of the incident are provided in notes 8.19 and 10.7;
• b) an increase of €10,831 thousand in sales of equipment and technology services, essentially reflecting sales generated by Autostrade Tech during the year;
• c) an increase in Telepass and Viacard fees, totalling €6,714 thousand;
• d) a €22,944 thousand reduction in revenue from sub-concessions, primarily reflecting the impact on service area royalties of agreements with a number of sub-operators (above all oil service providers), further discounts applied with effect from the second half of 2014 and a reduction in "one-off" payments received in 2015.

8.6 Raw and consumable materials -€378,510 thousand (-€341,955 thousand)

This item, which consists of purchases of materials and the change in inventories of raw and consumable materials, is up €36,555 thousand on 2014. This primarily reflects the greater volume of maintenance and construction work carried out by Pavimental for both the Group's operators and external customers. A breakdown of the balance is shown below.

€000	2015	2014	INCREASE/ (DECREASE)
Construction materials	-223,199	-188,604	-34,595
Electrical and electronic materials	-34,017	-19,101	-14,916
Lubricants and fuel	-39,272	-46,556	7,284
Other raw and consumable materials	-74,633	-88,631	13,998
Cost of materials	-371,121	-342,892	-28,229
Change in inventories of raw, ancillary and consumable materials and goods for resale	-8,605	627	-9,232
Capitalised cost of raw materials	1,216	310	906
Raw and consumable materials	-378,510	-341,955	-36,555

8.7 Service costs -€1,588,584 thousand (-€1,229,454 thousand)

An analysis of service costs is provided below.

€000	2015	2014	INCREASE/ (DECREASE)
Construction and similar	-1,114,412	-831,286	-283,126
Professional services	-133,732	-87,628	-46,104
Transport and similar	-60,595	-52,277	-8,318
Utilities	-51,495	-50,858	-637
Insurance	-33,966	-25,904	-8,062
Statutory Auditors' fees	-1,547	-1,602	55
Other services	-197,371	-180,833	-16,538
Gross service costs	-1,593,118	-1,230,388	-362,730
Capitalised service costs for assets other than concession assets	4,534	934	3,600
Service costs	-1,588,584	-1,229,454	-359,130

Service costs rose €359,130 thousand in 2015, compared with 2014. The cost of construction and similar services is up €283,126 thousand, essentially due to increases in investment in assets held under concession and in motorway maintenance work. The €46,104 thousand rise in the cost of professional services reflects an increase in airport design work and investment by Spea Engineering.

8.8 Staff costs -€862,070 thousand (-€786,211 thousand)

An analysis of staff costs is shown below.

€000	2015	2014	INCREASE/ (DECREASE)
Wages and salaries	-605,472	-555,282	-50,190
Social security contributions	-172,392	-160,092	-12,300
Payments to supplementary pension funds, INPS and post-employment benefits	-33,760	-31,176	-2,584
Directors' remuneration	-6,218	-5,646	-572
Other staff costs	-47,922	-34,933	-12,989
Gross staff costs	-865,764	-787,129	-78,635
Capitalised staff costs for assets other than concession assets	3,694	918	2,776
Staff costs	-862,070	-786,211	-75,859

Gross staff costs of €865,764 thousand are up €78,635 thousand (10%) on 2014 (€787,129 thousand), primarily due to the following:

• a) an increase in the average workforce, primarily linked to the insourcing of cleaning services at Fiumicino and Ciampino airports, which began in 2014, and of routine maintenance at Triangulo do Sol and Colinas, to the staff hired in connection with implementation of the airport development plan and with improvements to passenger assistance provided by Aeroporti di Roma, and the start-up of work on new contracts by Pavimental;
• b) an increase in the average unit cost, partly due to the cost of contract renewals, management incentive plans and early retirement incentives paid by the Italian companies, partially offset by the recruitment of staff on different forms of contract at Airport Cleaning and the Brazilian companies.

The following table shows the average number of employees (by category and including agency staff), as commented on in the section on the "Workforce" in the report on operations:

AVERAGE WORKFORCE	2015(*)	2014(*)	INCREASE/ (DECREASE)
Senior managers	242	240	2
Middle managers and administrative staff	7,443	7,184	259
Toll collectors	3,226	3,281	-55
Manual workers	3,689	2,956	733
Total	14,600	13,661	939

(*) The figures for both comparative periods do not include staff employed by the companies whose the related staff costs have been classified i n "Profit/(Loss) from discontinued operations", as explained in note 8.16.

8.9 Other operating costs -€601,213 thousand (-€561,650 thousand)

An analysis of other operating costs is shown below.

€000	2015	2014	INCREASE/ (DECREASE)
Concession fees	-477,022	-462,254	-14,768
Lease expense	-16,466	-14,576	-1,890
Grants and donations	-34,371	-30,943	-3,428
Direct and indirect taxes	-23,161	-20,032	-3,129
Other	-50,193	-33,845	-16,348
Other costs	-107,725	-84,820	-22,905
Other operating costs	-601,213	-561,650	-39,563

Other operating costs are up €39,563 thousand, primarily reflecting the increase in the concession fees payable by the Italian motorway operators as a result of the traffic growth registered in 2015, and the increase of €16,348 thousand in other costs, including the contract reserves paid to contractors by Autostrade per l'Italia following the opening to traffic of the Variante di Valico.

8.10 Operating change in provisions -€76,086 thousand (-€263,941 thousand)

This item consists of operating changes (new provisions and uses) in provisions, excluding those for employee benefits (classified in staff costs), made by Group companies during the period in order to meet their legal and contractual obligations requiring the use of financial resources in future years. The balance of this item for 2015, totalling €76,086 thousand, consists of:

• a) €103,481 thousand, linked to the positive impact of changes in provisions for the repair and replacement of motorway infrastructure and for the refurbishment of airport infrastructure, primarily relating to an increase in the discount rate applied at 31 December 2015, compared with the rate applied at 31 December 2014;
• b) provisions for the year of €27,395 thousand, including, among other things, those to cover the estimated cost of reconstruction of the areas affected by the fire at Fiumicino airport's Terminal 3, based on expert assessments for design purposes, after deducting the best estimate of the insurance proceeds receivable in order to cover this type of damage.

8.11 Use of provisions for construction services required by contract €502,495 thousand (€406,613 thousand)

This item regards the use of provisions for construction services required by contract, relating to services for which no additional economic benefits are received rendered in 2015, less accrued government grants (recognised in revenue from construction services, as explained in note 8.3). The item represents the indirect adjustment to construction costs classified by nature and incurred by the Group's operators, above all Autostrade per l'Italia, whose concesssion arrangements provide for such obligations. The increase of €95,882 thousand is broadly linked to increased investment in the upgrade of the A1 on the section between Bologna and Florence. This reflects completion of the motorway in view of the opening to traffic of the Variante di Valico. Further information on construction services and capital expenditure in 2015 is provided in notes 7.2 e n. 8.3.

8.12 (Impairment losses) and reversals of impairment losses -€11,181 thousand (-€10,701 thousand)

The balance for 2015 essentially consists of the impairment (€5,801 thousand) of short-term financial assets deriving from concession rights, in keeping with a revised estimate of the value of the takeover right due to Autostrade Meridionali under the relevant concession arrangement. This company continues to operate the section of motorway under an extension of its concession term, as described in note 10.7.

8.13 Financial income/(expenses) -€784,954 thousand (-€679,907 thousand)

Financial income €339,870 thousand (€328,351 thousand) Financial expenses -€1,145,343 thousand (-€1,025,594 thousand) Foreign exchange gains/(losses) €20,519 thousand (€17,336 thousand)

An analysis of financial income and expenses is shown below.

€000	2015	2014	INCREASE/ (DECREASE)
Financial income accounted for as an increase in financial assets deriving from concession rights and government grants	63,437	56,241	7,196
Dividends received from investees	3,497	101	3,396
Income from derivative financial instruments	111,034	70,417	40,617
Financial income linked to agreements with the Bertin group	-	50,067	-50,067
Financial income accounted for as an increase in financial assets	61,722	48,582	13,140
Interest and fees receivable on bank and post office deposits	31,131	49,932	-18,801
Other	69,049	53,011	16,038
Other financial income	272,936	272,009	927
Financial income (a)	339,870	328,351	11,519
Financial expenses from discounting of provisions for construction services required by contract and other provisions	-55,521	-116,269	60,748
Expenses on bonds	-490,299	-571,997	81,698
Losses on derivative financial instruments	-132,259	-116,916	-15,343
Interest on medium/long-term borrowings	-115,190	-111,292	-3,898
Impairment losses on investments carried at cost or fair value and non-current financial assets	-36,324	-44,138	7,814
Interest expense accounted for as an increase in financial liabilities	-25,350	-21,548	-3,802
Interest and fees payable on bank and post office deposits	-2,237	-1,124	-1,113
Other	-288,398	-42,310	-246,088
of which non-recurring	-233,509	-	-233,509
Other financial expenses	-1,090,057	-909,325	-180,732
Capitalised financial expenses on assets held under concession	235	-	235
Financial expenses (b)	-1,145,343	-1,025,594	-119,749
Foreign exchange gains/(losses) (c)	20,519	17,336	3,183
Financial income/(expenses) (a+b+c)	-784,954	-679,907	-105,047

The increase in net financial expenses essentially reflects the non-recurring financial transactions carried out, relating to the partial buyback of certain bonds issued by Atlantia and Atlantia's buyback of notes issued by Romulus Finance. Details of these transactions and of the composition of non-recurring financial expenses in 2015 (amounting to €233,509 thousand) are provided in note 8.18.

After stripping out the impact of the non-recurring financial transactions, net financial expenses are down as a result of the following:

• a) reductions in interest expense and in net financial expenses payable by the companies operating in Italy (totalling €103,139 thousand), reflecting a reduction in average net debt compared with 2014 and the decrease in borrowing costs linked to Atlantia's redemption of bonds with a par value of €2,094,200 thousand in June 2014 and the above-mentioned non-recurring financial transactions;
• b) a reduction in financial expenses from discounting of provisions for construction services required by contract and other provisions (€60,748 thousand), due to a reduction in the interest rates used at 31 December 2014, compared with the rates used at 31 December 2013;
• c) a €9,668 thousand increase (at constant exchange rate) in interest income and net financial income received by the companies operating in Brazil and Chile, essentially due to an increase in average cash holdings and the greater average yield on the medium/long-term loan from AB Concessões to Infra Bertin Empreendimentos;
• d) the recognition of financial income by Autostrade do Brasil (€50,067 thousand) in 2014, linked to the agreements entered into with the Bertin Group in connection with the acquisition of the Brazilian operators in 2012, which also provided for an earn-out adjustment based on the effective toll revenue of Triangulo do Sol, Rodovias das Colinas and Tieté during the three-year period 2012-2014.

8.14 Share of profit/(loss) of investees accounted for using the equity method -€17,658 thousand (-€9,157 thousand)

The "Share of (profit)/loss of investees accounted for using the equity method" amounts to a loss of €17,658 thousand, essentially attributable to the share of the losses reported by the operators, Rodovias do Tiete (€13,307 thousand) and Pune Solapur (€5,199 thousand) for 2015, partially by the positive results of other associates.

8.15 Income tax (expense)/benefit -€470,962 thousand (-€552,594 thousand)

A comparison of the tax charges for the two comparative periods is shown below.

€000	2015	2014	INCREASE/ (DECREASE)
IRES	-315,053	-287,840	-27,213
IRAP	-78,187	-105,044	26,857
Income taxes attributable to foreign operations	-71,488	-74,115	2,627
Current tax benefit of tax loss carry-forwards	4,467	5,632	-1,165
Current tax expense	-460,261	-461,367	1,106
Recovery of previous years' income taxes	7,362	5,760	1,602
Previous years' income taxes	2,847	-5,286	8,133
Differences on income taxes for previous years	10,209	474	9,735
Provisions	265,683	263,715	1,968
Releases	-311,489	-284,023	-27,466
Changes in prior year estimates	-157,075	35,298	-192,373
Deferred tax income	-202,881	14,990	-217,871
Provisions	-27,407	-38,412	11,005
Releases	98,485	81,449	17,036
Changes in prior year estimates	110,893	-149,728	260,621
Deferred tax expense	181,971	-106,691	288,662
Income tax (expense)/benefit	-470,962	-552,594	81,632

Income tax expense amounts to €470,962 thousand, down €81,632 thousand on the figure for 2014 (€552,594 thousand). This essentially reflects a combination of the following:

• a) the recognition, in 2014, of deferred tax liabilities of €107,093 thousand, following the tax reforms approved by the Chilean parliament, which increased corporation tax rates from 21% in 2014 to 25% from 2017;
• b) recognition, in 2015, of deferred tax assets of €49,288 thousand, resulting from the corporate restructuring carried out by the Brazilian sub-holding company, AB Concessoes, which has enabled the Brazilian motorway operators to recognise tax-deductible goodwill, as descriobed in note 6.2;
• c) the benefits of application of the 2015 Stability Law, estimated at €19,974 thousand;
• d) recognition, in 2015, of net deferred tax expense of €42,439 thousand, following the reduction in the IRES (corporation tax) rate from 27.5% to 24% with effect from 1 January 2017, introduced by the 2016 Stability Law, which resulted in a reassessment of the Group's net deferred tax assets and liabilities.

The following table shows a reconciliation of the Statutory rate of IRES with the effective charge in the two comparative periods.

€000	2015 BEFORE TAX TAX				2014
			TAX RATE	BEFORE TAX	TAX	TAX RATE
Pre-tax profit/(loss) from continuing operations	1,438,314			1,261,545
Tax expense computed using statutory rate applied by Parent Company		395,536	27.5%		346,925	27.5%
Temporary differences deductible in future years	717,714	192,842	13.4%	854,558	228,795	18.1%
Temporary differences taxable in future years	-100,912	-25,649	-1.8%	-141,805	-34,261	-2.7%
Reversal of prior year temporary differences	-762,460	-196,790	-13.7%	-687,411	-177,251	-14.1%
Permanent differences	78,306	18,610	1.3%	-36,620	-7,341	-0.6%
Effect on taxation of application of different rates in various foreign countries		-2,475	-0.2%	-1,948	-543	-
IRAP		78,187	5.4%		105,044	8.3%
TOTAL		460,261	32.0%		461,367	36.6%

8.16 Profit/(Loss) from discontinued operations €6,983 thousand (€64,537 thousand)

An analysis of the net profit from discontinued operations for the two comparative periods is shown below.

€000	2015	2014	Increase/ (Decrease)
Operating income	-	214,636	-214,636
Operating costs	-5,251	-178,159	172,908
Financial income	10,730	12,891	-2,161
Financial expenses	-11,541	-50,953	39,412
Tax benefit/(expense)	13,045	-6,953	19,998
Net contribution to net profit of discontinued operations	6,983	-8,538	15,521
After-tax profit/(loss) on disposals	-	69,718	-69,718
Other net profit/(loss) from discontinued operations	-	3,357	-3,357
Profit/(Loss) from discontinued operations	6,983	64,537	-57,554

3. Consolidated financial statements as at and for the year ended 31 December 2015

Both comparative periods reflect the resulyts of the French companies engaged in the "Ecotaxe" project, classified in accordance with IFRS 5 following early termination of the project, as previously described in the consolidated financial statements as at and for the year ended 31 December 2014. In addition, the amount for 2014 included the result of the sale of TowerCo, including both the operating results through to the company's deconsolidation and the gain recognised in the consolidated financial statements, totalling €69,795 thousand after the related taxation.

8.17 Earnings per share

The following table shows the calculation of basic and diluted earnings per share for the two comparative periods.

	2015	2014
Weighted average of shares outstanding	825,783,990	825,783,990
Weighted average of treasury shares in portfolio	-4,456,170	-12,765,737
Weighted average of shares outstanding for the calculation of basic earnings per share	821,327,820	813,018,253
Weighted average of diluted shares held under share-based incentive plans	1,381,762	1,145,986
Weighted average of all shares outstanding for the calculation of diluted earnings per share	822,709,582	814,164,239
Profit for the year attributable to owners of the parent (€000)	852,527	740,252
Basic earnings per share (€)	1.04	0.91
Diluted earnings per share (€)	1.04	0.91
Profit from continuing operations attributable to owners of the parent (€000)	847,482	673,113
Basic earnings per share from continuing operations (€)	1.03	0.83
Diluted earnings per share from continuing operations (€)	1.03	0.83
Profit from discontinued operations attributable to owners of the parent (€000)	5,045	67,139
Basic earnings/(losses) per share from discontinued operations (€)	0.01	0.08
Diluted earnings/(losses) per share from discontinued operations (€)	0.01	0.08

The weighted number of treasury shares held by the Group is down compared with 2014, due to both the exercise and conversion of a number of options and units awarded under the Group's share-based incentive plans, as described in greater detail in note 10.6, and the impact of the sale of 9,741,513 treasury shares to institutional investors, as described in note 7.12.

8.18 Material non-recurring transactions

During 2015, the Group concluded the following non-recurring financial transactions:

• a) Atlantia's buyback of 99.87% of the asset-backed securities (ABS CLASS A4) issued by Romulus Finance (the special purpose entity controlled by Aeroporti di Roma and consolidated in the Atlantia Group), resulting in non-recurring net financial expenses of €112,832 thousand, before the related taxation;
• b) the partial buyback of bonds issued by Atlantia and maturing in 2016, 2017, 2019 and 2020, resulting in non-recurring net financial expenses of €120,677 thousand, before the related taxation.

With regard to the first transaction, in January 2015 Atlantia launched voluntary cash tender offer, governed by English law, for all the asset backed securities named "£215,000,000 5.441% per cent Class A4 Notes due 2023" issued by Romulus Finance. At the end of the offer period, acceptances had been received for 99.87% of the total securities in issue at a total cost of €286,682 thousand. Completion of the transaction on 27 January 2015 resulted in the recognition of non-recurring financial expenses of €112,832 thousand, which breaks down as follows:

• a) €60,203 thousand relating to the premium paid by Atlantia to Romulus Finance's noteholders to purchase the securities in issue;
• b) €66,069 thousand, relating to reclassification to profit or loss of fair value losses on the cash flow hedges entered into to hedge the notes issued by Romulus, as they no longer qualify as cash flow hedges;
• c) €25,011 thousand accounted for as a reduction in financial expenses, deriving from the reclassification, to profit or loss, of the residual fair value accounted for as an adjustment of the carrying amount of the notes, at the date of Atlantia's acquisition of the former Gemina group companies;
• d) the cost of terminating the guarantee for the notes issued by Romulus Finance, resulting in recognition of financial expense of €11,571 thousand.

In 2015, Atlantia then launched tender offers with the aim of partially repurchasing the following bonds issued by the Company.

The first tender offer, in February 2015, was aimed at holders of the following bonds:

a) 5.625%, having a total par value of €1,500,000 thousand, maturing 2016 ("Bonds due 2016");

b) 3.375%, having a total par value of €1,000,000 thousand, maturing 2017 ("Bonds due 2017");

c) 4.500%, having a total par value of €1,000,000 thousand, maturing 2019 ("Bonds due 2019").

The tender offer closed on 25 February 2015, with the par value of the repurchased bonds totalling €1,020,130 thousand, compared with a total purchase price of €1,102,245 thousand, inclusive of a premium of €82,115 thousand paid to bondholders accepting the offer.

The second tender offer, in December 2015, was aimed at holders of the following bonds:

a) 3.375%, having a total par value of €1,000,000 thousand, maturing 2017 ("Bonds due 2017");

b) 4.500%, having a total par value of €1,000,000 thousand, maturing 2019 ("Bonds due 2019");

c) 4.375%, having a total par value of €750,000 thousand, maturing 2020 ("Bonds due 2020").

The tender offer closed in December 2015, with the par value of the repurchased bonds totalling €331,120 thousand, compared with a total purchase price of €369,682 thousand, including a premium of €38,562 thousand paid to bondholders accepting the offer.

As a result of the above financial transactions, the Group has recognised financial expenses of €233,509 thousand, before the related taxation of €67,568 thousand. This results in a net impact on the result for the year of €165,941 thousand. In this regard, it should be noted that, in return for the net financial expenses incurred in 2015 as a result of the above non-recurring financial transactions, in present and future years the Group will benefit from an equivalent reduction in its cost of debt.

8.19 Material non-recurring events

The fire that broke out in Terminal 3 at Fiumicino airport, operated by Aeroporti di Roma, in May 2015 has resulted in a loss of aviation and non-aviation revenue, additional expenses for safety procedures and the need to make specific provisions, all of which having an impact on the operating results.

In particular, Aeroporti di Roma has incurred the cost of the safety and salvage procedures carried out in the areas affected by the fire, partially covered by recognition, in other operating income, of prudently assessed insurance proceeds (including €5 million already received in advance).

With regard to the cost of rebuilding the damaged infrastructure, provisions for the year include the estimated cost of reconstruction of the areas affected by the fire, based on expert assessments for design purposes, partially covered by the recognition of insurance proceeds payable under an existing policy.

Provisions have been made to cover third-party claims for damages, calculated on the basis of the best information currently available, of the liabilities, other than those covered by existing insurance policies, the company is likely to be required to pay once final responsibility for the incident has been determined. Finally, it should be noted that the operating performance was influenced by the loss of aviation and nonaviation revenue caused by the fire and that Aeroporti di Roma immediately proceeded to claim on its insurance policies and which also cover the loss of income resulting from business interruption. However, given that the entity of the damage is still being assessed, no insurance proceeds covering such a loss have been recognised in these consolidated financial statements.

Further information on the fire is provided in the section, "Significant legal and regulatory aspects", in note 10.7.

9. OTHER FINANCIAL INFORMATION

9.1 Notes to the consolidated statement of cash flows

Consolidated cash flow in 2015, compared with 2014, is analysed below. The consolidated statement of cash flows is included in the "Consolidated financial statements".

Cash flows during 2015 resulted in an increase of €1,066,865 thousand in cash and cash equivalents, versus a net cash outflow of €2,440,731 thousand in 2014.

Operating activities generated cash flows of €2,210,820 thousand in 2015, up €387,512 thousand on the figure for 2014 (€1,823,308 thousand). The increase is primarily attributable to the inflow generated from working capital and other non-financial assets and liabilities, totalling €105,718 thousand, compared with an outflow of €256,016 thousand in 2014. This differing performance primarily reflects collection, in March 2015, of compensation payable by the French government, following early termination of the "EcoTaxe" project in 2014, following the signature, in June 2014, of a memorandum of understanding with the French government.

Cash used in investing activities, totalling €1,340,525 thousand (€716,174 thousand in 2014), essentially regards the following:

• a) investment in assets held under concession, after the related government grants and the increase in financial assets deriving from concession rights, totalling €1,200,954 thousand;
• b) investment in property, plant and equipment, totalling €95,525 thousand, primarily attributable to Autostrade per l'Italia, Aeroporti di Roma and Pavimental;
• c) the amount invested in order to acquire a controlling interest in SAT (amounting to €71,674 thousand), including the outflow incurred in 2015 to fund the purchase of a 74.95% interest, after the cash and cash equivalents contributed by the company.

Net cash generated by financing activities amounts to €172,578 thousand for 2015, whilst 2014 recorded an outflow of €3,550,706 thousand as a result of the redemption of bonds and the repayment of borrowings.

The following table shows net cash flows generated from discontinued operations, including the contributions of the French companies (Ecomouv, Ecomouv D&B and Tech Solutions Integrators) in the two comparative periods and TowerCo's contribution for 2014, through to this company's deconsolidation. These cash flows are included in the consolidated statement of cash flows under operating, investing and financing activities.

Cash flows from discontinued operations

Cash flows from discontinued operations
€ M	2015	2014
Net cash generated from/(used in) operating activities	96	-192
Net cash generated from/(used in) investing activities	247	404
Net cash generated from/(used in) financing activities	-280	-193

9.2 Financial risk management

The Atlantia Group's financial risk management objectives and policies

In the normal course of business, the Atlantia Group is exposed to:

• a) market risk, principally linked to the effect of movements in interest and foreign exchange rates on financial assets acquired and financial liabilities assumed;
• b) liquidity risk, with regard to ensuring the availability of sufficient financial resources to fund the Group's operating activities and repayment of the liabilities assumed;

c) credit risk, linked to both ordinary trading relations and the likelihood of defaults by financial counterparties.

The Atlantia Group's financial risk management strategy is derived from and consistent with the business goals set by the Atlantia Board of Directors, as contained in the various long-term plans prepared each year.

Market risk

The adopted strategy for each type of risk aims, wherever possible, to eliminate interest rate and currency risks and minimise borrowing costs, whilst taking account of stakeholders' interests, as defined in the Financial Policy as approved by Atlantia's Board of Directors.

Management of these risks is based on prudence and best market practice.

The main objectives set out in this policy are as follows:

• a) to protect the scenario forming the basis of the long-term plan from the effect of exposure to currency and interest rate risks, identifying the best combination of fixed and floating rates;
• b) to pursue a potential reduction of the Group's borrowing costs within the risk limits determined by the Board of Directors;
• c) to manage derivative financial instruments taking account of their potential impact on the results of operations and financial position in relation to their classification and presentation.

The Group's hedges outstanding as at 31 December 2015 are classified, in accordance with IAS 39, either as cash flow or fair value hedges, depending on the type of risk hedged. Fair value measurement of derivative financial instruments is dealt with in note 3. The residual average term to maturity of the Group's debt as at 31 December 2015 is approximately 6 years and 6 months. The average cost of medium to long-term debt for 2015 was 4.5% (4.2% for the companies operating in Italy, 7.5% for the Chilean companies and 14.9% for the Brazilian companies). Monitoring is, moreover, intended to assess, on a continuing basis, counterparty creditworthiness and the degree of risk concentration.

Interest rate risk

This risk is linked to uncertainty regarding the performance of interest rates, and takes two forms:

• a) cash flow risk: linked to financial assets and liabilities with cash flows indexed to a market interest rate. In order to reduce the amount of floating rate debt, the Group has entered into interest rate swaps (IRSs), classified as cash flow hedges. The hedging instruments and the underlying financial liabilities have matching terms to maturity and notional amounts. Following tests of effectiveness, changes in fair value are essentially recognised in other comprehensive income. The tests conducted revealed the presence of a minimal ineffective portion (€966 thousand), accounted for in profit or loss and linked primarily to the impact of IFRS 13 on the new Forward-Starting IRSs with a total notional value of €2,200 million, variable durations of 6, 7 and 8 years and a weighted average fixed rate of 1.16%, entered into to hedge highly likely future financial liabilities to be assumed through to 2017 in order to meet Autostrade per l'Italia's expected financing requirements. Interest income or expense deriving from the hedged instruments is recognised simultaneously in profit or loss;
• b) fair value risk: the risk of losses deriving from an unexpected change in the value fixed rate financial assets and liabilities following an unfavourable shift in the market yield curve. As at 31 December 2015, the Group reports transactions classifiable as fair value hedges in accordance with IAS 39, regarding the previously mentioned new IPCA Linked Swaps entered into by the Brazilian companies, Triangulo do Sol and Colinas, with the aim of converting the real IPCA rate bonds issued in 2013 to a floating CDI rate. Changes in the fair value of these instruments are recognised in profit or loss and are offset by matching changes in the fair value of the underlying liabilities.

As a result of cash flow hedges, 92% of interest bearing debt is fixed rate.

Currency risk

Currency risk can result in the following types of exposure:

• a) economic exposure incurred through purchases and sales denominated in currencies other than the company's functional currency;
• b) translation exposure through equity investments in subsidiaries and associates whose financial statements are denominated in a currency other than the euro;
• c) transaction exposure incurred by making deposits or obtaining loans in currencies other than the currency in which financial statements are denominated.

The Group's prime objective of currency risk is to minimise transaction exposure through the assumption of liabilities in currencies other than the presentation currency. Cross currency swaps (CCIRS) with notional amounts and maturities matching those of the underlying financial liabilities have been entered into specifically to eliminate the currency risk to which the sterling and yen-denominated bonds issued by Atlantia are exposed. These swaps also qualify as cash flow hedges and tests have shown that they are fully effective.

Following Atlantia's buyback of 99.87% of the sterling-denominated notes, amounting to £215 million, issued by Romulus Finance (the special purpose entity controlled by Aeroporti di Roma), the Cross Currency Swaps entered into by Atlantia and Aeroporti di Roma to hedge interest and currency risk associated with the underlying in foreign currency, no longer qualify for hedge accounting in the consolidated financial statements. The fair value, recognised in the other comprehensive income of the respective companies (as at 31 December 2015, amounting to €61 million) has, therefore, been accounted for in profit or loss in the consolidated financial statements.

16% of the Group's debt is denominated in currencies other than the euro. Taking account of foreign exchange hedges and the proportion of debt denominated in the local currency of the country in which the relevant Group company operates (around 10%), the Group is effectively not exposed to currency risk on translation.

The following table summarises outstanding derivative financial instruments as at 31 December 2015 (compared with 31 December 2014) and shows the corresponding market and notional values of the hedged financial asset or liability.

€000		31 December 2015		31 December 2014
Type	Purpose of hedge	Fair value asset/(liability)	Notional amount	Fair value asset/(liability)	Notional amount
Cash flow hedges (1)
Cross Currency Swaps	Currency and interest rate risk	-209,018	899,176	-401,088 (2)	1,224,195
Interest Rate Swaps	Interest rate risk	-146,997	3,132,107	-115,119	942,591
	Total cash flow hedges	-356,015	4,031,283	-516,207	2,166,786
Fair value hedges (1) IPCA x CDI Swaps Derivatives not accounted for as hedges	Interest rate risk	-12,461	154,954	-9,800	225,670
Cross Currency Swaps (1)	Currency and interest rate risk	-99,045	611,701	-	-
FX Forwards	Currency risk	36 (3)	35,914	-1,034 (3)	31,230
	Total derivatives not accounted for as hedges	-99,009	647,615	-1,034	31,230
TOTAL		-467,485	4,833,852	-527,041	2,423,686
	fair value (asset) fair value (liability)	598 -468,083		- -527,041

(1) The fair value of cash flow hedges excludes accruals at the measurement date.

(2) As at 31 December 2014, this included the fair value of derivatives entered into by Aeroporti di Roma to hedge currency risk associated with the Class A4 notes issued by Romulus Finance in pounds sterling, which no longer qualify for hedge accounting as at 31 December 2015 following Atlantia's repurchase of 99.87% of the notes.

(3) The fair value of these derivatives is classified in short-term assets and liabilities.

Sensitivity analysis

Sensitivity analysis describes the impact that the interest rate and foreign exchange movements to which the Group is exposed would have had on the consolidated income statement for 2015 and on equity as at 31 December 2015.

The interest rate sensitivity analysis is based on the exposure of derivative and non-derivative financial instruments at the end of the year, assuming, in terms of the impact on the income statement, a 0.10% (10 bps) shift in the market yield curve at the beginning of the year, whilst, with regard to the impact of changes in fair value on other comprehensive income, the 10 bps shift in the curve was assumed to have occurred at the measurement date. The results of the analyses were:

• a) in terms of interest rate risk, an unexpected and unfavourable 0.10% shift in market interest rates would have resulted in a negative impact on the consolidated income statement, totalling €989 thousand, and on other comprehensive income, totalling €26,439 thousand, before the related taxation;
• b) in terms of currency risk, an unexpected and unfavourable 10% shift in the exchange rate would have resulted in a negative impact on the consolidated income statement, totalling €22,716 thousand, and on other comprehensive income, totalling €233,769 thousand, due to the adverse effect on the overseas companies' after-tax results and changes in the foreign currency translation reserves.

Liquidity risk

Liquidity risk relates to the risk that cash resources may be insufficient to fund the payment of liabilities as they fall due. The Atlantia Group believes that its ability to generate cash, the ample diversification of its sources of funding and the availability of committed and uncommitted lines of credit provides access to sufficient sources of finance to meet its projected financial needs.

As at 31 December 2015, project debt allocated to specific overseas companies amounts to €1,828 million. At the same date the Group has cash reserves of €5,688 million, consisting of:

• a) €2,997 million in cash and/or investments maturing in the short term;
• b) €547 million in term deposits allocated primarily to part finance the execution of specific construction services and to service the debt of certain Chilean companies;
• c) €2,144 million in undrawn committed lines of credit. The Group has lines of credit with a weighted average residual term to maturity – computed with reference to expiry of the drawdown period - of approximately 8 years and 5 months and a weighted average residual drawdown period of approximately 2 year and 3 months.

Details of drawn and undrawn committed lines of credit are shown below.

€M				31 December 2015
Borrower	Line of credit	Drawdown period expires	Final maturity	Available	Drawn	Undrawn
Autostrade per l'Italia	Medium/long-term committed EIB line 2013 "Environment and Motorw ay Safety"	31 Dec 2017	15 Sept 2037	200	-	200
Autostrade per l'Italia	Medium/long-term committed EIB line 2010 "Upgrade A14 B"	31 Dec 2017	31 Dec 2036	300	100	200
Autostrade per l'Italia	Medium/long-term committed EIB line 2013 "Florence Bologna IV B"	31 Dec 2017	15 Sept 2038	250	150	100
Autostrade per l'Italia	Medium/long-term committed CDP/SACE line	23 Sept 2016	23 Dec 2024	1,000	200	800
Autostrade per l'Italia	Medium/long-term committed CDP A1 2012 line	21 Nov 2020	20 Dec 2021	700	200	500
	Autostrade Meridionali Short-term loan from Banco di Napoli	30 June 2016	31 Dec 2016	300	245	55
Pavimental	Buyer's Credit Euler Hermes loan	31 Aug 2017	30 Sept 2025	50	11	39
Aeroporti di Roma	Committed Revolving Facility	16 Nov 2018	16 Dec 2018	250	-	250
			Lines of credit	3,050	906	2,144

The following schedules show the distribution of loan maturities outstanding as at 31 December 2015 and 31 December 2014.

The amounts in the above tables include interest payments and exclude the impact of any offset agreements. The time distribution of terms to maturity is based on the residual contract term or on the earliest date on which repayment of the liability may be required, unless a better estimate is available.

	31 December 2015
€000	Carrying amount	Total contractual flows	Within 12 months	Between 1 and 2 years	Between 3 and 5 years	After 5 years
Non-derivative financial liabilities (1)
Bond issues (A)	11,386,551	-14,716,589	-1,542,245	-1,097,359	-3,687,641	-8,389,344
Medium/long-term borrowings ( 2)
Total bank borrowings	3,308,211	-4,230,486	-249,397	-299,687	-877,141	-2,804,261
Total other borrowings	202,149	-52,280	-	-	-52,280	-
Total medium/long-term borrowings (B)	3,510,360	-4,282,766	-249,397	-299,687	-929,421	-2,804,261
Total non-derivative financial liabilities (C) = (A)+(B)	14,896,911	-18,999,355	-1,791,642	-1,397,046	-4,617,062	-11,193,605
Derivatives ( 2) ( 3)
Interest rate swaps (4)	146,997	-379,025	-22,379	-35,340	-133,789	-187,517
IPCA x CDI Swaps (4)	12,461	52,020	-7,833	-3,779	15,760	47,872
Cross currency swaps	308,625	-244,355	-12,241	-11,971	-36,163	-183,980
Total derivatives	468,083	-571,360	-42,453	-51,090	-154,192	-323,625

(1) Future cash flows relating to interest on bond issues and floating rate loans have been projected on the basis of the latest established rate and applied and held constant to final maturity.

(2) As at 31 December 2015, expected contractual flows are linked to the hedging of outstanding and highly likely future financial liabilities to meet funding requirements through to 2017 .

(3) Expected future cash flows from differentials on derivatives have been projected on the basis of the exchange rate fixed at the measurement date.

(4) Future cash flows relating to differentials on interest rate swaps (IRS) and IPCA x CDI Swaps have been projected on the basis of the latest interest rate fixed and held constant to the maturity of the contract.

	31 December 2014
€000	Carrying amount	Total contractual flows	Within 12 months	Between 1 and 2 years	Between 3 and 5 years	After 5 years
Non-derivative financial liabilities ( 1)
Bond issues (A)	10,493,593	-13,815,143	-675,641	-2,082,053	-4,401,347	-6,656,101
Medium/long-term borrowings ( 2)
Total bank borrowings	3,495,168	-4,418,940	-460,848	-229,456	-880,435	-2,848,201
Total other borrowings	161,710	-83,460	-31,293	-	-46,909	-5,258
Total medium/long-term borrowings (B)	3,656,878	-4,502,400	-492,141	-229,456	-927,344	-2,853,459
Total non-derivative financial liabilities (C) = (A)+(B)	14,150,471	-18,317,543	-1,167,782	-2,311,509	-5,328,691	-9,509,560
Derivatives ( 3) ( 4)
Interest rate swaps (5)	115,119	-308,420	-45,813	-37,486	-112,251	-112,870
IPCA x CDI Swaps (5)	9,800	61,384	-6,753	-4,400	10,994	61,543
Cross currency swaps	401,088	-364,367	-15,776	-16,025	-47,411	-285,155
Total derivatives	526,007	-611,403	-68,342	-57,911	-148,668	-336,482

(1) Future cash flows relating to interest on bond issues and floating rate loans have been projected on the basis of the latest established rate and applied and held constant to final maturity.

(2) This item includes the French companies' liabilities classified in liabilities related to discontinued operations.

(3) Expected contractual flows are linked to the outstanding hedged financial liabilities as at 31 December 2014.

(4) Expected future cash flows from differentials on derivatives have been projected on the basis of the exchange rate fixed at the measurement date.

(5) Future cash flows relating to differentials on interest rate swaps (IRS) and IPCA x CDI Swaps have been projected on the basis of the latest interest rate fixed and held constant to the maturity of the contract.

The distribution for transactions with amortisation schedules is based on the date on which each instalment falls due.

The following table shows the time distribution of expected cash flows from cash flow hedges, and the financial years in which they will be recognised in profit or loss.

	Derivati di copertura dei flussi di cassa - gestione dei rischi finanziari sezione rischio liquidità
--	------------------------------------------------------------------------------------------------------

	Derivati di copertura dei flussi di cassa - gestione dei rischi finanziari sezione rischio liquidità
€000	Carrying amount	Expected cash flows ( 1)	31 December 2015 Within 12 months	Between 1 and 2 years	Between 3	and 5 years After 5 years	Carrying amount	Expected cash flows ( 1)	31 December 2014 Within 12 months	Between 1 and 2 years	Between 3 and 5 years	After 5 years
Interest rate swaps Derivative liabilities Cross currency swaps	-146,997	-151,096	-32,109	-33,235	-75,637	-10,115 -	115,119 -	119,120 -	27,642 -	15,664 -	37,644 -	38,170
Assets Liabilities Total cash flow hedges	-209,018 -356,015	-210,928 -362,024	-7,013 -39,122	-7,440 -40,675	-26,526 -102,163	-169,949 -	401,088 - -180,064 - 516,207	404,598 - - 523,718 -	15,071 - 42,713 -	15,698 - 31,362 -	49,224 - 86,868 -	324,605 362,775
Accrued expenses on cash flow hedges Accrued income on cash flow hedges	-30,154 24,145					-	30,253 22,742
Total cash flow hedge derivative assets/liabilities	-362,024	-362,024	-39,122	-40,675	-102,163	-180,064 - 523,718		- 523,718 -	42,713 -	31,362 -		86,868 - 362,775
			31 December 2015						31 December 2014
€000		Expected cash flows ( 1)	Within 12 months	Between 1 and 2 years	Between 3	and 5 years After 5 years		Expected cash flows ( 1)	Within 12 months	Between 1 and 2 years	Between 3	and 5 years After 5 years
Interest rate swaps Income from cash flow hedges Losses on cash flow hedges		10,871 -157,868	- -27,560	- -34,017	- -75,370	10,871 -20,921		- -115,119	- -27,451	- -15,355	- -36,343	- -35,970
Cross currency swaps Income from cash flow hedges Losses on cash flow hedges		1,086,742 -1,295,760	46,469 -53,849	45,912 -53,761	132,932	861,429 -160,506 -1,027,644		1,421,636 -1,822,724	36,426 -48,393	80,579 -99,729		170,899 1,133,732 -220,929 -1,453,673
Total income (losses) from cash flow hedges		-356,015	-34,940	-41,866	-102,944	-176,265		-516,207	-39,418	-34,505	-86,373	-355,911

(1) Expected cash flows from swap differentials are calculated on the basis of market curves at the measurement date.

Credit risk

The Group manages credit risk essentially through recourse to counterparties with high credit ratings, with no significant credit risk concentrations as required by Financial Policy.

Credit risk deriving from outstanding derivative financial instruments can also be considered marginal in that the counterparties involved are major financial institutions. There are no margin agreements providing for the exchange of cash collateral if a certain fair value threshold is exceeded.

Provisions for impairment losses on individually material items, on the other hand, are established when there is objective evidence that the Group will not be able to collect all or any of the amount due. The amount of the provisions takes account of estimated future cash flows and the date of collection, any future recovery costs and expenses, and the value of any security and guarantee deposits received from customers. General provisions, based on the available historical and statistical data, are established for items for which specific provisions have not been made. Details of the allowance for bad debts for trade receivables are provided in note 7.7.

10. OTHER INFORMATION

10.1 Operating and geographical segments

Operating segments

The Atlantia Group's operating segments are identified based on the information provided to and analysed by Atlantia's Board of Directors, which represents the Group's chief operating decision maker, taking decisions regarding the allocation of resources and assessing performance. In particular, the Board of Directors assesses the performance of the business in terms of geographical area and business segment. The composition of the Atlantia Group's operating segments is as follows:

• a) Italian motorways: this includes the Italian motorway operators (Autostrade per l'Italia, Autostrade Meridionali, Tangenziale di Napoli, Società italiana per azioni per il Traforo del Monte Bianco and Raccordo Autostradale Valle d'Aosta), whose core business consists of the management, maintenance, construction and widening of the related motorways operated under concession. This operating segment also include the motorway operator, Autostrada Tirrenica, following the acquisition of control of this company and its consolidation from 30 September 2015. In addition, this segment also includes Telepass, the companies that provide support for the motorway business in Italy, and the Italian holding company, Autostrade dell'Atlantico, which holds investments in South America;
• b) overseas motorways: this includes the activities of the holders of motorway concessions in Brazil, Chile and Poland, and the companies that provide operational support for these operators and the related foreign-registered holding companies;
• c) Italian airports: this includes the airports business of Aeroporti di Roma, which holds the concession to operate and expand the airports of Rome Fiumicino and Rome Ciampino, and the companies responsible for supporting and developing the airports business;
• d) Atlantia and other activities: this segment includes:
  • 1) the Parent Company, Atlantia, which operates as a holding company for its subsidiaries and associates whose business is the construction and operation of motorways, airports and transport infrastructure, parking areas and intermodal systems, or who engage in activities related to the management of motorway or airport traffic;
  • 2) a number of subsidiaries that produce and operate free-flow tolling systems, traffic and transport management systems, and public information and electronic payment systems. The most important companies in this segment are Autostrade Tech and Electronic Transaction Consultants. In addition, adjusted operating cash flow for 2014 benefitted from the contribution of Ecomouv (the "EcoTaxe" project), which ceased operations following the French government's decision to terminate the related partnership agreement on 30 October 2014;
  • 3) infrastructure design, construction and maintenance, essentially carried out by Pavimental and Spea Engineering.

Other than those identified and presented in the following tables, there are no other operating segments that meet the quantitative thresholds provided for by IFRS 8.

The column "Consolidation adjustments" includes consolidation adjustments and intersegment eliminations. The "Unallocated items" include income and cost components that have not been allocated to the individual segments. These regard: revenue from construction services recognised in accordance with IFRIC 12 by the Group's operators, depreciation, amortisation, impairment losses and reversals of impairment losses, provisions and other adjustments, financial income and expenses and income tax expense. In relation to the information used to assess the performances of its operating segments, the Group reports EBITDA (calculated as shown below), deemed to be an appropriate means of assessing the results of the Atlantia Group and its operating segments.

A summary of the key performance indicators for each segment, identified in accordance with the requirements of IFRS 8, is shown below.

3. Consolidated financial statements as at and for the year ended 31 December 2015

	3. Consolidated financial statements as at and for the year ended 31 December 2015
			2015
€ M	Italian motorways	Overseas motorways	Italian airports	Atlantia and other activities	Consolidation adjustments		Unallocated items Total consolidated amounts
External revenue	3,764	546	803	191	-	-	5,304
Intersegment revenue (a)	13	-	1	569	-583	-	-
Total revenue (b)	3,777	546	804	760	-583	-	5,304
EBITDA (c)	2,314	407	450	4 4	-	-	3,215
Amortisation, depreciation, impairment losses and reversals of impairment losses						-918	-918
Provisions and other adjustments						-85	-85
EBIT (d)							2,212
Financial income/(expenses)						-774	-774
Profit/(Loss) before tax from continuing operations							1,438
Income tax (expense)/benefit						-470	-470
Profit/(Loss) from continuing operations							968
Profit/(Loss) from discontinued operations						7	7
Profit for the period							975
Operating cash flow (e)	1,471	330	320	-16	-	-	2,105
Capital expenditures (f)	967	172	318	4 1	-10	-	1,488

Profit for the period							975
Operating cash flow (e)	1,471	330	320	-16	-	-	2,105
			2014
€ M	Italian motorways	Overseas motorways	Italian airports	Atlantia and other activities	Consolidation adjustments		Unallocated items Total consolidated amounts
External revenue	3,659	541	751	132	-	-	5,083
Intersegment revenue (a)	19	-	-	452	-471	-	-
Total revenue (b)	3,678	541	751	584	-471	-	5,083
EBITDA (c)	2,261	412	466	3 0	-	-	3,169
Amortisation, depreciation, impairment losses and reversals of impairment losses						-867	-867
Provisions and other adjustments						-369	-369
EBIT (d)							1,933
Financial income/(expenses)						-671	-671
Profit/(Loss) before tax from continuing operations							1,262
Income tax (expense)/benefit						-553	-553
Profit/(Loss) from continuing operations							709
Profit/(Loss) from discontinued operations						64	64
Profit for the period							773
Operating cash flow (e)	1,417	320	337	5	-	-	2,079
Capital expenditures (f)	774	156	151	1 8	1	-	1,100

The following should be noted with regard to the operating segment information presented in the above tables:

• a) intersegment revenue regards intragroup transactions between companies in different operating segments. They relate primarily to the design and construction of infrastructure carried out by Pavimental and Spea Engineering;
• b) total revenue does not include the balance of revenue from construction services, totalling €723 million in 2015 and €564 million in 2014;
• c) EBITDA is calculated by deducting all operating costs, with the exception of amortisation, depreciation, impairment losses on assets and reversals of impairment losses, provisions and other adjustments, from operating revenue;
• d) EBIT is calculated by deducting amortisation, depreciation, impairment losses on assets and reversals of impairment losses, provisions and other adjustments from EBITDA. EBIT differs from the item "Operating profit" in the consolidated income statement due to the fact that the capitalised component of

financial expenses relating to construction services is not shown in this table, as indicated in note b) above. The relevant amounts total €29 million in 2015 and €18 million in 2014;

• e) operating cash flow is calculated as profit + 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 +/- deferred tax assets/liabilities recognised in the income statement;
• f) the figure for capital expenditure includes investment in assets held under concession, in property, plant and equipment and in other intangible assets, as shown in the consolidated statement of cash flows.

The indicators shown in the above tables (EBITDA, EBIT and operating cash flow) are not measures of performance defined by the IFRS adopted by the European Union and have not, therefore, been audited. Finally, it should be noted that in 2015 and in 2014, the Group did not earn revenue from any specific customer in excess of 10% of the Group's total revenue for the year.

Analysis by geographical segment

The following table shows the contribution of each geographical segment to the Group's revenue and noncurrent assets.

€ M	REVENUE		NON-CURRENT ASSETS ( *)
	2015	2014	31 December 2015	31 December 2014
Italy	5,232	4,851	22,116	21,974
Poland	7 5	6 5	207	228
Romania	5	1	-	-
France	2	3 8	-	-
Portugal	-	-	1 5	-
Europe sub-total	5,314	4,955 -	22,338	22,202
Brazil	328	385	1,022	1,400
Chile	308	226	1,799	1,920
USA	7 1	4 8	2 8	1 8
	6,021	5,614	25,187	25,540

(*)

In accordance with IFRS 8, non-current assets do not include non-current financial assets or deferred tax assets.

10.2 Disclosures regarding non-controlling interests in consolidated companies and structured entities

Disclosure regarding non-controlling interests

The following list shows the principal consolidated companies with non-controlling interests as at 31 December 2015 (with the relevant comparatives as at 31 December 2014). A complete list of the Group's investments as at 31 December 2015 is provided in Annex 1, "The Atlantia Group's scope of consolidation and investments".

	31 December 2015				31 December 2014
CONSOLIDATED COMPANIES WITH RELEVANT NON-CONTROLLING INTERESTS	COUNTRY	GROUP	NON	GROUP	NON
		INTEREST	CONTROLLING	INTEREST	CONTROLLING
			INTERESTS		INTERESTS
Italyn motorways
Autostrade Meridionali SpA	Italy	58.98%	41.02%	58.98%	41.02%
Società Italyna per Azioni per il Traforo del Monte Bianco SpA	Italy	51.00%	49.00%	51.00%	49.00%
Raccordo Autostradale Valle d'Aosta SpA	Italy	24.46%	75.54%	24.46%	75.54%
Overseas motorways
ABertin Concessões SA	Brazil	50.00%	50.00%	50.00%	50.00%
Concessionária da Rodovia MG 050 SA	Brazil	50.00%	50.00%	50.00%	50.00%
Rodovia das Colinas SA	Brazil	50.00%	50.00%	50.00%	50.00%
Triangulo do Sol Auto-Estradas SA	Brazil	50.00%	50.00%	50.00%	50.00%
Grupo Costanera SA	Chile	50.01%	49.99%	50.01%	49.99%
Sociedad concesionaria AMB SA	Chile	50.01%	49.99%	50.01%	49.99%
Sociedad concesionaria Costanera Norte SA	Chile	50.01%	49.99%	50.01%	49.99%
Sociedad concesionaria Vespucio Sur SA	Chile	50.01%	49.99%	50.01%	49.99%
Sociedad concesionaria Litoral Central SA	Chile	50.01%	49.99%	50.01%	49.99%
Sociedad Gestion Vial SA	Chile	50.01%	49.99%	50.01%	49.99%
Sociedad Operation y Logistica de Infraestructuras SA	Chile	50.01%	49.99%	50.01%	49.99%
Sociedad concesionaria Autopista Nororiente SA	Chile	50.01%	49.99%	50.01%	49.99%
Sociedad concesionaria Autopista Nueva Vespucio Sur SA	Chile	50.01%	49.99%	50.01%	49.99%
Stalexport Autostrady SA	Poland	61.20%	38.80%	61.20%	38.80%
Stalexport Autostrada Małopolska SA	Poland	61.20%	38.80%	61.20%	38.80%
Stalexport Autoroute SAR.L.	Poland	61.20%	38.80%	61.20%	38.80%
Via4 SA	Poland	33.66%	66.34%	33.66%	66.34%
Italian airports
Aeroporti di Roma SpA	Italy	95.92%	4.08%	95.92%	4.08%
Airport Cleaning Srl	Italy	95.92%	4.08%	95.92%	4.08%
AdR Assistence Srl	Italy	95.92%	4.08%	95.92%	4.08%
AdR Mobility Srl	Italy	95.92%	4.08%	95.92%	4.08%
AdR Security Srl	Italy	95.92%	4.08%	95.92%	4.08%
AdR Sviluppo Srl	Italy	95.92%	4.08%	95.92%	4.08%
AdR Tel SpA	Italy	95.92%	4.08%	95.92%	4.08%
Fiumicino Energia Srl	Italy	87.14%	12.86%	87.14%	12.86%
Leonardo Energia - Società consortile arl	Italy	88.02%	11.98%	88.02%	11.98%
Other activities
Ecomouv' SAS.	France	70.00%	30.00%	70.00%	30.00%
Electronic Transactions Consultants Co.	USA	64.46%	35.54%	64.46%	35.54%
Infoblu SpA	Italy	75.00%	25.00%	75.00%	25.00%

The consolidated companies deemed relevant for the Atlantia Group, in terms of the percentage interests held by non-controlling shareholders for the purposes of the disclosures required by IFRS 12, are the following:

• a) the Brazilian sub-holding company, AB Concessões, and its subsidiaries;
• b) the Chilean sub-holding company, Grupo Costanera, and its direct and indirect subsidiaries;
• c) Aeroporti di Roma and its subsidiaries.

The non-controlling interests in these sub-groups of companies are deemed relevant in relation to their contribution to the Atlantia Group's consolidated accounts. In addition, the non-controlling interest in AB Concessões is held by a sole shareholder (a Bertin group company), whilst the non-controlling interest in Grupo Costanera (49.99%) is held by the Canadian fund, Canada Pension Plan Investment Board. Information on the corporate restructuring carried out by the Brazilian sub-holding companies is provided in note 6.2.

The key financial indicators presented in the following table thus include amounts for the above companies and their respective subsidiaries, extracted, unless otherwise indicated, from the reporting packages prepared by these companies for the purposes of Atlantia's consolidated financial statements, in addition to the accounting effects of acquisitions (fair value adjustments of the net assets acquired). € M AB Concessoes

	and direct subsidiaries		Grupo Costanera and direct and indirect subsidiaries		Aeroporti di Roma and direct subsidiaries
	2015	2014	2015	2014	2015	2014
Revenue (1)	327	384	280	206	952	820
Profit for the year	76	54	124	2	124	62
Profit/(Loss) for the period attributable to non-controlling interests (2 )	3 8	2 7	6 2	1	5	- 2
Net cash generated from operating activities(2)	91	115	181	159	319	304
Net cash used in investing activities(2)	-124	-181	-33	-103	-310	-136
Net cash generated from/(used in) financing activities(2)	7	22	-23	-9	-145	-607
Effect of exchange rate movements on cash and cash equivalents (2)	-22	3	-12	0	-	-
Increase/(Decrease) in cash and cash equivalents (1 )	-48	-41	113	4 7	-136	-439
Dividends paid to non-controlling shareholders	16	-	-	-	5	-
€ M	AB Concessoes		Grupo Costanera and direct and indirect		Aeroporti di Roma

	and direct subsidiaries		Grupo Costanera and direct and indirect subsidiaries		Aeroporti di Roma and direct subsidiaries
	2015	2014	2015	2014	2015	2014
Non-current assets	1,911	2,365	2,922	3,271	5,085	5,123
Current assets	126	164	697	396	576	642
Non-current liabilities	1,013	1,371	1,686	1,987	2,177	2,361
Current liabilities	324	271	313	104	527	504
Net assets	700	887	1,620	1,576	2,957	2,900
Net assets attributable to non-controlling interests (1 )	351	445	823	802	121	119

Notes

(1) This item includes toll revenue, aviation revenue, revenue from construction services, contract revenue and other operating income.

(2) The amounts shown contribute to the Atlantia Group's consolidated amounts and, therefore, include the impact of any consolidation adjustments.

Disclosures regarding structured entities included in the scope of consolidation

Among the entities consolidated by the Group as at 31 December 2015, Romulus Finance ("Romulus") qualifies, in accordance with IFRS 12, as a structured entity, in that the Group exercises control over the entity as a result of existing contractual arrangements, rather than on the basis of voting rights. In addition, Romulus is a special purpose entity and is therefore subject to restrictions on its activities. In particular, it is an entity established in accordance with Law 130/1999 and listed on the Luxembourg Stock Exchange. As a result of a securitisation transaction, in 2003 the entity acquired Aeroporti di Roma's pre-existing bank debt from its banks, financing the transaction through the issue of asset-backed securities in 5 tranches (one of which denominated in pounds sterling), amounting to a total of €1,265 million. Servicing of the debt and redemption of the notes issued was guaranteed by the contemporaneous signature of a matching intercompany loan between the above entity and Aeroporti di Roma, exactly replicating the repayment terms and conditions of the issue. In January 2015, Atlantia repurchased 99.87% of the total amount of notes issued by Romulus, as previously described in note 7.15 above, which provides further details. Following this transaction, the remaining portion of the notes issued by Romulus accounted for in the Atlantia Group's consolidated financial statements as at 31 December 2015 amounts to €0.4 million. The guarantee provided by Ambac Assurance UK for the benefit of Romulus's noteholders was terminated in July 2015, following the noteholders' meeting and agreement regarding the payment due to the guarantor. As a result, Ambac no longer qualifies as a Controlling Party.

Finally, in January 2016, Aeroporti di Roma formally requested a waiver, with the aim of obtaining a full and final release from the contract governing the Romulus loan of 2003. The proposed waiver provides for, among other things, the conclusion of a novation agreement between Aeroporti di Roma and the securitisation vehicle, Romulus Finance, by which, subject to the prior consent of all the latter's creditors, Aeroporti di Roma will assume all the assets and liabilities receivable and payable by the Romulus vehicle from and to its debtors and creditors (primarily the A4 Noteholders and hedge counterparties). Once the novation is effective, Romulus Finance will cease to serve the original purpose for which it was established and, for this reason, will be placed in liquidation. Aeroporti di Roma will, on the other hand, be required to remove, from the existing financial agreements, all remaining interference resulting from the previous coexistance with the Romulus contract of 2003.

Disclosures regarding structured entities not included in the scope of consolidation

Unconsolidated subsidiaries include Gemina Fiduciary Services ("GFS"), in which Atlantia holds a 99.99% interest. This company is registered in Luxembourg and its sole purpose is to represent the interests of the holders of notes with a value of 40 million US dollars issued, in June 1997, by Banco Credito Provincial (Argentina), which subsequently became insolvent.

Any amount that GFS eventually recovers will be returned to the noteholders after deducting any management costs, which will be retained by GFS. Taking into account the specific activities and the company's corporate structure, GFS is identifiable as a structured entity. As indicated in Note 5, this company has not been consolidated due to its quantitative and qualitative immateriality to a true and fair view of the Group's financial position, results of operations and cash flows. The carrying amount of GFS in Atlantia's consolidated financial statements is zero.

10.3 Guarantees

The Group has certain personal guarantees in issue to third parties as at 31 December 2015. These include, listed by importance:

• a) the guarantee issued by Atlantia in favour of credit institutions on behalf of Strada dei Parchi as a safeguard against the impact on cash flow hedges of movements in interest rates. The amount of the guarantee, based on the fair value of the hedges, has been capped at €40,000 thousand, which corresponds to the value as at 31 December 2015. This guarantee was renewed for a further 12 months in February 2016. The guarantee can only be enforced if the concession held by Strada dei Parchi is terminated, whilst Atlantia has received a counter-indemnity from Toto Holding (Strada dei Parchi's majority shareholder), which has undertaken to assume Atlantia's guarantee obligations by 31 October 2016;
• b) bank guarantees provided by Tangenziale di Napoli (€29,756 thousand) to the Ministry of Infrastructure and Transport, as required by the covenants in the relevant concession arrangement;
• c) Atlantia's corporate counter-indemnity issued on behalf of the subsidiary, Electronic Transaction Consultants, to the insurance companies which have issued performance and maintenance bonds totalling €107,779 thousand for free-flow tolling projects;
• d) guarantees issued by the Brazilian, Chilean and Polish operators securing project financing in the form of either bank loans or bonds.
• e) bank guarantees provided by Telepass (€25,789 thousand) to certain French operators in connection with the company's operations in France.

As at 31 December 2015, the shares of certain of the Group's overseas operators (Rodovia das Colinas, Concessionaria da Rodovia MG050, Triangulo do Sol, Sociedad Concesionaria Costanera Norte, Sociedad Concesionaria de Los Lagos, Sociedad Concesionaria Autopista Nororiente, Sociedad Concesionaria Litoral Central, Sociedad Concesionaria Vespucio Sur and Stalexport Autostrada Malopolska) have also been pledged to the respective providers of project financing to the same companies, as have shares in Pune Solapur Expressways, Lusoponte and Bologna & Fiera Parking.

10.4 Reserves

As at 31 December 2015, Group companies have recognised contract reserves quantified by contractors amounting to approximately €1,390 million (€1,880 million as at 31 December 2014).

Based on past experience, only a small percentage of the reserves will actually have to be paid to contractors and, in this case, will be accounted for as an increase in the cost of intangible assets deriving from concession rights. Reserves have also been recognised in relation to works not connected to investment (work for external parties and maintenance), amounting to approximately €44 million. The estimated future cost is covered by provisions for disputes accounted for in the consolidated financial statements as at and for the year ended 31 December 2015.

10.5 Related party transactions

In implementation of the provisions of art. 2391bis of the Italian Civil Code, the Regulations adopted by the Commissione Nazionale per le Società e la Borsa (the CONSOB) in Resolution 17221 of 12 March 2010, as amended, and Resolution 17389 of 23 June 2010, on 11 November 2010 Atlantia's Board of Directors - with the prior approval of the Independent Directors on the Related Party Transactions Committee – approved the new Procedure for Related Party Transactions entered into directly by the Company and/or through subsidiaries.

The Procedure, which is available for inspection at the Company's website www.atlantia.it, establishes the criteria to be used in identifying related parties, in distinguishing between transactions of greater and lesser significance and in applying the rules governing the above transactions of greater and lesser significance, and in fulfilling the related reporting requirements.

The following tables show material amounts of a trading or financial nature in the income statement and statement of financial position generated by the Atlantia Group's related party transactions, including those with Directors, Statutory Auditors and key management personnel at Atlantia SpA.

	PRINCIPAL TRADING TRANSACTIONS WITH RELATED PARTIES
		Assets Liabilities						Income Expenses
		Trading and other assets			Trading and other liabilities		Trading and other income		Trading and other expenses
€ M	Trade receivables	Current tax assets	Total		Trade payable Other current liabilities	Total	Revenue from construction services and other	Total	Raw and consumable materials	Service costs Staff costs		Other operating costs	Total
				31 December 2015			operating			2015
Sintonia	-	7.6	7.6		- -	-	-	-		- -	-	-	-
Edizione		- -		-	- -	-	-	-		- -	0.1	0.1	0.2
Total parents	-	7.6	7.6		- -		- -	-		- -	0.1	0.1	0.2
Società Autostrada Tirrenica		- -		-	- -	-	1.6	1.6		- -	-	-	-
Biuro Centrum		- -	-	0.1	-	0.1	0.1	0.1	-	0.7	-	-	0.7
Bologna & Fiere Parking	1.0	-	1.0		- -	-	-	-		- -	-	-	-
Total associates	1.0	-	1.0	0.1	-	0.1	1.7	1.7	-	0.7	-	-	0.7
Pune Solapur Expressways Private	0.3	-	0.3		- -	-	-	-		- -	-	-	-
Total joint ventures	0.3	-	0.3		- -		- -	-		- -	-	-	-
Autogrill	38.4	-	38.4	4.0	-	4.0	82.7	82.7	0.4	1.1	-	0.3	1.8
Total affiliates	38.4	-	38.4	4.0	-	4.0	82.7	82.7	0.4	1.1	-	0.3	1.8
ASTRI pension fund		- -		- -	4.1	4.1	-	-		- -	13.5	-	13.5
CAPIDI pension fund		- -		- -	1.1	1.1	-	-		- -	2.0	-	2.0
Total pension funds		- -		- -	5.2	5.2	-	-		- -	15.5	-	15.5
Key management personnel Total key management personnel ( 1)		- - - -		- - - -	12.1 12.1	12.1 12.1	- -	- -		- - - -	22.7 22.7	- -	22.7 22.7
TOTAL	39.7	7.6	47.3	4.1	17.3	21.4	84.4	84.4	0.4	1.8	38.3	0.4	40.9
				31 December 2014						2014
Sintonia	-	18.7	18.7		- -	-	-	-		- -	0.1	-	0.1
Edizione		- -		-	- -	-	-	-		- -	0.1	0.1	0.2
Total parents	-	18.7	18.7		- -		- -	-		- -	0.2	0.1	0.3
Società Autostrada Tirrenica	4.9	-	4.9	5.1	-	5.1	1.9	1.9		- -	-	-	-
Biuro Centrum		- -		-	- -	-	0.1	0.1	-	0.7	-	-	0.7
Bologna and Fiere Parking	1.1	-	1.1		- -	-	-	-		- -	-	-	-
Altre imprese collegate	1.8	-	1.8		- -	-	0.1	0.1		- -	-	-	-
Total associates	7.8	-	7.8	5.1	-	5.1	2.1	2.1	0.0	0.7	-	-	0.7
Pune Solapur Expressways Private	0.6	-	0.6		- -	-	-	-		- -	-	-	-
Total joint ventures	0.6	-	0.6		- -		- -	-		- -	-	-	-
Autogrill	37.2	-	37.2	0.6	-	0.6	120.2	120.2	1.7	1.2	-	-	2.9
United Colors Communication		- -		-	- -	-	0.2	0.2	-	4.0	-	-	4.0
Total affiliates	37.2	-	37.2	0.6	-	0.6	120.4	120.4	1.7	5.2	-	-	6.9
ASTRI pension fund		- -		- -	4.6	4.6	-	-		- -	11.6	-	11.6
CAPIDI pension fund		- -		- -	1.4	1.4	-	-		- -	2.9	-	2.9
Total pension funds		- -		- -	6.0	6.0	-	-		- -	14.5	-	14.5
Key management personnel		- -		- -	3.5	3.5	-	-		- -	9.7	-	9.7
Total key management personnel ( 1)		- -		- -	3.5	3.5	-	-		- -	9.7	-	9.7
TOTAL	45.6	18.7	64.3	5.7	9.5	15.2	122.5	122.5	1.7	5.9	24.4	0.1	32.1

(1) Atlantia's "key management personnel" means the Company's Directors, Statutory Auditors and other key management personnel as a whole. Expenses for each year include emoluments, salaries, benefits in kind, bonuses and other incentives (including the fair value of share-based incentive plans) for Atlantia staff and staff of the relevant subsidiaries and associates. In addition to the information shown in the table, the consolidated financial statements also include contributions of €4.6 million paid on behalf of Directors, Statutory Auditors and other key management personnel and the related liabilities of €1.6 million as at 31

December 2015.

Annual Report 2015 198

	PRINCIPAL FINANCIAL TRANSACTIONS WITH RELATED PARTIES
€ M			Assets		Liabilities		Income
			Financial assets		Financial liabilities		Financial income
	Other non current financial assets	Current financial assets deriving from government grants	Other current financial assets	Total	Intercompany current account payables due to related parties	Total	Other financial income	Total
		2015
Società Autostrada Tirrenica (1)		-	- -	-	-	-	6.6	6.6
Pedemontana Veneta (in liquidation)		- -	0.1	0.1	-	-	-	-
Total associates	-	-	0.1	0.1	-	-	6.6	6.6
Rodovias do Tietê	15.6		- -	15.6	-	-	2.4	2.4
Total joint ventures	15.6	-	-	15.6	-	-	2.4	2.4
Autogrill	-	0.5	-	0.5	-	-	0.9	0.9
Total affiliates	-	0.5	-	0.5	-	-	0.9	0.9
Gemina Fiduciary Services		- -	0.1	0.1	-	-	-	-
Pavimental Est		- -	0.3	0.3	-	-	-	-
Total other companies	-	-	0.4	0.4	-	-	-	-
TOTAL	15.6	0.5	0.5	16.6	-	-	9.9	9.9
			31 December 2014				2014
Società Autostrada Tirrenica		- -	116.7	116.7	0.1	0.1	7.5	7.5
Total associates	-	-	116.7	116.7	0.1	0.1	7.5	7.5
Rodovias do Tietê	9.7		- -	9.7	-	-	0.7	0.7
Total joint ventures	9.7	-	-	9.7	-	-	0.7	0.7
Autogrill	-	0.5	-	0.5	-	-	1.4	1.4
Total affiliates	-	0.5	-	0.5	-	-	1.4	1.4
TOTAL	9.7	0.5	116.7	126.9	0.1	0.1	9.6	9.6

(1) The amounts shown in the table refer to financial incomes recognized during the year to the consolidation date of SAT, following the Company control acquisition performed during the 2015.

Related party transactions do not include transactions of an atypical or unusual nature, and are conducted on an arm's length basis.

The principal transactions entered into by the Group with related parties are described below.

The Atlantia Group's transactions with its parents

As at 31 December 2015, the Group is owed €7.6 million by the parent, Sintonia. This amount regards tax rebates claimed by Schemaventotto in prior years in respect of income taxes paid during the period in which this company headed the Group's tax consolidation arrangement. The Group collected €11.2 million in amounts due from Sintonia in 2015, as described in note 7.9.

During 2015, the Atlantia Group did not engage in material trading or financial transactions with its direct or indirect parents.

The Atlantia Group's transactions with other related parties

For the purposes of the above CONSOB Resolution, which applies the requirements of IAS 24, the Autogrill group ("Autogrill"), which is under the common control of Edizione Srl, is treated as a related party. With regard to relations between the Atlantia Group's motorway operators and the Autogrill group, it should be noted that, as at 31 December 2015, Autogrill operates 111 food service concessions at service areas along the Group's motorway network and 12 food service concessions at the airports managed by the Group. During 2015, the Atlantia Group earned revenue of approximately €82.7 million on transactions with Autogrill, including €80.2 million in royalties deriving from the management of service areas and airport sub-

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concessions. Recurring income is generated by contracts entered into over various years, of which a large part was awarded as a result of transparent and non-discriminatory competitive tenders. As at 31 December 2015, trading assets due from Autogrill amount to €38.4 million.

10.6 Disclosures regarding share-based payments

In order to incentivise and foster the loyalty of directors and/or employees holding key positions and responsibilities within Atlantia or in Group companies, and to promote and disseminate a value creation culture in all strategic and operational decision-making processes, driving the Group's growth and boosting management efficiency, a number of share incentive plans based on Atlantia's shares have been introduced in previous years. The plans entail payment in the form of shares or cash and are linked to the achievement of predetermined corporate objectives.

There were no changes, during 2015, in the share-based incentive plans already adopted by the Group as at 31 December 2014 and originally approved by the Annual General Meetings of shareholders held on 20 April 2011 (later amended by subsequent Annual General Meetings) and 16 April 2014.

The following table shows the main aspects of existing incentive plans as at 31 December 2015, including the options and units awarded to directors and employees of the Group and changes during 2015 (in terms of new awards and the exercise, conversion or lapse of rights). The table also shows the fair value (at the grant date) of each option or unit awarded, as determined by a specially appointed expert, using the Monte Carlo model and other assumptions. The amounts have been adjusted for the amendments to the plans originally approved, which were required to ensure plan benefits remained substantially unchanged despite the dilution caused by the bonus issues approved by the shareholders on 20 April 2011 and 24 April 2012.

	NUMBER OF OPTIONS/UNITS AWARDED		VESTING DATE EXERCISE/GRANT DATE	EXERCISE PRICE (€)	FAIR VALUE OF EACH OPTION OR UNIT AT GRANT DATE (€)	EXPECTED EXPIRATION AT GRANT DATE (YEARS)	RISK FREE INTEREST RATE USED	EXPECTED VOLATILITY (BASED ON HISTORIC MEAN)	EXPECTED DIVIDENDS AT GRANT DATE
2011 SHARE OPTION PLAN
Options outstanding as at 1 January 2015
- 13 May 2011 grant - 14 October 2011 grant		279,860 13 May 2014 13,991 13 May 2014	14 May 2017 14 May 2017	14.8 14.8	3.48 (*)	3.0 - 6.0 (*)	2.60% (*)	25.20% (*)	4.09% (*)
- 14 June 2012 grant		14,692 13 May 2014	14 May 2017	14.8	(*)	(*)	(*)	(*)	(*)
		345,887 14 June 2015	14 June 2018	9.7	2.21	3.0 - 6.0	1.39%	28.00%	5.05%
- 8 November 2013 grant	1,592,367	8 Nov 2016	9 Nov 2019	16.0	2.65	3.0 - 6.0	0.86%	29.50%	5.62%
- 13 May 2014 grant	173,762	N/A (**)	14 May 2017	N/A	(**)	(**)	(**)	(**)	(**)
- options exercised in 2014 - options lapsed in 2014	-209,525 -43,557
	Total 2,167,477
Changes in options in 2015
- 14 June 2015 grant	52,359	N/A (**)	14 June 2018	N/A	(**)	(**)	(**)	(**)	(**)
- options exercised	-459,762
- options lapsed	-142,172
Options outstanding as at 31 December 2015	1,617,902
2011 SHARE GRANT PLAN
Units outstanding as at 1 January 2015
- 13 May 2011 grant		192,376 13 May 2014	14 May 2016	N/A	12.90	4.0 - 5.0	2.45%	26.30%	4.09%
- 14 October 2011 grant		9,618 13 May 2014	14 May 2016	N/A	(*)	(*)	(*)	(*)	(*)
- 14 June 2012 grant		10,106 13 May 2014	14 May 2016	N/A	(*)	(*)	(*)	(*)	(*)
- 8 November 2013 grant	209,420	348,394 14 June 2015 8 Nov 2016	15 June 2017 9 Nov 2018	N/A N/A	7.12 11.87	4.0 - 5.0 4.0 - 5.0	1.12% 0.69%	29.90% 28.50%	5.05% 5.62%
- units lapsed in 2014	-19,683
	Total 750,231
Changes in units in 2015
- units converted into "shares" on 14 May 2015	-97,439
- units lapsed	-28,699
Units outstanding as at 31 December 2015	624,093
MBO SHARE GRANT PLAN
Units outstanding as at 1 January 2015
- 14 May 2012 grant		96,282 14 May 2015	14 May 2015	N/A	13.81	3.0	0.53%	27.20%	4.55%
- 14 June 2012 grant		4,814 14 May 2015	14 May 2015	N/A	(*)	(*)	(*)	(*)	(*)
- 2 May 2013 grant	41,077	2 May 2016	2 May 2016	N/A	17.49	3.0	0.18%	27.80%	5.38%
- 8 May 2013 grant - 12 May 2014 grant	49,446	8 May 2016 61,627 12 May 2017	8 May 2016 12 May 2017	N/A N/A	18.42 25.07	3.0 3.0	0.20% 0.34%	27.80% 28.20%	5.38% 5.47%
	Total 253,246
Changes in units in 2015 - units converted into "shares" on 14 May 2015	-101,096
Units outstanding as at 31 December 2015	152,150
2014 PHANTOM SHARE OPTION PLAN
Options outstanding as at 1 January 2015
- 9 May 2014 grant	2,718,203	9 May 2017	9 May 2020	N/A (***)	2.88	3.0 - 6.0	1.10%	28.90%	5.47%
- options lapsed in 2014	-48,201 Total 2,670,002
Changes in options in 2015
- 8 May 2015 grant	2,971,817	8 May 2018	8 May 2021	N/A (***)	2.59	3.0 - 6.0	1.01%	25.80%	5.32%
- options lapsed	-282,242
Options outstanding as at 31 December 2015	5,359,577

(*) Options and units awarded as a result of Atlantia's bonus issues which, therefore, do not represent the award of new benefits.

(**) These are phantom share options granted in place of certain conditional rights included in the grants of 2011 and 2012, and which, therefore, do not represent the award of new benefits.

(***) Given that this is a cash bonus plan, involving payment of a gross amount in cash, the 2014 Phantom Share Option Plan does not require an exercise price. However, the Terms and Conditions of this specific plan indicate an "Exercise price" (equal to the arithmetic mean of Atlantia's share price in a determinate period) as the basis on which to calculate the gross amount to be paid to beneficiaries.

Details of each plan are contained in specific information circulars prepared pursuant to art. 84-bis of CONSOB Regulation 11971/1999, as amended, and in the Remuneration Report prepared pursuant to art. 123 ter of the Consolidated Finance Act. These documents, to which reference should be made, are published in the "Remuneration" section of the Company's website at www.atlantia.it.

2011 Share Option Plan

Description

As approved by the Annual General Meeting of shareholders on 20 April 2011, and amended by the Annual General Meeting of shareholders on 30 April 2013 and 16 April 2014, the 2011 Share Option Plan entails the award of up to 2,500,000 options free of charge in three annual award cycles (2011, 2012 and 2013). Each option will grant beneficiaries the right to purchase one ordinary Atlantia share held in treasury, with settlement involving either physical delivery or, at the beneficiary's option, a cash payment equivalent to the proceeds from the sale of the shares on the stock exchange organised and managed by Borsa Italiana SpA, after deduction of the full exercise price. The exercise price is equivalent to the average of the official prices of Atlantia's ordinary shares in the month prior to the date on which Atlantia's Board of Directors announces the beneficiary and the number of options to be awarded.

The options granted will vest in accordance with the Plan terms and conditions and, in particular, only if, on expiration of the vesting period (three years from the date of award of the options to beneficiaries by the Board of Directors), cumulative FFO for the three annual reporting periods preceding expiration of the vesting period, adjusted for a number of specific items (total operating cash flow of the Group, Atlantia or of certain of its subsidiaries – depending on the role held by the various beneficiaries of the Plan), is higher than a preestablished target, unless otherwise decided by the Board of Directors, which has the authority to assign beneficiaries further targets. Vested options may be exercised, in part, from the first day following expiration of the vesting period and, in part, from the end of the first year following expiration of the vesting period and, in any event, in the three years following expiration of the vesting period (subject to the clause in the Plan terms and conditions requiring executive Directors and key management personnel to retain a minimum holding). The maximum number of exercisable options will be calculated on the basis of a mathematical algorithm that takes account, among other things, of the current value and the exercise price, plus any dividends paid, so as to cap the realisable gain.

Changes in options in 2015

The vesting period for the second award cycle expired on 14 June 2015. In accordance with the Terms and Conditions of this plan, following confirmation of effective achievement of the related performance hurdles, the final value of the shares (the arithmetic mean of the share price in the fifteen days prior to the vesting date) was determined as well as the additional options resulting from dividends paid during the vesting period. On 8 May 2015, Atlantia's Board of Directors, exercising the authority provided for in the Plan Terms and Conditions, awarded the plan beneficiaries, in place of these additional options, a matching amount of phantom options in such a way that, on exercising the awarded options, the beneficiaries receive a gross amount in cash, determined with a calculation method which allow the beneficiaries to receive a net amount equal to what would have been received if they had exercised the additional options (resulting in the award of shares in Atlantia and payment of the exercise price) and sold the underlying shares in the market. On expiry of the vesting period, this resulted in the award of a total of 52,359 phantom options for the second cycle of the plan. For the reasons given above, the options awarded do not constitute an additional benefit with respect to the benefits established in the Plan Terms and Conditions.

During 2015, a number of beneficiaries exercised vested options and paid the established exercise price; this entailed the allocation to them of Atlantia's ordinary shares held by the Company as treasury shares. This resulted in the transfer of:

• a) 99,018 of Atlantia's ordinary shares to beneficiaries in connection with the first cycle, the vesting period for which expired on 13 May 2014, accompanied by the exercise of 173,762 phantom options awarded in 2014; following the exercise of these options, the first cycle of the Plan has for all purposes concluded;
• b) 186,982 of Atlantia's ordinary shares to beneficiaries in connection with the second cycle, the vesting period for which expired on 14 June 2015, whilst no phantom options awarded in 2015 were exercised.

Thus, as at 31 December 2015, taking into account lapsed options at that date, the remaining options outstanding total 1,617,902, including 52,359 phantom options awarded under the second cycle (the unit fair values of which, as at 31 December 2015, was measured as €21.29, in place of the unit fair values at the grant date).

2011 Share Grant Plan

Description

As approved by the Annual General Meeting of shareholders on 20 April 2011, and amended by the Annual General Meeting of shareholders on 30 April 2013, the 2011 Share Grant Plan entails the grant of up to 920,000 units free of charge in three annual award cycles (2011, 2012 and 2013). Each unit will grant beneficiaries the right to receive one Atlantia ordinary share held in treasury, with settlement involving either physical delivery or, at the beneficiary's option, a cash payment equivalent to the proceeds from the sale of the shares on the stock exchange organised and managed by Borsa Italiana SpA.

The units granted will vest in accordance with the Plan terms and conditions and, in particular, only if, on expiration of the vesting period (three years from the date the units are granted to beneficiaries by the Board of Directors), cumulative FFO for the three annual reporting periods preceding expiration of the vesting period, adjusted for a number of specific items (total operating cash flow of the Group, Atlantia or of certain of its subsidiaries – depending on the role held by the various beneficiaries of the Plan) is higher than a preestablished target, unless otherwise decided by the Board of Directors. Vested units may be converted into shares, in part, after one year from the date of expiration of the vesting period and, in part, after two years from the date of expiration of the vesting period (subject to the clause in the Plan terms and conditions requiring executive Directors and key management personnel to maintain a minimum holding). The number of convertible units will be calculated on the basis of a mathematical algorithm that takes account, among other things, of the current value and initial value of the shares so as to cap the realisable gain.

Changes in units in 2015

The vesting period for the second award cycle expired on 14 June 2015. In accordance with the Terms and Conditions of this plan, following confirmation of effective achievement of the related performance hurdles, the units previously awarded vested: these units may be converted into Atlantia's ordinary shares from 14 June 2016.

In addition, with regard to the first award cycle, the vesting period for which expired on 13 May 2014, on 15 May 2015 vested units were converted, in accordance with the Plan Terms and Conditions, into Atlantia's ordinary shares. As a result, Plan beneficiaries received 97,439 shares held by the Company as treasury shares. The remaining units will be converted into Atlantia's ordinary shares from 15 May 2016.

As at 31 December 2015, taking into account lapsed units at that date, the remaining units outstanding total 624,093.

MBO Share Grant Plan

Description

As approved by the Annual General Meetings of shareholders on 20 April 2011 and amended by the Annual General Meetings of 30 April 2013 and 16 April 2014, the MBO Share Grant Plan, serving as part payment of the annual bonus for the achievement of objectives assigned to each beneficiary under the Management by Objectives (MBO) plan adopted by the Atlantia Group in 2011, 2012 and 2013, entails the grant of up to 340,000 units free of charge annually for three years (2012, 2013 and 2014). Each unit will grant beneficiaries the right to receive one ordinary share in Atlantia SpA held in treasury.

The units granted (the number of which is based on the unit price of the company's shares at the time of payment of the bonus, and on the size of the bonus effectively awarded on the basis of achievement of the assigned objectives) will vest in accordance with the Plan terms and conditions, on expiration of the vesting period (three years from the date of payment of the annual bonus to beneficiaries, following confirmation that the objectives assigned have been achieved). Vested units will be converted into a maximum number of shares on expiration of the vesting period (subject to the clause in the Plan terms and conditions requiring executive Directors and key management personnel to maintain a minimum holding), on the basis of a mathematical algorithm that takes account, among other things, of the current value and initial value of the shares, plus any dividends paid during the vesting period, so as to cap the realisable gain.

Changes in the units in 2015

The vesting period for the MBO Plan units awarded in relation to the objectives for 2011 expired on 14 May 2015. In accordance with the Terms and Conditions of this plan, all the units awarded thus vested, resulting in their conversion into Atlantia's ordinary shares and the allocation to beneficiaries of 101,096 shares held by the Company as treasury shares.

In addition, on 8 May 2015, Atlantia's Board of Directors, exercising the authority provided for in the Plan Terms and Conditions, awarded the plan beneficiaries a gross amount in cash in place of the additional units to be awarded as a result of the payment of dividends during the vesting period. This amount is computed in such a way as to enable beneficiaries to receive a net amount equal to what they would have received in case they had been awarded a number of Atlantia shares equal to the additional units and sold these shares in the market. Following the conversion of these units, there are no remaining units outstanding in relation to the awards for 2012.

As at 31 December 2015, the remaining units outstanding total 152,150.

2014 Phantom Share Option Plan

Description

On 16 April 2014, the Annual General Meeting of Atlantia's shareholders approved the new incentive plan named the "2014 Phantom Share Option Plan", subsequently also approved, within the scope of their responsibilities, by the boards of directors of the subsidiaries employing the beneficiaries. The plan entails the award of phantom share options free of charge in three annual award cycles (2014, 2015 and 2016), being options that give beneficiaries the right to payment of a gross amount in cash, computed on the basis of the increase in the value of Atlantia's ordinary shares in the relevant three-year period.

In accordance with the Terms and Conditions of the plan, the options granted will only vest if, at the end of the vesting period (equal to three years from the date on which the options were awarded to the beneficiaries by the Board of Directors), a minimum operating/financial performance target for (alternatively) the Group, the Company or for one or more of Autostrade per l'Italia's subsidiaries, as indicated for each Plan beneficiary (the "hurdle"), has been met or exceeded. The vested options may be exercised from, in part, the first day immediately following the vesting period, with the remaining part exercisable from the end of the first year after the end of the vesting period and, in any event, in the three years after the end of the vesting period (without prejudice to the Terms and Conditions of the plan as regards minimum holding requirements for executive directors and key management personnel). The number of exercisable options is to be computed in application of a mathematical algorithm, taking into account, among other things, the current value, the target value and the exercise price, in order to cap the realisable gain.

Changes in options in 2015

On 8 May 2015, the Board of Directors selected the beneficiaries for the second cycle of the plan in question, awarding a total of 2,971,817 phantom options with a vesting period from 8 May 2015 to 8 May 2018 and an exercise period, on achievement of the relevant hurdles, from 9 May 2018 to 8 May 2021. Thus, as at 31 December 2015, taking into account lapsed options at that date, the remaining options

outstanding total 5,359,577, including 2,670,002 phantom options awarded under the first cycle and 2,689,575 phantom options awarded under the second cycle (the unit fair values of which as at 31 December 2015 were measured as €4.10 and €2.33, respectively, in place of the unit fair values at the grant date).

The prices of Atlantia's ordinary shares in the various periods covered by the above plans are shown below:

• a) price as at 31 December 2015: €24.57;
• b) price as at 8 May and 15 June 2015 (the grant date for new options or units, as described): €23.58 and €21.73, respectively;
• c) the weighted average price for 2015: €23.64;
• d) the weighted average price for the period 8 May 2015 31 December 2015: €23.89;
• e) the weighted average price for the period 15 June 2015 31 December 2015: €24.01.

In accordance with the requirements of IFRS 2, as a result of existing plans, in 2015 the Group has recognised staff costs of €7,014 thousand, based on the accrued fair value of the options and units awarded at that date, including €3,415 thousand accounted for as an increase in equity reserves. In contrast, the liabilities represented by phantom share options outstanding as at 31 December 2015 have been recognised in other current and non-current liabilities, based on the assumed exercise date.

Finally, following the exercise, by Atlantia's Board of Directors, of its authority to award phantom options in place of any additional options due, on closure of the second cycle of the "2011 Share Option Plan", the amount of €705 thousand was reclassified from equity reserves to other current liabilities, corresponding to the initial estimate of the fair value of the additional options.

10.7 Significant legal and regulatory aspects

This section describes the main disputes outstanding and key regulatory aspects of importance to the Group's operators.

Current disputes are unlikely to give rise to significant charges for Group companies in addition to the provisions already accounted for in the consolidated financial statements as at and for the year ended 31 December 2015.

Italian motorways

Toll increases with effect from 1 January 2016

The decrees issued by the Minister of Infrastructure and Transport and Minister of the Economy and Finance on 31 December 2015 approved the following:

• a) Autostrade per l'Italia's right, in accordance with its request to the Grantor, to apply an increase of 1.09% with effect from 1 January 2016, corresponding to the sum of the following components:
  • 0.00% for inflation;
  • 0.97% to provide a return capital expenditure via the "X" tariff component;
  • 0.12% to provide a return on investment via the "K" tariff component;
• b) the provisional suspension of the toll increases to be applied by Tangenziale di Napoli, Raccordo Autostradale Valle d'Aosta and Autostrada Tirrenica with effect from 1 January 2016 (the increases thus amount to 0.00%), whilst awaiting approval of the operators' revised financial plans. The toll increases will be finalised by the interministerial decree approving the related addenda revising the financial plans, subject to the right of the operators to recoup any toll increases on the basis of the revised financial plans. Revenue lost as a result of suspension of the increases will be taken into account in the toll increases for 2017. The above companies have challenged the legislation suspending the toll increases for 2016;
• c) the absence of any toll increase for Autostrade Meridionali, given that its concession expired on 31 December 2012. Autostrade Meridionali has brought a legal challenge contesting the above decision, in line with 2014 (the related legal challenge was upheld by the Campania Regional Administrative Court sentence of 22 January 2015) and 2015 (judgement is pending).

Based on bilateral agreements between Italy and France, Traforo del Monte Bianco has applied an increase of 0.02% from 1 January 2016, in compliance with the relevant Intergovernmental Committee resolution. This was determined on the basis of inflation (the average rate for Italy and France).

Legal actions brought by Autostrade Meridionali, challenging the Grantor

In addition to the above challenges regarding tolls, on 19 March 2015 Autostrade Meridionali brought an action before Campania Regional Administrative Court, challenging the Grantor's failure to respond to a request to review its toll structure with effect from 1 January 2015 in order to maintain the same level of revenue for the company, as provided for in the existing toll policies. In a sentence entered on 11 June 2015, Campania Regional Administrative Court upheld Autostrade Meridionali's challenge, ordering the Grantor to respond to the above request within 30 days of the date of notification of the sentence, which took place on 10 July 2015. As things stand, the Grantor has yet to respond to the request.

On 24 April 2015, the company also brought an action before Campania Regional Administrative Court, challenging the Grantor's adoption of a financial compensation plan for the period from 1 January 2013 (the date of expiry of the concession) and 31 December 2015 (the date on which it was assumed that the new operator would take over, at the time of filing the action). The Campania Regional Administrative Court sentence entered on 30 July 2015 upheld Autostrade Meridionali's challenge, ruling that the Grantor's failure to respond to the request for adoption of a new financial plan for the concession period 2013-2015 is unlawful. The Grantor appealed the above sentence before the Council of State in October 2015. Judgement is pending.

Reduced tolls for frequent users

The reduced tolls for frequent users, introduced by the Memorandum of Understanding of 24 February 2014 signed by a number of motorway operators, including Autostrade per l'Italia and the trade association, AISCAT, have been extended, at the request of the Minister of Infrastructure and Transport on 31 December 2015, for a further 12 months, and therefore until the end of 2016. Recovery of the revenue lost as a result of the initiative during the period 1 June 2014 – 31 December 2016 is assured on the basis of the criteria set out in the Memorandum. One of the options for operators requesting such a solution (as notified to the above Ministry by Autostrade per l'Italia) is the application of a specific toll increase to be introduced in the first year of the next regulatory period.

II Addendum to Autostrade per l'Italia's Single Concession Arrangement

On 10 December 2015, the Ministry of Infrastructure and Transport and Autostrade per l'Italia signed the II Addendum to the Single Concession Arrangement, which has added the Casalecchio - Northbound interchange to Autostrade per l'Italia's investment commitments. This project requires a commitment to invest up to a total of approximately €157 million, with around €2 million already invested as at 31 December 2015 to cover the cost of design, and the remainder to be paid to ANAS on the basis of the state of progress of the works. ANAS is to build and then manage the road. The Addendum will be effective once the Minister of Infrastructure and Transport and Minister of the Economy and Finance have issued the relevant decree and it has been registered with the Court of Auditors.

Addendum to Autostrada Tirrenica's Single Concession Arrangement

In response to observations from the European Commission regarding, among other things, extension of the concession to 2046, on 14 October 2014 the Grantor sent Autostrada Tirrenica a draft addendum envisaging extension of the concession to 2043, completion of work on the Civitavecchia–Tarquinia section (in progress), and eventual completion of the motorway (in sections, if necessary) to be put out to tender.

Completion of the motorway is subject to fulfilment of the technical and financial conditions to be verified jointly by the grantor and the operator and execution of an addendum to the Concession Arrangement, with a viable financial plan attached. Subsequently, on 13 May 2015, a memorandum of understanding was signed by the Grantor, Tuscany Regional Authority, Lazio Regional Authority, Autostrade per l'Italia and Autostrada Tirrenica with an attached draft addendum which, whilst maintaining the duration of the concession until 2043, a viable financial plan for the Civitavecchia–Tarquinia section and the obligation to put all the works out to tender, provides for further commitments regarding the design of the Tarquinia–Ansedonia and Ansedonia–Grosseto South sections and of the improvements to the existing dual carriageway (the SS. 1 Variante Aurelia) between Grosseto South and San Pietro in Palazzi, retaining the current layout of the road. Performance of the above construction work is subject to positive outcomes of studies of the technical/design, financial and administrative feasibility to be conducted jointly by the Grantor and Autostrada Tirrenica and execution of an addendum with a viable financial plan.

Following a request from the Grantor on 5 June 2015, after further discussion with Italy's representative office at the EU, on 24 June 2015 Autostrada Tirrenica prepared and submitted further versions of a financial plan, relating to (i) the sections in operation and the Civitavecchia–Tarquinia section under construction, and (ii) the entire Civitavecchia–San Pietro in Palazzi section of road, both expiring on 31 December 2040. Finally, again at the Grantor's request, on 6 August 2015 Autostrada Tirrenica submitted a draft financial plan for the sections in operation between Livorno and Cecina and Rosignano and San Pietro in Palazzi and for the section under construction between Civitavecchia and Tarquinia, with an expiry date of 2028 if the financial

design for the San Pietro in Palazzi–Tarquinia section and the financial plan for the entire road not be approved by 2017.

Award of the concession for the A3 Naples – Pompei – Salerno motorway

With regard to award of the concession for maintenance and operation of the Naples – Pompei – Salerno motorway (the previous concession expired at the end of 2012), Autostrade Meridionali, which continues to operate the motorway under a contract extension, submitted its bid on 23 April 2015.

On 16 November 2015, the Tender Committee raised a number of doubts regarding the two bids received, proposing to disqualify both. The two bidders responded with a request to be allowed to resolve the issues raised and thus continue with the tender process. The Grantor thus submitted a supplement to the procedure to the Tender Committee and, on 16 December 2015, informed the bidders that the final outcome of the tender process will be announced at the next public session of the Committee, which has, however, yet to be scheduled.

The bidder, Consorzio Stabile SIS, has brought a legal challenge before Campania Regional Administrative Court, contesting the minutes of the meeting of 16 November 2015. This challenge, which was not notified to Autostrade Meridionali, will be discussed at a hearing on 9 March 2016. The company will be represented in court in order to object to the challenge on the grounds of inadmissibility, given that the conclusions of the Tender Committee are not final in view of the position adopted by the Grantor.

Enabling Act on tenders and concessions

Enabling Act 11 of 28 January 2016 regarding tenders and concessions, designed to apply the relevant EU directives and reform the regulations governing public contracts, was published in the Official Gazette of 29 January 2016.

In this regard, the legislation has introduced an obligation for public and private entities, who hold an existing or future concession to provide public works or services, to award 80% of the related contracts for works, services or goods, with a value of over €150 thousand, by public tender. The legislation also establishes that the remaining part may be carried out in-house, in the case of public entities, or by direct or indirect subsidiaries or associates in the case of private entities. The legislation provides for a transitional period of adjustment of no more than twenty-four months in the case of existing concessions. The only exclusions from compliance with the above obligation are existing or future concessions awarded in the form of project financing, and existing or future concessions awarded by public tender in accordance with EU law, for which existing legislation governing tenders in force at the date of entry into effect of the enabling act (13 February 2016) will continue to apply.

By 18 April 2016, the government is authorised to issue a legislative decree applying the above EU directives, in accordance with the criteria contained in the enabling act.

Litigation regarding the Ministry of Infrastructure and Transport and the Ministry for Economic Development decree of 7 August 2015 and competitive tenders for oil and food services at service areas

On 7 August 2015, the Ministry of Infrastructure and Transport and the Ministry for Economic Development issued a decree approving the plan to restructure the motorway service area network.

The plan envisages steps to rationalise the network and revisit the manner in which services are provided to motorway users and the tender process for the award of the related concessions, in keeping with the Guidelines of 29 March 2013 and 29 January 2015.

The above Plan envisages, among other things, (i) the closure of 15 service areas on Autostrade per l'Italia's network and (ii) the option of revisiting the manner in which services are provided by operators. With regard to the above decree and with reference to the competitive tenders for the award of concessions at service areas, a number of challenges have been brought before Lazio Regional Administrative Court, in which Autostrade per l'Italia is a party. These appeals can be summarised as follows:

a) a challenge, with a request for injunctive relief, brought by Unione Petrolifera, the trade body representing oil service providers, and notified to AISCAT, with the aim of obtaining the cancellation of the above decree of 7 August 2015 and all other related or connected acts;

• b) a challenge, with a request for injunctive relief, brought by a number of certain oil service providers (Q8, TotalErg, API) with the aim of obtaining the cancellation of the above decree of 7 August 2015 and all other related or connected acts;
• c) a challenge, with a request for injunctive relief, brought by Maglione Srl (Sarni group), with the aim of contesting the tender process for the award of a unified concession called by the Advisor, Roland Berger, appointed by Autostrade per l'Italia;
• d) challenges, with in some cases a request for injunctive relief, brought by individual oil service providers, with the aim of obtaining the cancellation of the above decree of 7 August 2015 and all other related or connected acts, including those regarding the competitive tenders called and those relating to the closure of service areas. Certain appeals also involve claims for compensation;
• e) a challenge brought by trade bodies representing oil service providers, contesting initial calls for tenders for oil service concessions, published by Autostrade per l'Italia in June 2015, and the related acts.

The requests for injunctive relief have been turned down. In some cases, the plaintiffs have appealed to the Council of State against the refusal to grant injunctive relief; as of 4 March 2016, these appeals have also been rejected.

In addition, the acts relating to a number of competitive tenders for oil service concessions, forming part of the first tranche of awards, have been challenged before Lazio Regional Administrative Court by TotalErg and ENI. In particular, the requests for injunctive relief filed by the plaintiff, TotalErg, regarding awards in the first tranche have been rejected by both the Regional Administrative Court and the Council of State. The two plaintiffs, TotalErg and ENI, have requested a hearing on the merits of the second tranche of awards.

Hearings on the merits of the above challenges at Lazio Regional Administrative Court are, if scheduled, expected to take place from April 2016.

Accident on the Acqualonga viaduct on the A16 Naples-Canosa motorway on 28 July 2013

On 28 July 2013, there was an accident, involving a coach travelling along the Naples-bound carriageway (at km 32+700) of the Acqualonga viaduct on the A16 Naples-Canosa motorway, operated by Autostrade per l'Italia. At the beginning of 2015, all those under investigation, including the Chief Executive Officer, received notice of completion of the preliminary investigation. Including executives, former managers and former employees, twelve of Autostrade per l'Italia's employees are under investigation. At the preliminary hearing held on 22 October 2015, after two adjournments due to irregularities in the writs of summons, the court admitted the entry of appearance of the civil parties and ordered, at the request of the civil parties, the citation of Autostrade per l'Italia and Reale Mutua (the company that insured the coach) as liable in civil law. At the hearing of 17 December 2015, Autostrade per l'Italia and Reale Mutua were represented in court and the Public Prosecutors concluded their briefs requesting the indictment of all the defendants.

At the hearing of 14 January 2016, evidence was presented by the attorneys for the defendants and the civil parties. Discussion of the defence of all the accused took place at the hearing of 22 February 2016 and will continue at the hearing of 14 March 2016.

To date, approximately 60% of the civil parties have received compensation and have, therefore, withdrawn their actions following payment of their claims by Autostrade per l'Italia's insurance provider under the existing general liability policy.

In addition to the criminal proceedings, a number of civil actions have been brought and were recently combined by the Civil Court of Avellino. Following the combination of the various proceedings, judgement is pending before the Civil Court of Avellino in relation to: (i) the original action brought by Reale Mutua Assicurazioni, the company that insured the coach, in order to make the maximum claim payable available to the damaged parties, including Autostrade per l'Italia (€6 million), (ii) subsequent claims, submitted as counterclaims or on an individual basis, by a number of damaged parties, including claims against Autostrade per l'Italia. Subject to the permission of the court, Autostrade per l'Italia intends to refer claimants to its insurance provider (Swiss Re International), with a view to being indemnified against any claims should it lose the case. In addition, as a result of the accident, the Autorità di Vigilanza sui Contratti Pubblici (the Authority for the Control of Public Contracts, now known as the Autorità Nazionale Anticorruzione, Italy's National Anti-Corruption Authority) launched an investigation of Autostrade per l'Italia regarding maintenance, carried out over the years, of the section of the A16 Naples-Canosa motorway including the above Acqualonga viaduct. On completing its investigation, the National Anti-Corruption Authority published resolution 30 of 22 December 2014, registered on 22 January 2015, stating that it had found clear evidence of irregularities in

the work carried out in 2012 in order to upgrade the safety barriers on the Naples-Canosa section, which should also have included, according to the Authority, the Acqualonga viaduct.

Based on the opinion of its own technical units, Autostrade per l'Italia responded to the Authority on 24 February 2015, contesting the conclusions contained in the above resolution.

Investigation by the Public Prosecutor's Office in Prato of a fatal accident to a worker employed by Pavimental

On 27 August 2014, a worker employed by Pavimental SpA – the company contracted by Autostrade per l'Italia to carry out work on the widening of the A1 to three lanes – was involved in a fatal accident whilst at work. In response, the Public Prosecutor's Office in Prato has placed a number of Pavimental personnel under criminal investigation for reckless homicide, alleging violation of occupational health and safety regulations. In December 2014, Autostrade per l'Italia was notified of a request for information from the Company, together with a request to appoint a defence counsel and elect an address for service, given that the Company is considered a juridical person under investigation in accordance with Legislative Decree 231/2001 (regarding the administrative responsibility of corporate entities). The crime of which Autostrade per l'Italia is accused is that defined in art. 25 septies of Legislative Decree 231/2001, in relation to art. 589, paragraph 3 of the penal code ("Reckless homicide committed in violation of occupational health and safety regulations"). The suspects include Autostrade per l'Italia's Project Manager. Pavimental has also been ordered to hand over documentation. Preliminary investigations are underway and a preliminary hearing has been requested by the defence counsel of one of the suspects employed by Pavimental, with the aim of appointing experts to reconstruct the dynamics of the fatal accident. The hearing, held to examine the experts' report, took place on 5 February 2016, during which the expert appointed by the court concluded that the company's Organisational, Management and Control Model, required by Legislative Decree 231/2001, and the related procedures were broadly in compliance with the Decree. At the hearing of 24 February 2016, scheduled to enable the defendants' attorneys to respond, the preliminary hearing held to examine the experts' report came to an end. The decision of the Public Prosecutor's office is now awaited.

Investigation by the Public Prosecutor's Office in Florence of the state of New Jersey barriers installed on the section of motorway between Barberino and Roncobilaccio

On 23 May 2014, the Public Prosecutor's Office in Florence issued an order requiring Autostrade per l'Italia to hand over certain documentation, following receipt, on 14 May 2015, of a report from Traffic Police investigators in Florence noting the state of disrepair of the New Jersey barriers on the section of motorway between Barberino and Roncobilaccio. The report alleges negligence on the part of unknown persons, as defined by art. 355, paragraph 2.3 of the penal code (breach of public supply contracts concerning "goods or works designed to protect against danger or accidents to the public").

At the same time, the Prosecutor's Office ordered the seizure of the New Jersey barriers located along the right side of the carriageways between Barberino and Roncobilaccio, on ten viaducts, ordering Autostrade per l'Italia to take steps to ensure safety on the relevant sections of motorway. This seizure was executed on 28 May 2014. In June 2014, Autostrade per l'Italia's IV Section Department handed over the requested documents to the Police. The documentation concerns the maintenance work carried out over the years on the safety barriers installed on the above section of motorway. In October 2014, addresses for service were formally nominated for a former General Manager and an executive of Autostrade per l'Italia, both under investigation in relation to the crime defined in art. 355 of the penal code. In addition, at the end of November 2014, experts appointed by the Public Prosecutor's Office, together with experts appointed by Autostrade per l'Italia, carried out a series of sample tests on the barriers installed on the above motorway section to establish their state of repair. Following the experts' tests, the barriers were released from seizure.

Preliminary investigations are still in progress, given that the Public Prosecutor's Office has yet to take a final decision.

Proceedings before the Supreme Court - Autostrade per l'Italia versus Craft Srl (Judgement no. 22563/2015) Craft Srl holds a patent for a type of speed check equipment. In 2006, Craft filed suit against Autostrade per l'Italia, claiming that the IT system used by the latter for its speed checks ("Sicve Tutor") infringed its patent and requesting the court to, therefore, find in its favour and declare an infringement of its patent. The related claim for damages from Autostrade per l'Italia amounted to approximately €1.8 million. Autostrade per l'Italia filed a counterclaim, requesting that Craft's patent be declared null and void on the grounds that the patent did not meet the requirements of novelty and innovation. The court of first instance rejected both Craft's claim and Autostrade per l'Italia's counterclaim.

Craft then appealed and the court found that Autostrade per l'Italia had not infringed the patent and that Craft's patent was valid. In 2012, Autostrade per l'Italia appealed the second judgement before the Supreme Court (Corte di Cassazione), requesting that the case be referred to the Court of Appeal for a judgement declaring the patent null and void. Craft, for its part, filed a cross-appeal, repeating its request for a judgement upholding its claim that its patent had been infringed. On 4 November 2015, the First Civil Section of the Supreme Court handed down judgement no. 22563, rejecting Autostrade per l'Italia's appeal and confirming the judgement handed down by the court of second instance in relation to validity of the patent. The Court also upheld Craft's cross-appeal, revoking the previous judgement on the basis of inadequate grounds and referring the case to the Court of Appeal in Rome, before different judges. There will, therefore, be a new hearing before the Court of Appeal in Rome, to be held by 5 December 2016. The Court must decide whether or not Craft has incurred damages as a result of Autostrade per l'Italia's infringement of its patent.

Autostrade per l'Italia -Autostrade Tech against Alessandro Patanè and others

On 14 August 2013, Autostrade per l'Italia and Autostrade Tech served a writ on Mr. Alessandro Patanè and the companied linked to him with the aim of protecting the Group's position, following repeated claims filed by Mr. Patanè regarding ownership of the software used in the SICVe (Safety Tutor) system. Patanè responded by filing a counterclaim that included, among other things, a claim for damages of approximately €7.5 billion and permission to summons numerous third parties.

At the hearing of 19 November 2015, the court, having noted Autostrade per I'Italia and Autostrade Tech's refusal to accept the settlement proposed by Mr. Patanè during the previous hearing of 10 June 2015 (a "settlement based on the payment of €240 million for a 20-year licence to use the Tutor software from 2006, and the waiver of any other future claim"), reserved judgement on the objections put forward by Autostrade per I'Italia and Autostrade Tech regarding the inadmissibility of the counterclaim and the request to summons third parties given that they were filed late by Mr. Patanè and his companies.

On 10 December 2015, the court announced its decision, declaring that the plaintiffs had filed their claims late and that the counterclaim and summons of third parties were, therefore, inadmissible. The hearing was adjourned until 9 November 2016, when the case will be heard.

Appeals brought before the Civil Court of Rome and the Court of Latina in accordance with art. 700 of the Code of Civil Procedure

On 24 November 2015 and 4 January 2016, Mr. Patanè and the companied linked to him (MPA Group Srl and Alessandro Patanè Srl) filed two urgent appeals, the first in Rome, against Autostrade per l'Italia, Autostrade Tech, Atlantia and Edizione, the second in Latina, also citing ANAS and Deloitte & Touche.

On an urgent preliminary basis, without hearing the defendants, and then with regard to the merits, the appellants made various requests, largely the same as those contained in the counterclaim filed by Mr. Patanè within the context of the action brought by Autostrade per l'Italia and Autostrade Tech against Alessandro Patanè and associated companies.

In both the above actions, the courts turned down the appeals, ordering Mr. Patanè and the companied linked to him to pay the legal expenses of all the parties involved.

Claim for damages from the Ministry of the Environment

The criminal case (initiated in 2007 and relating to events in 2005) pending before the Court of Florence involves two of Autostrade per l'Italia's managers and another 18 people from contractors, who are accused of violating environmental laws relating to the reuse of soil and rocks resulting from excavation work during construction of the Variante di Valico. A total of seven hearings were held between September and December 2014, in order to hear evidence from certain witnesses and experts called on by a number of the parties involved.

Numerous hearings were then held in 2015, during which all the witnesses for the prosecution were heard.

In particular, at the hearing of 12 January 2015, in response to matching objections raised by the counsel for the defence, the court issued a lengthy order establishing that the reports on the inspections conducted by the Police, with particular reference to the sampling report collected by the Police under the above warrant, and the ensuing laboratory analyses of the samples, were null and void due to procedural irregularities. Similarly, the reports on the laboratory analyses of the samples collected by ARPAT staff in exercising their regulatory powers were also declared null and void and thus returned to the investigating magistrate as they may no longer be used as evidence.

In response, the investigating magistrate filed an objection to the judge which, in the order dated 9 February 2015, was declared inadmissible by the court appointed to rule on such objections at the Florence Court of Appeal, in view of the absence of any grounds for the objection.

The witnesses and experts called by the defence are currently being heard. Once this process has been completed, the preliminary hearing will conclude.

Investigation by the Public Prosecutor's Office in Vasto of the fatal motorway accident of 21 September 2013 Following the motorway accident of 21 September 2013 at km 450 of the A14, operated by Autostrade per l'Italia, in which several people were killed, the Public Prosecutor's Office in Vasto has launched a criminal investigation, initially against persons unknown. On 23 March 2015, the Chief Executive Officer and, later, further two executives of the Company received notice of completion of the investigation, containing a formal notification of charges. The charges relate to negligent cooperation resulting in reckless manslaughter. The Public Prosecutor, following initiatives taken by the defence counsel, has requested that the case be brought to court. Due to irregularities in the writs of summons sent to the defendants, the preliminary hearing was adjourned until 1 March 2016. At this hearing, the case was adjourned until 17 May 2016.

Overseas motorways

Brazil

The pending legal action regarding the ban on toll charges for the suspended axles of heavy vehicles, involving operators in the State of Sao Paulo, including Triangulo do Sol, is described in detail in the Annual Report for the year ended 31 December 2014. On 24 March 2015, the Supreme Court (Tribunale Superiore di Giustizia or "STJ") for the State of Sao Paulo rejected the challenge brought by the operators with the aim of obtaining a reinstatement of proceedings before the Court of the State of Sao Paulo, ruling it inadmissible. On 14 April 2015, the operators filed an extraordinary challenge against the court's ruling before Brazil's Federal Supreme Court (Supremo Tribunal Federal or "STF"). On 3 June 2015, the STJ refuted the existence of the grounds of a political, social or economic nature necessary for the case to be heard by the STF. On 28 June 2015, the operators filed a further challenge, contesting this preliminary judgement. This challenge was also rejected by the Supreme Court on 5 August 2015.

Thus, as a result of this decision, toll charges for the suspended axles of heavy vehicles are not permitted under the terms of the concession. To date, the operator, Triangulo do Sol (in common with Colinas, which was not a party to the legal action) has, in any event, applied this charge, not in application of any court ruling, but as a means of compensating for the decision, taken by the Public Transport Services Regulator for the State of Sao Paulo (ARTESP) in the same period, not to allow the application of annual toll increases from July 2013.

On 17 April 2015, Federal Law 13103/2015 come into effect. This, among other things, authorises the exemption of road hauliers from the payment of toll charges for the suspended axles of heavy vehicles. The above legislation has been applied by the state of Minas Gerais, whilst the government of the state of Sao Paulo has decided not to apply the exemption. Thus, from 17 April 2015, Rodovia MG050, in Minas Gerais, has ceased charging for the suspended axles of heavy vehicles, whilst operators in the state of Sao Paulo, including Rodovias das Colinas and Triangulo do Sol, continue to levy the charge. Rodovia MG050's lost revenue, following the entry into effect of the above legislation and the resulting cessation of charges for the suspended axles of heavy vehicles, will be recouped in accordance with the terms of the concession arrangement.

The investigation launched by ARTESP on 13 July 2013, with a view to revising the Addenda and Amendments signed and approved by the Regulator and 12 motorway operators in 2006 - the changes were designed to extend the concession terms to compensate, among other things, for the expenses incurred as a result of taxes

introduced after the concessions were granted – is described in detail in the Annual Report for the year ended 31 December 2014. On 24 February 2015, the Public Prosecutor for the State of Sao Paulo provided a nonbinding opinion the judge appointed to take charge of the investigation relating to the operator, Colinas. This recommended termination of the proceedings underway, reiterating that legality of the Addenda and Amendments of 2006, which were subject to close examination and endorsed by the relevant Ministry. On 10 March 2015, ARTESP responded to the judge, contesting the Public Prosecutor's opinion and requesting that the investigation continue. On 15 February 2016, the Court of the State of Sao Paulo issued a ruling, granting Rodovias das Colinas the option of submitting a financial assessment to demonstrate its case. The operators concerned, including Colinas and Triangulo do Sol, and industry insiders, including banks, believe that the risk of a negative outcome is remote. This view is backed up by a number of unequivocal legal opinions provided by leading experts in administrative law and regulation.

Poland

Since 20 June 2012, the Polish Antitrust Authority has been conducting an Explanatory Proceeding to investigate Stalexport Autostrada Maloposka. The proceeding aims to investigate the company's "abuse of its dominant position" with regard to the tolls charged to road users when carrying out construction and extraordinary maintenance work, given that Stalexport Autostrada Maloposka is held to operate as a "monopoly". Should the Authority rule that there has been an "abuse of its dominant position", the proceeding could result in a fine. Whilst reserving the right to challenge any ruling the Authority's investigation may result in, the company is taking steps to define the timing and amount of eventual reductions in tolls whilst such work takes place. At the end of a similar investigation in 2008 the local Antitrust office fined the Polish company approximately €300 thousand, given that it had not put in place a procedure for reducing tolls during the work. The fine was confirmed at various instances, including by the Supreme Court.

Italian airports

Fee increases

In keeping with existing regulations and with the ENAC Guidelines for the "Procedure for consultation between airport operators and users for ordinary planning agreements and those in derogation", on 31 August 2015, Aeroporti di Roma sent a letter inviting all the Users' Associations to attend a public hearing held on 30 September 2015, on the same date publishing, as part of the consultation process, all the documentation relating to the proposed fees for 2016 on its website.

On 18 September 2015, a request for clarification of the published documents was received from AssoHandlers. ADR responded to this request at the public hearing of 30 September 2015.

On 30 October 2015, the company published responses to further requests for clarification from Ryanair, IBAR (together with AOC, Assaereo, IATA and the Users' Committee for Fiumicino), AssoHandlers and EasyJet on its website.

The proposed fee increases for 2016 envisage average increases of 10.4% and 6.4% for Fiumicino and Ciampino, respectively.

On 15 December 2015, at the end of the consultation process, the fees for Fiumicino and Ciampino were published on the websites of ENAC and ADR. The new fees will be in effect from 1 March 2016 until 28 February 2017.

The Regional Tax on Aircraft Noise (IRESA) and municipal surcharge

The national law, converting Law Decree 145/2013 (the so-called "Destination Italy" law, published in the Official Gazette on 21 February 2014) includes measures for airports that provide subsidies to airlines; fixes the maximum value of the Regional Tax on Aircraft Noise (IRESA) calculation parameters applicable throughout the country; establishes that the municipal surcharge introduced by article 2, paragraph 11 of Law 350 of 24 December 2003, and subsequent increases, is not payable by passengers in transit at Italian airports, if they have arrived from another Italian airport, and that the Commissioner's surcharge for Roma Capitale

should continue to be applied to all passengers departing from or in transit at the airports of Rome Fiumicino and Ciampino, with the exception of transit passengers arriving from and departing for an Italian airport.

IRESA

On 15 April 2014, Lazio Regional Authority adopted a resolution (no. 196) authorising a legal challenge to be brought before the Constitutional Court, contesting the constitutional legitimacy of the "Destinazione Italia" Law Decree - and, in particular, article 13, paragraph 15 bis - as converted into Law 9 of 21 February 2014. On 9 February 2015, the Constitutional Court ruled Lazio Regional Authority's challenge to be inadmissible. In response to the Constitutional Court sentence, Lazio Regional Authority: i) authorised ADR, whilst awaiting specific legislation to be enacted by Lazio Regional Authority, to assess, collect and pass on IRESA, applying, in the form of a payment on account, the maximum rate of €0.50 per tonne based on the maximum takeoff weight, subject to application of an eventual adjustment; ii) granted the Regional Office for Economic Planning, Budgeting and Estate and Asset Management (Direzione Regionale Programmazione Economica, Bilancio, Demanio e Patrimonio) authority to take all the necessary steps in order to sign an addendum to the Agreement between Lazio Regional Authority and ADR, whilst awaiting enactment of the relevant legislation. Regional Law 11 was published in the Lazio Region's Official Gazette on 30 July 2015. Article 2 of the new legislation sets out "amendments to the provisions of art. 13, paragraph 15-bis of Law Decree 145 of 23 December 2013, converted with amendments into Law 9 of 21 February 2014, containing urgent measures pertaining to air transport". The new rates for IRESA introduced by the new legislation, where applicable, are effective from 22 February 2014.

In October 2015, ADR and Lazio Regional Authority agreed an Addendum to the agreement governing the application of IRESA signed by the parties on 30 January 2014.

Limitation on the handlers authorised to operate at Fiumicino airport

In December 2014, ADR was notified of five challenges lodged with Lazio Regional Administrative Court, contesting ENAC's decision of 13 October 2014 to limit the number of handlers authorised to provide the services listed in points 3, 4 and 5 (with the exclusion of 5.7) in Annex A to Legislative Decree 18/1999 at Fiumicino airport. The challenges were lodged by Assaereo, Aviation Services SpA, Consulta S.r.l, Consulta SpA and IBAR. In December 2014, ADR was also notified of two additional grounds for a challenge lodged by "Fallimento Groundcare Milano Srl". Finally, on 6 February 2015, ALHA Airport filed an extraordinary challenge with the Italian President, requesting cancellation of ENAC's decision.

With two separate rulings dated 17 April 2015, Lazio Regional Administrative Court rejected the requests for injunctive relief brought by IBAR and Assaereo. No dates have so far been set for hearings on the merits of the other challenges filed. The hearing on the merits of Assaereo's challenge is scheduled for 16 June 2016.

Selection of 3 handlers authorised to provide the services defined in points 3, 4 and 5 (with the exclusion of 5.7) in Annex A of Legislative Decree 18/1999 at Fiumicino airport

ENAC published a call for tenders in Volume S/81 of the Official Journal of the European Union on 25 April 2015, with the aim of selecting ground handlers to be authorised to operate at the airport, in accordance with art. 11 of Legislative Decree 18/1999. This followed ENAC's decision, dated 13 October 2014, to limit the number of ground handlers to three.

Following publication of the above call for tenders, Consulta SpA, Assaereo, IBAR and Aviation Services filed a legal challenge with Lazio Regional Administrative Court against the call for tenders, citing additional grounds. ATA Italia has, instead, filed a new challenge with Lazio Regional Administrative Court. At the hearing held on 26 June 2015, the Court rejected the request for injunctive relief brought by the plaintiff. The hearing on the merits has been scheduled for 8 July 2016.

At the respective hearings of 9 and 17 July 2015, Consulta SpA and IBAR withdrew their requests for injunctive relief. No date has so far been set for the hearing on the merits.

At the date for the submission of tenders, scheduled for 30 June 2015 in the call for tenders, ENAC had received five bids.

On 30 June 2015, ENAC met in public session to open the envelopes containing participants' "administrative documents" and, on 1 July 2015, began opening the envelopes containing the "Tender".

On 16 December 2015, ENAC's Tender Committee, meeting in public session, read the scores assigned to the bidders and the related rankings.

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On 23 December 2015, ENAC's General Manager issued a Directive announcing the selection of the following bidders: Aviation Services SpA, Aviaprtner Handling SpA and Alitalia SAI SpA.

On 29 December 2015, Consulta, citing additional grounds, challenged the above selection before Lazio Regional Administrative Court, requesting injunctive relief. At the hearing of 21 January 2016, held to consider the request for injunctive relief, the Regional Administrative Court upheld Consulta's request for a postponement, adjourning the case until a later date.

In a challenge filed with Lazio Regional Administrative Court on 14 January 2016, WFS Srl has also challenged ENAC's selection of handlers. In response, ADR filed a cross-appeal opposing the challenge and, at the hearing of 4 February 2016, the court rejected WFS's request for injunctive relief and scheduled the hearing on the merits for 14 April 2016.

Procedure for selecting a provider to operate cargo handling services in a portion of the Cargo Terminal at Fiumicino airport under a sub-concession arrangement

ADR published a call for tenders in Volume S/67 of the Official Journal of the European Union on 4 April 2015, with the aim of selecting a provider to operate cargo handling services in a portion of the Cargo Terminal at Fiumicino airport under a sub-concession arrangement.

At the date indicated in the call for tenders, ADR had received three applications to tender.

Following the above publication of the call for tenders, Fiumicino Logistica Europa and BAS Handler filed two separate challenges with Lazio Regional Administrative Court, requesting annulment of the call for tenders and injunctive relief.

At the hearing of 11 June 2015, the Regional Administrative Court rejected both requests for injunctive relief. BAS thus filed a second challenge before Lazio Regional Administrative Court, contesting the new layout of the cargo terminal, requesting an urgent injunction against a letter from ENAC and one from ADR. This was turned down by the administrative court on 26 June 2015.

At the hearing held to discuss the injunctive relief, the plaintiff requested an adjournment to enable them to submit additional evidence and the court scheduled another hearing for 29 October 2015, when the plaintiff withdrew its request for injunctive relief.

In a letter dated 5 October 2015, ADR proceeded to exclude Alha Airport from the procedure and, on 29 December 2015, sent out letters of invitation. The tender process is currently in progress.

Noise Reduction and Abatement Plan for Ciampino airport

Pursuant to the Ministerial Decree of 29 November 2000, ADR submitted its Noise Reduction and Abatement Plan for Ciampino airport to Lazio Regional Authority and the municipalities of Rome, Marino and Ciampino on 28 November 2013. In February 2014, the three municipalities expressed their opposition to the proposed plan.

On 5 May 2014, Lazio Regional Authority formally set up a cross-agency panel to look into the above Plan. In addition to Lazio Regional Authority, the panel's members include representatives from the Municipality of Rome, the municipalities of Ciampino and Marino, ENAC, ARPA Lazio (the region's environmental protection agency) and ADR.

On 12 June 2014, Regulation 598/2014 was published in the Office Journal of the European Union L173. The regulation has introduced rules and procedures for the introduction of operational restrictions aimed at containing the noise at airports in the EU, as part of a balanced approach, based on an examination (using a process developed by the International Civil Aviation Organisation) of the available measures, with a view to resolving the issue of noise pollution in keeping with the principle of cost effectiveness at the level of each individual airport.

The Regulation, which has abolished Directive 2002/30/EC, will come into effect on 13 June 2016 and will apply to European airports "with traffic in excess of 50,000 movements of civil aircraft per calendar year, based on the average of the last three calendar years prior to determining the level of noise". On 11 November 2015, ADR submitted a new Noise Reduction and Abatement Plan for Ciampino airport to Lazio Regional Authority and the municipalities of Rome, Ciampino and Marino. The new Plan was drawn up following the opposition expressed by the authorities to the Noise Reduction and Abatement Plan submitted by ADR in 2013.

Following receipt of the Plan, Lazio Regional Authority called a Services Conference with all the interested authorities (neighbouring municipalities) in order to jointly assess the Plan submitted by ADR, which must then be approved by each individual municipality.

The Conference's first sitting, to which ADR was invited, was held on 12 January 2016.

Determination of airport concession fees for the three-year period 2016-2018

The interdepartmental decree ("Decreto interdirigenziale") of 14 December 2015 issued by the State Property Office and the Ministry of Infrastructure and Transport, containing the "Determination of the airport concession fees for the three-year period 2016-2018", was published in Official Gazette no. 296 on 21 December 2015. This Decree confirms application of the same criteria defined in the previous decree (Executive Decree of 22 April 2013), determining airport concession fees for the three-year period 2013- 2015, for the three-year period 2016-2018. This is based on the method for quantifying airport concession fees contained in art. 1 of the interdepartmental decree of 30 June 2003.

Airports Plan – Airports of national interest

With the issue of Presidential Decree 201 of 17 September 2015, containing "Regulations governing the identification of airports of national interest, in accordance with article 698 of the Navigation Code", the procedure provided for in the Navigation Code and the related process of planning the development and restructuring of Italy's airport system has come to an end.

For each of the 10 catchment areas indicated, the Presidential Decree identifies 38 airports of national interest (including Fiumicino and Ciampino) that are the sole responsibility of the State, assigning responsibility for airports of regional importance to the relevant regional and local authorities, as required by the legislation governing the federal approach to the management of public property (Legislative Decree 85/2010). 12 airports of "strategic importance" were then chosen from among those of national interest, including Rome Fiumicino, which is the principal hub for the country's airport system and, together with the airports of Milan Malpensa and Venice Marco Polo, acts as an intercontinental gateway.

Procedure for approving airport infrastructure projects

Law Decree 185 of 25 November 2015 contains "Urgent measures for infrastructure projects" and was published in Official Gazette 275 of 25 November 2015 and effective from the date of publication. Article 9 (Withdrawal of unused funding and repeal of procedures for airports), c. 3 states that "Paragraph 3-bis of article 71 of Law Decree 1 of 24 January 2012, converted, with amendments, into Law 27 of 24 March 2012, is hereby repealed".

Article 71, c. 3bis had assimilated the procedures involved in carrying out infrastructure projects at Fiumicino and Ciampino airports with those relating to strategic infrastructure projects of national interest (so-called major works) and had extended application of the legislation governing consents for such works to include the airports.

With the repeal of art. 71, c. 3bis, infrastructure projects for Fiumicino and Ciampino airports no longer on a par with the above major works and are, therefore, once again subject to the pre-existing legislation governing consents.

Following the entry into effect of Law Decree 185/2015, ENAC has formally withdrawn its request for an environmental impact assessment linked to approval of the Master Plan for Ciampino in accordance with the procedure introduced by art. 71, c. 3bis, announcing that it would shortly submit a new request for the assessment according to the ordinary procedure.

On 4 December 2015, the Ministry of the Environment and Land and Sea Protection took receipt of the above withdrawal (ceasing to process the application) and ENAC's commitment to submit a new request for an assessment in accordance with the ordinary procedure.

Notice of withdrawal of the application was also given in a release published on the Ministry's website, which also stated that a new request for an environmental impact assessment would be submitted in accordance with the ordinary procedure, pursuant to art. 23 of Legislative Decree 152/2006, as amended, following the Law Decree's conversion into law.

Law 9 of 22 January 2016, converting Law Decree 185/2015 into law with amendments, published in Official Gazette 18 of 23 January 2016, has confirmed the repeal of art. 71, c. 3bis.

Increase in the municipal surcharge on air passenger duty

The Decree issued by the Ministry of Infrastructure and Transport on 29 October 2015, regarding "Definition of the increase in the municipal surcharge on air passenger duty to be transferred to INPS", was published in Official Gazette 300 of 28 December 2015.

The decree has introduced a further increase in the municipal surcharge, which amounts to €2.50 for 2016, €2.42 for 2017 and €2.34 for 2018, in application of paragraph 23 of art. 13 of Law Decree 145/2013, the socalled "Destinazione Italia" legislation, converted with amendments into Law 9/2014.

As a result of this decree, the municipal surcharge on air passenger duty paid by passengers departing from Fiumicino and Ciampino airports amounts to €10 in 2016.

The airline, EasyJet, has challenged the decree before Lazio Regional Administrative Court, requesting its cancellation subject to prior injunctive relief.

Fire at Fiumicino airport's Terminal 3

During the night of 6 May 2015 a fire broke out in the airside part of Terminal 3 (also "T3") at Fiumicino airport, affecting an area of approximately 5,450 square metres. Prosecutors are currently investigating the causes of the fire.

The fire primarily damaged the areas used for security and passport controls at T3, the concourse linking gates C and D, a part of the transit corridor and the various systems and equipment serving arrivals and departures at T3. The worst hit area was immediately seized by the police on 7 May 2015. This area was then rendered once again accessible to ADR on 15 June 2015 by order of the Public Prosecutor's Office in Civitavecchia. ADR immediately began work on a clean-up and on making the area safe.

From an operational viewpoint, Fiumicino airport was closed to all departing and arriving traffic from 8.00am to 1.00pm on 7 May 2015, with the sole exclusion of intercontinental flights. Following a meeting that day between ENAC (the Civil Aviation Authority) and other authorities involved in managing the emergency, with the aim of assessing the state of Terminal 3 and agreeing on how to proceed, the airport gradually began operating again that afternoon, with 50% of the airport's normal capacity restored. ADR took the necessary steps to get the airport working again, whilst giving priority to the health and safety of staff. A leading fire damage clean-up and restoration company, Belfor, was contracted to carry out the work. The airport returned to full capacity, including short- and medium-haul flights, from 19 July 2015, following the opening of Pier D.

A total of 114 retail outlets, operated under concession by third parties, were damaged by the fire. 20 were seriously damaged and it is not known when they will reopen.

Following the event, ADR immediately hired HSI Consulting to monitor the air quality. The survey, which focused on the type of pollutants present following a fire, was conducted in compliance with national and international regulations governing situations of this nature and on the basis of the procedures following by public bodies in Italy.

Based on the results of the monitoring of air quality, ADR announced that, under national legislation (Legislative Decree 81/2008), pollutant levels were within permitted amounts, with the exception of one day and one pollutant (toluene), which was present in an area closed to traffic for renovation. With specific regard to dioxin, given that Italy has yet to introduce specific legislation, the readings were in any event well below the level set by legislation in Germany, the only EU country to have a put a limit on the level of this pollutant. ADR also issued regular announcements, communicating the results of its monitoring to passengers and airport operators.

On 26 May 2015, the relevant Giudice delle Indagini Preliminari (Preliminary Investigating Magistrate), took the precautionary measure of ordering the preventive confiscation of Pier D in Terminal 3 in accordance with art. 321 of the Code of Criminal Procedure, authorising access only in order to decontaminate the premises so as to make them fit for use again.

At ADR's request, following compliance with the related requirements, the release of Pier D in Terminal 3 was ordered on 19 June 2015, subject to a complete, uniform and immediate clean-up of the retail areas, assigning the Supervisory Authority responsibility for monitoring the situation. ADR announced that it had complied with all the related requirements.

Investigations by the relevant authorities are ongoing, with the aim of understanding exactly what happened to cause the fire and identify any responsible parties. At the same time, ADR and the insurance assessors are

working to quantify the damage directly and indirectly incurred, on which the related insurance claims will be based and potential contractual and legal safeguards activated.

The Public Prosecutor's Office in Civitavecchia has launched two criminal proceedings as a result of the fire: the first regards violation of articles 113 and 449 of the criminal code (negligent arson), in relation to which, on 25 November 2015, the investigators issued the order required by art.415-bis of the criminal code giving notice of completion of the preliminary investigation of: (i) five employees of the contractor that was carrying out routine maintenance work on the air conditioning system and two employees of ADR, all also being investigated for the offence referred to in art. 590 of the criminal code (personal injury through negligence), (ii) ADR's Chief Executive Officer in his role as "employer", (iii) the airport fire chief and (iv) the Director of the Lazio Airport System (ENAC).

The second investigation, punishable by a fine, regards violations of occupational safety regulations contained in Legislative Decree 81/2008 allegedly committed by ADR's former Chief Executive Officer, in his role as "employer", and two ADR Group managers with the same roles within two subsidiaries (ADR Security Srl and Airport Cleaning Srl). All the parties were notified of fines imposed for the violations identified and, as a result, the investigations were closed.

Dispute over airport fees for flights to Switzerland

In July 2011 ADR was served with a writ by Swiss International Airlines Ltd. ("Swiss"), claiming the repayment of €1.8 million due to a material error made in the initial quantification, equal to the excess amount paid by Swiss from 2002 to 2009 for take-off and landing fees. ADR had applied the fees applicable to destinations outside the EU to flights to and from the Swiss Confederation, rather than those for EU flights. In August 2011, ADR was served with another writ regarding a similar claim by Swiss, amounting to €3.5 million (including interest) in passenger boarding fees. At the hearing of 20 February 2015, at the joint request of the parties, the judge ordered a further adjournment, to allow negotiations to take place, until 10 July 2015.The case was then further adjourned until 3 November 2017.

In December 2015, ADR and Swiss reached a settlement that will bring the legal action to an end. On 7 April 2014, ADR was served with a writ by EasyJet Switzerland SA, claiming the repayment of €1 million, plus interest, equal to the excess amount paid, according to the airline, between 2009 and 2013 (based on the fees applicable to destinations outside the EU) for take-off and landing fees and passenger boarding fees. At the initial hearing on 23 October 2014, the investigating judge set a deadline for the submission of further evidence. The next hearing is scheduled for 20 December 2017 for the admission of the facts.

Contract tenders

With regard to the dispute with ATI Alpine Bau, relating to the upgrade of runway 3 at Fiumicino airport, the judgement filed by the Court of Appeal in Rome on 14 July 2014 has, in substance, rejected the appeal brought by ATI Alpine Bau, upholding ADR's position, and declared the contract signed on 30 December 1997 terminated due to the negligence of the temporary consortium to which the contract was awarded. On 19 June 2015, ADR was notified of an appeal lodged at the Supreme Court by Alpine Bau, now insolvent, regarding the Court of Appeal judgement. A date for the hearing is awaited.

Pier C: contract reserves

With regard to the integrated tender for construction of the new Pier C and the Avant-corps at Fiumicino airport, covered by contract no. TDS 254 of 27 July 2006 and subsequent addenda, awarded to the temporary consortium, Cimolai (the total value of which is approximately €300 million, it should be noted that with signature of the State of Progress of the Work SAL no. 91 (work completed through to 30 November 2015), the temporary consortium, Cimolai, has accounted for contract reserves 19, 20 and 21, with 21 yet to be quantified. These have been rejected by the appointed Site Manager. To date, the quantified reserves entered into the accounts amount to a provisional total of approximately €71 million.

In view of the sum reached (more than 10% of the value of the contract), the procedure provided for in art. 240 of the Code for Tenders and Contracts (amicable agreement) has been activated. As a result, the Site Manager is preparing the confidential report required by paragraph 3 of the above article, to be submitted to the person responsible for any further action.

217 Other activities

Electronic Transaction Consultants (ETC)

Following the withholding of payment by the Miami-Dade Expressway Authority ("MDX") for the on site and office system management and maintenance services provided by ETC, and after a failed attempt at mediation as required by the service contract, on 28 November 2012 ETC petitioned the Miami Dade County Court in Florida to order MDX to settle unpaid claims amounting to over US\$30 million and damages for breach of contact. In December 2012, MDX, in turn, notified ETC of its decision to terminate the service contract and sue for compensation for alleged damages of US\$26 million for breach of contract by ETC.

In August 2013, ETC and MDX agreed a settlement covering the services rendered by ETC during the "disentanglement" phase, which ended on 22 November 2013. MDX has duly paid the sum due. In December 2015, the court case, during which the parties presented their respective arguments and the various experts and witnesses were heard, came to an end. Judgement is expected by the end of the first half of 2016.

10.8 Events after 31 December 2015

There were no material events after the end of the year under review.

ANNEXES TO THE CONSOLIDATED FINANCIAL STATEMENTS

ANNEX 1

THE ATLANTIA GROUP'S SCOPE OF CONSOLIDATION AND INVESTMENTS AS AT 31 DECEMBER 2015

ANNEX 2

DISCLOSURE PURSUANT TO ART.149-DUODECIES OF THE CONSOB REGULATIONS FOR ISSUERS 11971/1999

THE ABOVE ANNEXES HAVE NOT BEEN AUDITED

ANNEX 1 THE ATLANTIA GROUP'S SCOPE OF CONSOLIDATION AND INVESTMENTS AS AT 31 DECEMBER 201 5

NAME	REGISTERED OFFICE	BUSINESS	CURRENCY	AT 31 DECEMBER 2015 CONSORTIUM FUND AS (IN SHARES/UNITS) SHARE CAPITAL/	HELD BY	% INTEREST IN SHARE CAPITAL/ CONSORTIUM FUND AS AT 31 DECEMBER 2015	OVERALL GROUP % INTEREST	NOTE
PARENT
ATLANTIA SpA	ROME	HOLDING COMPANY	EURO	825,783,990
SUBSIDIARIES CONSOLIDATED ON A LINE-BY-LINE BASIS
AD MOVING SpA	ROME	ADVERTISING SERVICES	EURO	1,000,000	Autostrade per l'Italia SpA	100%	100%
ADR ASSISTANCE Srl	FIUMICINO	PRM SERVICES	EURO	4,000,000	Aeroporti di Roma SpA	100%	95.92%
AIRPORT CLEANING Srl	FIUMICINO	SUNDRY CLEANING AND MAINTENANCE SERVICES	EURO	1,500,000	Aeroporti di Roma SpA	100%	95.92%
AEROPORTI DI ROMA SpA	FIUMICINO	AIRPORT MANAGEMENT AND DEVELOPMENT	EURO	62,224,743	Atlantia SpA	95.92%	95.92%
ADR MOBILITY Srl	FIUMICINO	MANAGEMENT OF AIRPORT CAR PARKING AND CAR PARKS	EURO	1,500,000	Aeroporti di Roma SpA	100%	95.92%
ADR SECURITY Srl	FIUMICINO	AIRPORT SCREENING AND SECURITY SERVICES	EURO	400,000	Aeroporti di Roma SpA	100%	95.92%
ADR SVILUPPO Srl	FIUMICINO	PROPERTY MANAGEMENT	EURO	100,000	Aeroporti di Roma SpA	100%	95.92%
						100%	95.92%
ADR TEL SpA	FIUMICINO	TELECOMMUNICATIONS	EURO	600,000	Aeroporti di Roma SpA	99.00%
					ADR Sviluppo Srl	1.00%

3. Consolidated financial statements as at and for the year ended 31 December 2015

NAME	REGISTERED OFFICE	BUSINESS	CURRENCY	AT 31 DECEMBER 2015 CONSORTIUM FUND AS (IN SHARES/UNITS) SHARE CAPITAL/	HELD BY	% INTEREST IN SHARE CAPITAL/ CONSORTIUM FUND AS AT 31 DECEMBER 2015	OVERALL GROUP % INTEREST	NOTE
AB CONCESSÕES SA	SAO PAULO (BRAZIL)	HOLDING COMPANY	BRAZILIAN REAL	738,652,989	Participações Brasil limitada Autostrade Concessões e	50.00%	50.00%	(1)
						100%	100%
AUTOSTRADE CONCESSÕES E PARTICIPACÕES BRASIL	SAO PAULO	HOLDING COMPANY	BRAZILIAN REAL	729,590,863	Autostrade Portugal - Concessoes de Infrastructuras SA	25.00%
LIMITADA	(BRAZIL)				Autostrade dell'Atlantico Srl	41.14%
					Autostrade Holding do Sur SA	33.86%
AUTOSTRADE DELL'ATLANTICO Srl	ROME	HOLDING COMPANY	EURO	1,000,000	Autostrade per l'Italia SpA	100%	100%
						100%	100%
AUTOSTRADE HOLDING DO SUR SA	SANTIAGO (CHILE)	HOLDING COMPANY	CHILEAN PESO	51,496,805,692	Autostrade dell'Atlantico Srl	99.99%
					Autostrade per l'Italia SpA	0.01%
						100%	100%
AUTOSTRADE INDIAN INFRASTRUCTURE DEVELOPMENT PRIVATE LIMITED	MUMBAI - MAHARASHTRA (INDIA)	HOLDING COMPANY	INDIAN RUPEE	500,000	Autostrade per l'Italia SpA	99.99%
					Spea Engineering SpA	0.01%
AUTOSTRADE MERIDIONALI SpA	NAPLES	MOTORWAY OPERATION AND CONSTRUCTION	EURO	9,056,250	Autostrade per l'Italia SpA	58.98%	58.98%	(2)
AUTOSTRADE PER L'ITALIA SpA	ROME	MOTORWAY OPERATION AND CONSTRUCTION	EURO	622,027,000	Atlantia SpA	100%	100%
AUTOSTRADE PORTUGAL - CONCESSÕES DE INFRAESTRUCTURAS SA	(PORTUGAL) LISBON	HOLDING COMPANY	EURO	30,000,000	Autostrade dell'Atlantico Srl	100%	100%
AUTOSTRADE TECH SpA	ROME	INFORMATION SYSTEMS AND EQUIPMENT FOR THE CONTROL AND AUTOMATION OF TRAFFIC AND ROAD SAFETY	EURO	1,120,000	Autostrade per l'Italia SpA	100%	100%
CONCESSIONÁRIA DA RODOVIA MG050 SA	SAO PAULO (BRAZIL)	MOTORWAY OPERATION AND CONSTRUCTION	BRAZILIAN REAL	113,525,350	AB Concessões SA	100%	50.00%

(1) The Atlantia Group holds 50% plus one share in the companies and exercises control on the base of partnership and governance agreements.

(2) The company is listed on Borsa Italiana SpA's Expandi market.

NAME	REGISTERED OFFICE	BUSINESS	CURRENCY	AT 31 DECEMBER 2015 CONSORTIUM FUND AS (IN SHARES/UNITS) SHARE CAPITAL/	HELD BY	% INTEREST IN SHARE CAPITAL/ CONSORTIUM FUND AS AT 31 DECEMBER 2015	OVERALL GROUP % INTEREST	NOTE
DANNII HOLDING GMBH	(AUSTRIA) VIENNA	ACQUISITION AND MANAGEMENT OF INVESTMENTS	EURO	10,000	Autostrade Tech SpA	100%	100%
ECOMOUV SAS.	(FRANCE) PARIS	FINANCING/DESIGN/CONSTRUCTION/OPERATION OF EQUIPMENT REQURIED FOR ECO-TAXE	EURO	30,000,000	Autostrade per l'Italia SpA	70.00%	70.00%
ELECTRONIC TRANSACTION CONSULTANTS Co.	RICHARDSON (TEXAS - USA)	MANAGEMENT OF AUTOMATED TOLLING SERVICES	US DOLLAR	20,000,000	Autostrade dell'Atlantico Srl	64.46%	64.46%
ESSEDIESSE SOCIETÀ DI SERVIZI SpA	ROME	GENERAL AND ADMINISTRATIVE SERVICES	EURO	500,000	Autostrade per l'Italia SpA	100%	100%
FIUMICINO ENERGIA Srl	FIUMICINO	ELECTRICITY PRODUCTION	EURO	741,795	Atlantia SpA	87.14%	87.14%
GIOVE CLEAR Srl	ROME	SUNDRY CLEANING AND MAINTENANCE SERVICES	EURO	10,000	Autostrade per l'Italia SpA	100%	100%
GRUPO COSTANERA SpA	SANTIAGO (CHILE)	HOLDING COMPANY	CHILEAN PESO	465,298,430,418	Autostrade dell'Atlantico Srl	50.01%	50.01%
INFOBLU SpA	ROME	TRAFFIC INFORMATION	EURO	5,160,000	Autostrade per l'Italia SpA	75.00%	75.00%
						100%	88.02%
LEONARDO ENERGIA – SOCIETA' CONSORTILE a r.l.	FIUMICINO	ELECTRICITY PRODUCTION	EURO	10,000	Aeroporti di Roma SpA Fiumicino Energia Srl	90.00% 10.00%
MIZARD Srl	ROME	ACQUISITION, SALE AND MANAGEMENT OF INVESTMENTS IN IT SERVICES COMPANIES	EURO	10,000	Atlantia SpA	100%	100%

1. Consolidated financial statements as at and for the year ended 31 December 2015

Annual Report 2015 222

NAME	REGISTERED OFFICE	BUSINESS	CURRENCY	AT 31 DECEMBER 2015 CONSORTIUM FUND AS (IN SHARES/UNITS) SHARE CAPITAL/	HELD BY	% INTEREST IN SHARE CAPITAL/ CONSORTIUM FUND AS AT 31 DECEMBER 2015	OVERALL GROUP % INTEREST	NOTE
PAVIMENTAL POLSKA SP.ZO.O.	WARSAW (POLAND)	MOTORWAY AND AIRPORT CONSTRUCTION AND MAINTENANCE	POLISH ZLOTY	3,000,000	Pavimental SpA	100%	98.58%
						99.40%	98.58%
PAVIMENTAL SpA	ROME	MOTORWAY AND AIRPORT CONSTRUCTION AND MAINTENANCE	EURO	10,116,452	Autostrade per l'Italia SpA Aeroporti di Roma SpA Atlantia SpA	59.40% 20.00% 20.00%
RACCORDO AUTOSTRADALE VALLE D'AOSTA SpA	AOSTA	MOTORWAY OPERATION AND CONSTRUCTION	EURO	343,805,000	per il Traforo del Monte Bianco Società Italiana per Azioni	47.97%	24.46%	(3)
ROMULUS FINANCE Srl	CONEGLIANO	SECURITISATION VEHICLE	EURO	10,000			N/A	(4)
RODOVIA DAS COLINAS SA	SAO PAULO (BRAZIL)	MOTORWAY OPERATION AND CONSTRUCTION	BRAZILIAN REAL	226,145,401	AB Concessões SA	100%	50.00%
	SANTIAGO (CHILE)					100%	50.01%
SOCIEDAD CONCESIONARIA AMB SA		MOTORWAY OPERATION AND CONSTRUCTION	CHILEAN PESO	5,875,178,700	Grupo Costanera SA	99.98%
					Sociedad Gestion Vial SA	0.02%
						100%	50.01%
SOCIEDAD CONCESIONARIA AUTOPISTA NORORIENTE SA	SANTIAGO (CHILE)	MOTORWAY OPERATION AND CONSTRUCTION	CHILEAN PESO	22,738,904,654	Grupo Costanera SA	99.90%
					Sociedad Gestion Vial SA	100% 0.10%	50.01%
SOCIEDAD CONCESIONARIA AUTOPISTA NUEVA VESPUCIO SUR SA	SANTIAGO	HOLDING COMPANY	CHILEAN PESO	166,967,672,229	Grupo Costanera SA	99.99996%
	(CHILE)				Sociedad Gestion Vial SA	0.00004%
						100%	50.01%
SOCIEDAD CONCESIONARIA COSTANERA NORTE SA	SANTIAGO (CHILE)	MOTORWAY OPERATION AND CONSTRUCTION	CHILEAN PESO	58,859,765,519	Sociedad Gestion Vial SA Grupo Costanera SA	99.99804% 0.00196%
						100%	100%
SOCIEDAD CONCESIONARIA DE LOS LAGOS SA	LLANQUIHUE (CHILE)	MOTORWAY OPERATION AND CONSTRUCTION	CHILEAN PESO	53,602,284,061	Autostrade Holding Do Sur SA	99.95238%
					Autostrade dell'Atlantico Srl	0.04762%
		(3) The issued capital is made up of €284,350,000 in ordinary shares and €59,455,000 in preference shares. The percentage interest is calculated with reference to all shares in issue, whereas the 58.00% of voting rights is calculated with reference to ordinary voting shares.

(4) A special purpose entity, established pursuant to Law 130/99, through which Aeroporti di Roma SpA's creditor banks securitised a portion of the amount receivable from the company as at 14 February 2003; in accordance with IFRS, the Group's interest in the company is considered on a par with full control.

NAME	REGISTERED OFFICE	BUSINESS	CURRENCY	AT 31 DECEMBER 2015 CONSORTIUM FUND AS (IN SHARES/UNITS) SHARE CAPITAL/	HELD BY	% INTEREST IN SHARE CAPITAL/ CONSORTIUM FUND AS AT 31 DECEMBER 2015	OVERALL GROUP % INTEREST	NOTE
						100%	50.01%
SOCIEDAD CONCESIONARIA LITORAL CENTRAL SA	SANTIAGO (CHILE)	MOTORWAY OPERATION AND CONSTRUCTION	CHILEAN PESO	18,368,224,675	Grupo Costanera SA	99.99%
					Sociedad Gestion Vial SA	0.01%
						100%	50.01%
SOCIEDAD CONCESIONARIA VESPUCIO SUR SA	SANTIAGO (CHILE)	MOTORWAY OPERATION AND CONSTRUCTION	CHILEAN PESO	52,967,792,704	Sociedad Concesionaria Autopista Nueva Vespucio Sur SA	99.9975%
					Sociedad Gestion Vial SA	0.0025%
						100%	50.01%
SOCIEDAD GESTION VIAL SA	SANTIAGO (CHILE)	CONSTRUCTION AND MAINTENANCE OF ROADS AND TRAFFIC SERVICES	CHILEAN PESO	397,237,788	Grupo Costanera SA	99.99%
					Sociedad Operacion y Logistica de Infraestructuras SA	0.01%
						100%	50.01%
SOCIEDAD OPERACION Y LOGISTICA DE INFRAESTRUCTURAS SA	SANTIAGO (CHILE)	CONCESSION CONTRUCTION AND SERVICES	CHILEAN PESO	11,736,819	Grupo Costanera SA	99.99%
					Sociedad Gestion Vial SA	0.01%
SOCIETÀ AUTOSTRADA TIRRENICA SpA	ROME	MOTORWAY OPERATION AND CONSTRUCTION	EURO	24,460,800	Autostrade per l'Italia SpA	99.93%	99.99%	(5)
SOCIETÀ ITALIANA PER AZIONI PER IL TRAFORO DEL MONTE BIANCO	PRE' SAINT DIDIER	MONT BLANC TUNNEL OPERATION AND CONSTRUCTION	EURO	198,749,200	Autostrade per l'Italia SpA	51.00%	51.00%
SOLUCIONA CONSERVACAO RODOVIARIA LTDA	MATAO (BRAZIL)	MOTORWAY MAINTENANCE	BRAZILIAN REAL	500,000	AB Concessões SA	100%	50.00%
						100%	99.18%
SPEA DO BRASIL PROJETOS E INFRA ESTRUTURA LIMITADA	SAO PAULO (BRAZIL)	INTEGRATED TECHNICAL AND ENGINEERING SERVICES	BRAZILIAN REAL	1,000,000	Spea Engineering SpA	99.99%
					Austostrade Concessoes e Partecipacoes Brasil Limitada	0.01%
						100%	99.18%
SPEA ENGINEERING SPA	ROME	INTEGRATED TECHNICAL AND ENGINEERING SERVICES	EURO	6,966,000	Atlantia SpA	60.00%
					Austostrade per l'Italia SpA	20.00%
					Aeroporti di Roma SpA	20.00%
STALEXPORT AUTOROUTE SAR.L.	(LUXEMBOURG) LUXEMBOURG	MOTORWAY SERVICES	EURO	56,149,500	Stalexport Autostrady SA	100%	61.20%
shares held by Autostrade per l'Italia and the subsidiary's total shares is 99.93% ).		(5) On 29 December 2015, Autostrada Tirrenica, following authorisation by the general meeting of shareholders held on the same date, purchased 109,600 own shares from non-controlling shareholders. Autostrade per l'Italia's interest is, therefore, equal to 99.99% as at 31 December 2015 (the percentage interest calculated on the basis of the ratio of

NAME	REGISTERED OFFICE	BUSINESS	CURRENCY	AT 31 DECEMBER 2015 CONSORTIUM FUND AS (IN SHARES/UNITS) SHARE CAPITAL/	HELD BY	% INTEREST IN SHARE CAPITAL/ CONSORTIUM FUND AS AT 31 DECEMBER 2015	OVERALL GROUP % INTEREST	NOTE
STALEXPORT AUTOSTRADA MAŁOPOLSKA SA	MYSŁOWICE (POLAND)	MOTORWAY OPERATION AND CONSTRUCTION	POLISH ZLOTY	66,753,000	Stalexport Autoroute SAr.l.	100%	61.20%
STALEXPORT AUTOSTRADY SA	MYSLOWICE (POLAND)	HOLDING COMPANY	POLISH ZLOTY	185,446,517	Autostrade per l'Italia SpA	61.20%	61.20%	(6)
TANGENZIALE DI NAPOLI SpA	NAPLES	MOTORWAY OPERATION AND CONSTRUCTION	EURO	108,077,490	Autostrade per l'Italia SpA	100%	100%
TECH SOLUTIONS INTEGRATORS SAS. (IN LIQUIDATION)	(FRANCE) PARIS	CONSTRUCTION, INSTALLATION AND MAINTENANCE OF ELECTRONIC TOLLING SYSTEMS	EURO	2,000,000	Autostrade per l'Italia SpA	100%	100%
						100%	100%
TELEPASS SpA	ROME	AUTOMATED TOLLING SERVICES	EURO	26,000,000	Autostrade per l'Italia SpA	96.15%
					Autostrade Tech SpA	3.85%
TRIANGULO DO SOL AUTO-ESTRADAS SA	MATAO (BRAZIL)	MOTORWAY OPERATION AND CONSTRUCTION	BRAZILIAN REAL	71,000,000	Atlantia Bertin Concessoes SA	100%	50.00%
VIA4 SA	MYSŁOWICE (POLAND)	MOTORWAY SERVICES	POLISH ZLOTY	500,000	Stalexport Autoroute SAr.l.	55.00%	33.66%

(6) The company is listed on the Warsaw stock exchange.

				(IN SHARES/UNITS)		DECEMBER 2015
INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD
Associates
AUTOSTRADE FOR RUSSIA GMBH	(AUSTRIA) VIENNA	HOLDING COMPANY	EURO	60,000	Autostrade Tech SpA	25.50%
BOLOGNA & FIERA PARKING SpA	BOLOGNA	DESIGN, CONSTRUCTION AND MANAGEMENT OF MULTI-LEVEL PUBLIC CAR PARKS	EURO	2,715,200	Autostrade per l'Italia SpA	36.81%
BIURO CENTRUM SP. Z O.O.	KATOWICE (POLAND)	ADMINISTRATIVE SERVICES	POLISH ZLOTY	80,000	Stalexport Autostrady SA	40.63%
PEDEMONTANA VENETA SpA (IN LIQUIDATION)	VERONA	MOTORWAY OPERATION AND CONSTRUCTION	EURO	6,000,000	Autostrade per l'Italia SpA	29.77%
SOCIETA' INFRASTRUTTURE TOSCANE SpA	ROME	MOTORWAY OPERATION AND CONSTRUCTION	EURO	15,000,000	Autostrade per l'Italia SpA	46.60% 46.00%
(IN LIQUIDATION)					Spea Engineering SpA	0.60%
Joint ventures
A&T ROAD CONSTRUCTION MANAGEMENT AND OPERATION PRIVATE LIMITED	PUNE - MAHARASHTRA (INDIA)	OPERATION AND MAINTENANCE, DESIGN AND PROJECT MANAGEMENT	INDIAN RUPEE	100,000	Autostrade Indian Infrastracture Development Private Limited	50.00%
CONCESSIONÁRIA RODOVIAS DO TIETÊ SA	SAO PAULO (BRAZIL)	MOTORWAY OPERATION AND CONSTRUCTION	BRAZILIAN REAL	303,578,476	AB Concessões SA	50.00%
GEIE DEL TRAFORO DEL MONTE BIANCO	COURMAYEUR	MAINTENANCE AND OPERATION OF MONT BLANC TUNNEL	EURO	2,000,000	Società Italiana per Azioni per il Traforo del Monte Bianco	50.00%
PUNE SOLAPUR EXPRESSWAYS PRIVATE LIMITED	NEW DELHI (INDIA)		INDIAN RUPEE	100,000,000	Atlantia SpA	50.00%

3. Consolidated financial statements as at and for the year ended 31 December 2015

NAME	REGISTERED OFFICE	BUSINESS	CURRENCY	AT 31 DECEMBER 2015 CONSORTIUM FUND AS (IN SHARES/UNITS) SHARE CAPITAL/	HELD BY	% INTEREST IN SHARE CAPITAL/ CONSORTIUM FUND AS AT 31 DECEMBER 2015
INVESTMENTS ACCOUNTED FOR AT COST OR FAIR VALUE
Imprese controllate non consolidate
DOMINO Srl	FIUMICINO	SERVIZI INTERNET	EURO	10,000	Atlantia SpA	100%
GEMINA FIDUCIARY SERVICES SA	LUSSEMBURGO (LUSSEMBURGO)	FIDUCIARIA	EURO	150,000	Atlantia SpA	99.99%
PAVIMENTAL EST AO (IN LIQUIDATION)	MOSCA (RUSSIA)	COSTRUZIONE E MANUTENZIONE AUTOSTRADALE	RUBLO RUSSO	4,200,000	Pavimental SpA	100%

PETROSTAL SA (IN LIQUIDATION) VARSAVIA (POLAND) SERVIZI IMMOBILIARI ZLOTY POLACCO 2,050,500 Stalexport Autostrady SA 100%

NAME	REGISTERED OFFICE	BUSINESS	CURRENCY	AT 31 DECEMBER 2015 CONSORTIUM FUND AS (IN SHARES/UNITS) SHARE CAPITAL/	HELD BY	% INTEREST IN SHARE CAPITAL/ CONSORTIUM FUND AS AT 31 DECEMBER 2015
Other investments
AEROPORTO DI GENOVA SpA	GENOVA	GESTIONE AEROPORTUALE	EURO	7,746,900	Aeroporti di Roma SpA	15.00%
CENTRO INTERMODALE TOSCANO AMERIGO VESPUCCI SpA	LIVORNO	CENTRO DI SMISTAMENTO MERCI	EURO	11,756,695	Società Autostrada Tirrenica p.A.	0.43%
COMPAGNIA AEREA ITALIANA SpA	FIUMICINO	TRASPORTO AEREO	EURO	359,026,536	Atlantia SpA	7.02%
DIRECTIONAL CAPITAL HOLDINGS (IN LIQUIDATION)	CHANNEL ISLANDS (STATI UNITI)	FINANZIARIA	EURO	150,000	Atlantia SpA	5.00%
EMITTENTI TITOLI SpA	MILAN	PARTECIPAZIONE IN BORSA S.p.A.	EURO	4,264,000	Atlantia SpA	7.24%
FIRENZE PARCHEGGI SpA	FIRENZE	GESTIONE PARCHEGGI	EURO	25,595,158	Atlantia SpA	5.47%
HUTA JEDNOŚĆ SA	SIEMIANOWICE (POLAND)	COMMERCIALIZZAZIONE ACCIAIO	POLACCO ZLOTY	27,200,000	Stalexport Autostrady SA	2.40%
INWEST STAR SA (IN LIQUIDATION)	STARACHOWICE (POLAND)	COMMERCIALIZZAZIONE ACCIAIO	POLACCO ZLOTY	11,700,000	Stalexport Autostrady SA	0.26%
ITALMEX SpA (IN LIQUIDATION)	MILAN	AGENZIA DI COMMERCIO	EURO	1,464,000	Stalexport Autostrady SA	4.24%
LUSOPONTE - CONCESSIONARIA PARA A TRAVESSIA DO TEJO	(PORTOGALLO) SA MONTIJO	CONCESSIONARIA AUTOSTRADALE	EURO	25,000,000	Concessoes de Infraestructuras SA Autostrade Portugal -	17.21%

HELD BY

NAME	REGISTERED OFFICE	BUSINESS	CURRENCY	AT 31 DECEMBER 2015 CONSORTIUM FUND AS (IN SHARES/UNITS) SHARE CAPITAL/	HELD BY	% INTEREST IN SHARE CAPITAL/ CONSORTIUM FUND AS AT 31 DECEMBER 2015
LIGABUE GATE GOURMET ROMA SpA (INSOLVENT )	TESSERA	AIRPORT CATERING	EURO	103,200	Aeroporti di Roma SpA	20.00%
KONSORCJUM AUTOSTRADA ŚLĄSK SA	KATOWICE (POLAND)	MOTORWAY OPERATION AND CONSTRUCTION	POLISH ZLOTY	1,987,300	Stalexport Autostrady SA	5.43%
SACAL. SpA	LAMEZIA TERME	AIRPORT MANAGEMENT	EURO	7,755,000	Aeroporti di Roma SpA	16.57%
SOCIETA' DI PROGETTO BREBEMI SpA	BRESCIA	MOTORWAY OPERATION AND CONSTRUCTION	EURO	180,000,000	Spea Engineering SpA	0.06%
						1.25%
TANGENZIALE ESTERNA SpA	MILAN	MOTORWAY OPERATION AND CONSTRUCTION	EURO	464,945,000	Autostrade per l'Italia SpA	0.25%
					Pavimental SpA	1.00%
TANGENZIALI ESTERNE DI MILANO SpA	MILAN	CONSTRUCTION AND OPERATION OF MILAN RING ROAD	EURO	220,344,608	Autostrade per l'Italia SpA	13.67%
UIRNET SpA	ROME	OPERATION OF NATIONAL LOGISTICS NETWORK	EURO	1,061,000	Autostrade per l'Italia SpA	1.51%
VENETO STRADE SpA	VENICE	CONSTRUCTION AND MAINTENANCE OF ROADS AND TRAFFIC SERVICES	EURO	5,163,200	Autostrade per l'Italia SpA	5.00%
WALCOWNIA RUR JEDNOŚĆ SP. Z O. O.	SIEMIANOWICE (POLAND)	STEEL TRADING	POLISH ZLOTY	220,590,000	Stalexport Autostrady SA	0.01%
ZAKŁADY METALOWE DEZAMET SA	NOWA DĘBA (POLAND)	STEEL TRADING	POLISH ZLOTY	19,241,750	Stalexport Autostrady SA	0.26%

IN SHARE CAPITAL/	UM FUND AS AT 31
		EMBER 2015

NAME	REGISTERED OFFICE	BUSINESS	CURRENCY	AT 31 DECEMBER 2015 CONSORTIUM FUND AS (IN SHARES/UNITS) SHARE CAPITAL/	HELD BY	% INTEREST IN SHARE CAPITAL/ CONSORTIUM FUND AS AT 31 DECEMBER 2015
CONSORTIA
CONSORCIO ANHANGUERA NORTE	RIBERAO PRETO (BRAZIL)	CONSORZIO DI COSTRUZIONE	BRAZILIAN REAL	-	Autostrade Concessoes e Participacoes Brasil	13.13%
						34.50%
					Autostrade per l'Italia SpA	27.30%
					Tangenziale di Napoli SpA	2.00%
CONSORZIO AUTOSTRADE ITALIANE ENERGIA	ROMA	APPROVVIGIONAMENTO SUL MERCATO ELETTRICO	EURO	113,949	per il Traforo del Monte Bianco Società Italiana per Azioni	1.90%
					Raccordo Autostradale Valle d'Aosta SpA	1.10%
					Società Autostrada Tirrenica p.A.	0.30%
					Autostrade Meridionali SpA	0.90%
					Pavimental SpA	1.00%
CONSORZIO COSTRUTTORI TEEM	TORTONA	ESECUZIONE OPERE E ATTIVITA' AUTOSTRADALI	EURO	10,000	Pavimental SpA	1.00%
CONSORZIO E.T.L. – EUROPEAN TRANSPORT LAW (IN LIQUIDATION)	ROMA	STUDIO REGOLE EUROPEE SUL TRASPORTO	EURO	82,633	Aeroporti di Roma SpA	25.00%
CONSORZIO GALILEO SCARL (IN LIQUIDATION)	TODI	REALIZZAZIONE PIAZZALI AEROPORTI	EURO	10,000	Pavimental SpA	40.00%
CONSORZIO ITALTECNASUD (IN LIQUIDATION)	ROMA	CONTROLLO FONDI TERREMOTO IRPINIA	EURO	51,646	Spea Engineering SpA	20.00%
CONSORZIO MIDRA	FIRENZE	TECNOLOGIA DI BASE DEI DISPOSITIVI RICERCA SCIENTIFICA PER LA	EURO	73,989	Autostrade Tech SpA	33.33%
CONSORZIO MITECO	PESCHIERA BORROMEO	ESECUZIONE DI ATTIVITA' E LAVORI AFFIDATI DA TANGENZIALE ESTERNA S.P.A	EURO	10,000	Pavimental SpA	1.30%
CONSORZIO NUOVA ROMEA ENGINEERING	MONSELICE	PROGETTAZIONE AUTOSTRADALE	EURO	60,000	Spea Engineering SpA	16.67%
CONSORZIO PEDEMONTANA ENGINEERING	VERONA	DESIGN OF PEDEMONTANA VENETA MOTORWAY	EURO	20,000	Spea Engineering SpA	23.54%
CONSORZIO RAMONTI S.C.A.R.L. (IN LIQUIDATION)	TORTONA	MOTORWAY CONSTRUCTION	EURO	10,000	Pavimental SpA	49.00%
CONSORZIO R.F.C.C. (IN LIQUIDATION)	TORTONA	CONSTRUCTION OF MOROCCAN ROAD NETWORK	EURO	510,000	Pavimental SpA	30.00%
CONSORZIO SPEA-GARIBELLO	SAO PAULO (BRAZIL)	INTEGRATED TECHNICAL ENGINEERING SERVICES - HIGHWAY MG-050	BRAZILIAN REAL	-	SPEA do Brasil Projetos e Infra Estrutura Limitada	50.00%
CONSORZIO TANGENZIALE ENGINEERING	MILAN	INTEGRATED TECHNICAL ENGINEERING SERVICES - MILAN EXTERNAL RING ROAD EAST	EURO	20,000	Spea Engineering SpA	30.00%

NAME	REGISTERED OFFICE	BUSINESS	CURRENCY	AT 31 DECEMBER 2015 CONSORTIUM FUND AS (IN SHARES/UNITS) SHARE CAPITAL/	HELD BY	% INTEREST IN SHARE CAPITAL/ CONSORTIUM FUND AS AT 31 DECEMBER 2015
CONSORZIO TRINACRIA S.C.A.R.L. (IN LIQUIDATION)	LIMENA	CONSTRUCTION OF AIRPORT APRONS	EURO	10,000	Pavimental SpA	47.73%
CONSORZIO 2050	ROME	MOTROWAY DESIGN	EURO	50,000	Spea Engineering SpA	0.50%
						100%
COSTRUZIONI IMPIANTI AUTOSTRADALI S.C.A.R.L.	ROME	CONSTRUCTION OF PUBLIC WORKS AND INFRASTRUCTURE	EURO	10,000	Autostrade Tech SpA Pavimental SpA	75.00% 20.00%
					Pavimental Polska Sp. z o.o.	5.00%
ELMAS S.C.A.R.L. (IN LIQUIDATION)	ROME	CONSTRUCTION AND MAINTENANCE OF AIRPORT RUNWAYS AND APRONS	EURO	10,000	Pavimental SpA	60.00%
IDROELETTRICA S.C.A.R.L.	CHATILLON	ELECTRICITY GENERATION	EURO	50,000	Raccordo Autostradale Valle d'Aosta SpA	0.10%
LAMBRO S.C.A.R.L.	TORTONA	OPERATION AND CONSTRUCTION ON BEHALF OF TEEM CONSTRUCTION CONSORTIUM	EURO	200,000	Pavimental SpA	2.78%
SAT LAVORI S.C.A.R.L.	ROME	CONSTRUCTION CONSORTIUM	EURO	100,000	Società Autostrada Tirrenica p.A.	1.00%
INVESTMENTS ACCOUNTED FOR IN CURRENT ASSETS
DOM MAKLERSKI BDM SA	BIELSKO-BIAŁA (POLAND)	HOLDING COMPANY	POLISH ZLOTY	19,796,924	Stalexport Autostrady SA	2.71%
IDEON SA	KATOWICE (POLAND)	STEEL TRADING	POLISH ZLOTY	343,490,781	Stalexport Autostrady SA	2.63%
STRADA DEI PARCHI SpA	ROME	MOTORWAY OPERATION AND CONSTRUCTION	EURO	48,114,240	Autostrade per l'Italia SpA	2.00%

ANNEX 2

DISCLOSURES PURSUANT TO ART.149-DUODECIES OF THE CONSOB REGULATIONS FOR ISSUERS 11971/1999

Disclosure pursuant to art.149-duodecies of the CONSOB regulations for issuers 11971/1999

Atlantia SpA

Atlantia SpA
Type of service	Provider of service	Note	Fees (€000)
Audit	Parent Company's auditor		3 6
Certification	Parent Company's auditor	(1)	2 3
Other services	Parent Company's auditor	(2)	1 5
Other services	Associate of Parent Company's auditor	(3)	3 0
Total Atlantia SpA			104

Subsidiaries

Type of service	Provider of service	Note	Fees (€000)
Audit	Parent Company's auditor		475
Audit	Associate of Parent Company's auditor		468
Certification	Parent Company's auditor	(4)	2 3
Other services	Parent Company's auditor	(5)	151
Other services	Associate of Parent Company's auditor	(6)	132
Total subsidiaries			1,249
Total Atlantia Group			1,353

(1) Opinion on payment of the interim dividend.

(2) Signature of Consolidated Tax Return and Form 770, agreed upon procedures on accounting data and information.

(3) Review of the Sustainability Report.

(4) Opinion on payment of the interim dividend.

(5) Signature of Consolidated Tax Return and Form 770, agreed upon procedures on accounting data and information and comfort letters for loans, services relating to the internal control system.

(6) Agreed upon procedures on accounting data and information and checks on income tax applied to employees and obligations as withholding agent.

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Annual Report 2015 234

Separate financialstatements as at and for the year ended 31 December2015 and notes 4

4.Bilancio di esercizio As at 31 December 2015:

prospetti contabili e note illustrative

235

ATLANTIA SPA'S FINANCIAL STATEMENTS

Statement of financial position (1)

€	31 December 2015	31 December 2014
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment	7,539,720	7,993,004
Property, plant and equipment	2,025,725	2,206,273
Investment property	5,513,995	5,786,731
Intangible assets	224,974	227,621
Investments	8,836,431,848	8,857,911,996
Non-current financial assets	7,078,406,899	9,003,591,242
Non-current derivative assets	216,685,760	245,232,387
Other non-current financial assets	6,861,721,139	8,758,358,855
Other non-current assets	274,937	335,978
TOTAL NON-CURRENT ASSETS	15,922,878,378	17,870,059,841
CURRENT ASSETS
Trading assets	4,280,445	4,446,988
Trade receivables	4,280,445	4,446,988
Cash and cash equivalents	417,479,529	465,320,239
Cash	4,150,640	2,374,658
Cash equivalents	400,000,000	250,000,000
Intercompany current account receivables due from related parties	13,328,889	212,945,581
Other current financial assets	1,109,271,459	267,637,278
Current portion of medium/long-term financial assets	1,102,323,741	259,469,629
Other current financial assets	6,947,718	8,167,649
Current tax assets	29,455,350	31,281,702
Other current assets	28,477,672	1,303,661
Non-current assets held for sale and related to discontinued operations	-	-
TOTAL CURRENT ASSETS	1,588,964,455	769,989,868
TOTAL ASSETS	17,511,842,833	18,640,049,709

(1) As required by CONSOB Resolution 15519 of 27 July 2006, the impact of related party transactions on Atlantia SpA's statement of financial position are shown in the statement of financial position, expressed in thousands of euros, on the following pages. The impact is also described in further detail in note 7.2.

Statement of financial position

€	31 December 2015	31 December 2014
EQUITY AND LIABILITIES
EQUITY
Issued capital	825,783,990	825,783,990
Reserves and retained earnings	8,517,467,265	8,419,605,878
Treasury shares	-38,984,692	-204,967,766
Profit/(Loss) for the year net of interim dividends	404,063,684	397,552,656
TOTAL EQUITY	9,708,330,247	9,437,974,758
NON-CURRENT LIABILITIES
Non-current provisions	749,143	896,583
Non-current provisions for employee benefits	749,143	896,583
Non-current financial liabilities	6,627,153,731	8,869,037,007
Bond issues	6,418,135,566	8,589,586,045
Non-current derivative liabilities	209,018,165	279,450,962
Deferred tax liabilities	35,548,838	40,782,944
Other non-current liabilities	3,889,473	1,162,489
TOTAL NON-CURRENT LIABILITIES	6,667,341,185	8,911,879,023
CURRENT LIABILITIES
Trading liabilities	4,660,311	6,223,738
Trade payables	4,660,311	6,223,738
Current provisions	1,675,365	1,567,732
Current provisions for employee benefits	138,833	31,200
Other current provisions	1,536,532	1,536,532
Current financial liabilities	1,091,876,099	250,866,904
Bank overdrafts	73	126
Current portion of medium/long-term financial liabilities	1,091,549,927	249,584,263
Other current financial liabilities	326,099	1,282,515
Current tax liabilities	18,126,593	14,372,000
Other current liabilities	19,833,033	17,165,554
Liablities related to discontinued operations	-	-
TOTAL CURRENT LIABILITIES	1,136,171,401	290,195,928
TOTAL LIABILITIES	7,803,512,586	9,202,074,951
TOTAL EQUITY AND LIABILITIES	17,511,842,833	18,640,049,709

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Income statement (2)

€	2015	2014
REVENUE
Operating income	2,100,243	1,592,158
TOTAL REVENUE	2,100,243	1,592,158
COSTS
Raw and consumable materials	-65,697	-30,955
Service costs	-11,765,462	-9,247,209
Staff costs	-15,448,910	-8,523,127
Other operating costs	-4,699,288	-4,879,635
Lease expense	-1,045,295	-548,317
Other	-3,653,993	-4,331,318
Amortisation and depreciation	-469,427	-470,491
Depreciation of property, plant and equipment	-187,326	-188,591
Depreciation of investment property	-279,454	-279,253
Amortisation of intangible assets	-2,647	-2,647
TOTAL COSTS	-32,448,784	-23,151,417
OPERATING PROFIT/(LOSS)	-30,348,541	-21,559,259
Financial income	1,397,657,130	1,210,661,258
Dividends received from investees	794,023,295	670,009,565
Other financial income	603,633,835	540,651,693
Financial expenses	-631,870,597	-577,363,022
Financial expenses from discounting of provisions	-8,250	-11,703
Impairment losses on financial assets and investments	-36,248,533	-44,111,648
Other financial expenses	-595,613,814	-533,239,671
Foreign exchange gains/(losses)	470,371	397,982
FINANCIAL INCOME/(EXPENSES)	766,256,904	633,696,218
PROFIT/(LOSS) BEFORE TAX FROM CONTINUING OPERATIONS	735,908,363	612,136,959
Income tax (expense)/benefit	-2,499,441	-4,896,918
Current tax expense	-5,191,436	-5,083,505
Differences on tax expense for previous years	1,138,430	-174,845
Deferred tax income and expense	1,553,565	361,432
PROFIT/(LOSS) FROM CONTINUING OPERATIONS	733,408,922	607,240,041
Profit/(Loss) from discontinued operations	-	78,976,675
PROFIT FOR THE YEAR	733,408,922	686,216,716

(2) As required by CONSOB Resolution 15519 of 27 July 2006, the impact of related party transactions and components of income deriving from non-recurring transactions on Atlantia SpA's income statement are shown in the income statement, expressed in thousands of euros, on the following pages. The impact is also described in further detail in notes 7.2 and 5.10.

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Statement of financial position

			of which related		of which related
€000	NOTE	31 December 2015	party transactions	31 December 2014	party transactions
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment	4.1	7,540		7,992
Property, plant and equipment		2,026		2,207
Investment property		5,514		5,785
Intangible assets	4.2	225		228
Investments	4.3	8,836,432		8,857,912
Non-current financial assets	4.4	7,078,407		9,003,591
Non-current derivative assets		216,686	216,123	245,232	245,232
Other non-current financial assets		6,861,721	6,860,865	8,758,359	8,757,890
Other non-current assets	4.5	275		337
TOTAL NON-CURRENT ASSETS		15,922,879		17,870,060
CURRENT ASSETS
Trading assets	4.6	4,280		4,447
Trade receivables		4,280	4,049	4,447	3,848
Cash and cash equivalents	4.7	417,480		465,322
Cash		4,151		2,376
Cash equivalents		400,000	400,000	250,000	250,000
Intercompany current account receivables due from related parties		13,329	13,329	212,946	212,946
Other current financial assets	4.4	1,109,271		267,637
Current portion of medium/long-term financial assets		1,102,324	1,077,109	259,470	236,649
Other current financial assets		6,947	6,820	8,167	8,038
Current tax assets	4.8	29,456	28,855	31,281	21,562
Other current assets	4.9	28,477	27,032	1,304	9 5
Non-current assets held for sale and related to discontinued operations		-		-
TOTAL CURRENT ASSETS		1,588,964		769,991
TOTAL ASSETS		17,511,843		18,640,051

Statement of financial position

			of which related		of which related
€000	NOTE	31 December 2015	party transactions	31 December 2014	party transactions
EQUITY AND LIABILITIES
EQUITY
Issued capital		825,784		825,784
Reserves and retained earnings		8,517,467		8,419,606
Treasury shares		-38,985		-204,968
Profit/(Loss) for the year net of interim dividends		404,064		397,553
TOTAL EQUITY 4.10		9,708,330		9,437,975
NON-CURRENT LIABILITIES
Non-current provisions	4.11	749		896
Non-current provisions for employee benefits		749		896
Non-current financial liabilities	4.12	6,627,154		8,869,037
Bond issues		6,418,136		8,589,586
Non-current derivative liabilities		209,018		279,451
Deferred tax liabilities	4.13	35,549		40,784
Other non-current liabilities	4.14	3,889	3,289	1,163	202
TOTAL NON-CURRENT LIABILITIES		6,667,341		8,911,880
CURRENT LIABILITIES
Trading liabilities	4.15	4,660		6,224
Trade payables		4,660	3,010	6,224	1,852
Current provisions	4.11	1,675		1,568
Current provisions for employee benefits		138		31
Other current provisions		1,537		1,537
Current financial liabilities	4.12	1,091,876		250,866
Current portion of medium/long-term financial liabilities		1,091,550		249,584
Other current financial liabilities		326		1,282
Current tax liabilities	4.8	18,127	13,779	14,372	14,361
Other current liabilities	4.16	19,834	13,833	17,166	15,538
Liablities related to discontinued operations		-		-
TOTAL CURRENT LIABILITIES		1,136,172		290,196
TOTAL LIABILITIES		7,803,513		9,202,076
TOTAL EQUITY AND LIABILITIES		17,511,843		18,640,051

Income statement

		of which related			of which related
€000	NOTE	2015	party	2014	party
			transactions		transactions
REVENUE
Operating income	5.1	2,100	2,002	1,592	912
TOTAL REVENUE		2,100		1,592
COSTS
Raw and consumable materials	5.2	-66		-31
Service costs	5.3	-11,765	-2,188	-9,247	-3,829
Staff costs	5.4	-15,449	-3,982	-8,523	-2,617
Other operating costs	5.5	-4,699		-4,879
Lease expense		-1,045	-748	-548	-288
Other		-3,654		-4,331
Amortisation and depreciation		-470		-471
Depreciation of property, plant and equipment	4.1	-188		-191
Depreciation of investment property	4.1	-279		-278
Amortisation of intangible assets	4.2	-3		-2
TOTAL COSTS		-32,449		-23,151
OPERATING PROFIT/(LOSS)		-30,349		-21,559
Financial income		1,397,658		1,210,661
Dividends received from investees		794,023		670,009
Other financial income		603,635	530,646	540,652	486,285
of which non-recurring	5.10	125,486	125,486	-	-
Financial expenses		-631,871		-577,363
Financial expenses from discounting of provisions		-8		-12
Impairment losses on financial assets and investments		-36,249		-44,111
Other financial expenses		-595,614	-31,594	-533,240	-26,953
of which non-recurring	5.10	-120,677		-
Foreign exchange gains/(losses)		470		398
FINANCIAL INCOME/(EXPENSES)	5.6	766,257		633,696
PROFIT/(LOSS) BEFORE TAX FROM CONTINUING OPERATIONS		735,908		612,137
Income tax (expense)/benefit	5.7	-2,499		-4,897
Current tax expense		-5,191		-5,083
Differences on tax expense for previous years		1,139		-175
Deferred tax income and expense		1,553		361
PROFIT/(LOSS) FROM CONTINUING OPERATIONS		733,409		607,240
Profit/(Loss) from discontinued operations	5.8	-		78,977
PROFIT FOR THE YEAR		733,409		686,217

€		2015	2014
Basic earnings per share	5.9	0.89	0.85
of which:
- from continuing operations		0.89	0.75
- from discontinued operations		-	0.10
Diluted earnings per share	5.9	0.89	0.85
of which:
- from continuing operations		0.89	0.75
- from discontinued operations		-	0.10

Statement of comprehensive income

€000	NOTE	2015	2014
Profit for the year (A)		733,409	686,217
Fair value gains/(losses) on cash flow hedges	4.10	-1,302	21,666
Other comprehensive income/(loss) for the year reclassifiable to profit or loss, after related taxation (B)		-1,302	21,666
Gains/(losses) from actuarial valuations of provisions for employee benefits	4.10	13	-90
Other comprehensive income/(loss) for the year not reclassifiable to profit or loss, after related taxation (C)		1 3	-90
Reclassifications of other components of comprehensive income to profit or loss for the year (D)		-	-
Total other comprehensive income/(loss) for the year, after related taxation (E=B+C+D)		-1,289	21,576
Comprehensive income for the year (A+E)		732,120	707,793

Statement of changes in equity

€000						Riserve e utili portati a nuovo
	Issued capital	premium reserve Share	reserve Legal	Extraordinary reserve	Reserve for purchase of treasury shares	Merger reserve	Cash flow hedge reserve	employment Reserve for gains and losses on actuarial benefits post	reserve for Contingent Value Rights Restricted	reserves Other	Retained earnings	and retained Reserves earnings	Treasury shares	Profit for the payment of year after interim dividend	Total equity
Balance as at 31 December 2013	825,784	154	261,410	4,814,608	208,368	2,987,182	35,437	-381	18,456	6,754	1,824	8,333,812	-208,368	377,858	9,329,086
Comprehensive income for the year	-	-	-	-	-	-	21,666	-90	-	-	-	21,576	-	686,217	707,793
Owner transactions and other changes
Final dividend (€0.391 per share)	-	-	-	-	-	-	-	-	-	-	-	-	-	-317,862	-317,862
Transfer of profit/(loss) for previous year to retained earnings	-	-	-	-	-	-	-	-	-	-	59,996	59,996	-	-59,996	-
Interim dividend (€0.355 per share)	-	-	-	-	-	-	-	-	-	-	-	-	-	-288,664	-288,664
Share-based incentive plans
Valuation	-	-	-	-	-	-	-	-	-	4,900	-	4,900	-	-	4,900
Exercise/conversion/lapse of options/units	-	-	-	3,400	-3,400	-	-	-	-	-446	143	-303	3,400	-	3,097
Riclassification for options/units settled in cash	-	-	-	-	-	-	-	-	-	-375	-	-375	-	-	-375
Balance as at 31 December 2014	825,784	154	261,410	4,818,008	204,968	2,987,182	57,103	-471	18,456	10,833	61,963	8,419,606	-204,968	397,553	9,437,975
Comprehensive income for the year	-	-	-	-	-	-	-1,302	13	-	-	-	-1,289	-	733,409	732,120
Owner transactions and other changes
Final dividend (€0.445 per share)	-	-	-	-	-	-	-	-	-	-	-	-	-	-366,309	-366,309
Transfer of profit/(loss) for previous year to retained earnings	-	-	-	-	-	-	-	-	-	-	31,244	31,244	-	-31,244	-
Interim dividend (€0.400 per share)	-	-	-	-	-	-	-	-	-	-	-	-	-	-329,345	-329,345
Sale of treasury shares	-	-	-	158,120	-158,120	-	-	-	-	69,832	-	69,832	158,120	-	227,952
Share-based incentive plans
Valuation	-	-	-	-	-	-	-	-	-	3,373	-	3,373	-	-	3,373
Exercise/conversion/lapse of options/units	-	-	-	7,863	-7,863	-	-	-	-	-6,170	1,576	-4,594	7,863	-	3,269
Riclassification for options/units settled in cash	-	-	-	-	-	-	-	-	-	-705	-	-705	-	-	-705
Balance as at 31 December 2015	825,784	154	261,410	4,983,991	38,985	2,987,182	55,801	-458	18,456	77,163	94,783	8,517,467	-38,985	404,064	9,708,330

Annual Report 2015 244

Statement of cash flows

				of which related
		party transactions		party transactions
5.6
5.6
	-
		-32,473		-31,036
6.1
4.1
4.3		-199		-71,859
	-
		1,057,783		1,898,389
6.1
	-
4.12
		-337		-4,370
6.1
		NOTE	of which related 2015 733,409 470 3 8 36,249 -1,553 3,456 -21,040 751,002 -15 -9,225 61 1,062,331 1,053,152 -695,639 231,221 -1,351,250 -36,328 -1,851,996 -47,842 465,322 417,480	2014 686,217 471 8 12 44,111 -74,501 -361 3,592 -5,638 653,911 -54 -99,082 94,659 30 1,943,167 1,938,720 -895,100 3,097 195,870 -2,094,200 -42,993 -2,833,326 -240,695 706,017 465,322

Additional information on the statement of cash flows

€000	NOTE	2015	2014
Income taxes paid/(refunded) to/(by) the tax authorities		279,666	232,359
Income taxes refunded/(paid) by/(to) companies participating in tax consolidation		281,187	226,583
Interest and other financial income collected		628,189	568,481
Interest and other financial expenses paid		604,775	556,445
Dividends received	5.6	794,023	670,009
Foreign exchange gains collected		-	31
Foreign exchange losses incurred		-	35

Reconciliation of net cash and cash equivalents

€000	NOTE	2015	2014
Net cash and cash equivalents at beginning of year		465,322	706,017
Cash and cash equivalents	4.7	465,322	706,017
Net cash and cash equivalents at end of year		417,480	465,322
Cash and cash equivalents	4.7	417,480	465,322

NOTES

1. INTRODUCTION

Atlantia SpA (or the "Company") was formed in 2003. The Company's registered office is in Rome, at Via Nibby, 20. The Company does not have branch offices.

The duration of the Company is currently until 31 December 2050.

The Company, listed on the screen-based trading system (Mercato Telematico Azionario) operated by Borsa Italiana SpA, is a holding company with investments in companies whose business is the construction and operation of motorways, airports and transport infrastructure, parking areas and intermodal systems, or who engage in activities related to the management of motorway or airport traffic.

At the date of preparation of these consolidated financial statements Sintonia SpA is the shareholder that holds a relative majority of the issued capital of Atlantia SpA. Neither Sintonia SpA nor its direct parent, Edizione Srl, exercise management and coordination of Atlantia SpA.

These financial statements as at and for the year ended 31 December 2015 were approved by the Company's Board of Directors at its meeting of 4 March 2016.

Due to the fact that the Company has significant controlling interests in other companies, it also prepares Group consolidated financial statements that are presented together with the Company's separate financial statements.

2. BASIS OF PREPARATION

The financial statements as at and for the year ended 31 December 2015 have been prepared on a going concern basis. They have been prepared in compliance with articles 2 and 4 of Legislative Decree 38/2005 and in accordance with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board and endorsed by the European Commission. These standards reflect the interpretations issued by the International Financial Reporting Interpretations Committee (IFRIC), in addition to previous International Accounting Standards (IAS) and interpretations issued by the Standard Interpretations Committee (SIC) and still in force. For the sake of simplicity, all the above standards and interpretations are hereinafter referred to as "IFRS".

Moreover, the measures introduced by the CONSOB, in application of paragraph 3 of article 9 of Legislative Decree 38/2005, relating to the preparation of financial statements, have also been taken into account.

The financial statements consist of the statement of financial position, the income statement, the statement of comprehensive income, the statement of changes in equity, the statement of cash flows and these notes, in application of IAS 1 "Presentation of financial statements" and, in general, the historic cost convention, with the exception of those items that are required by IFRS to be recognised at fair value, as explained in the accounting policies for individual items described in note 3. The statement of financial position is based on the format that separately discloses current and non-current assets and liabilities. The income statement is classified by nature of expense, whilst the statement of cash flows has been prepared in application of the indirect method.

IFRS have been applied in accordance with the indications provided in the "Conceptual Framework for Financial Reporting", and no events have occurred that would require exemptions pursuant to paragraph 19 of IAS 1.

CONSOB Resolution 15519 of 27 July 2006 requires that, in addition to the specific requirements of IAS 1 and other IFRS, financial statements must, where material, include separate sub-items providing (i) disclosure of amounts deriving from related party transactions; and, with regard to the income statement, (ii) separate disclosure of income and expenses deriving from events and transactions that are non-recurring in nature, or transactions or events that do not occur on a frequent basis during the normal course of business. A number of non-recurring transactions occurred in 2015, as described in note 5.10. Otherwise, no atypical or unusual transactions, having a material impact on the Company's income statement and statement of financial position, were entered into during the period, either with third or related parties. The financial

statements therefore show the principal amounts relating to the related party and non-recurring transactions that took place during the reporting period.

Amounts in the income statement and statement of financial position are shown in euros, whilst amounts in the statement of comprehensive income, the statement of cash flows, the statement of changes in equity and these notes are shown in thousands of euros, unless otherwise indicated. With regard CONSOB Resolution 15519 of 27 July 2006 relating to the format for financial statements, a specific supplementary income statement and statement of financial position, showing material related party transactions, has been included.

The euro is both the Company's functional currency and its presentation currency. Each item in the financial statements is compared with the corresponding amount for the previous year.

3. ACCOUNTING STANDARDS AND POLICIES APPLIED

A description follows of the more important accounting standards and policies employed by the Company for its financial statements as at and for the year ended 31 December 2015. These accounting standards and policies are consistent with those applied in preparation of the financial statements for the previous year, as no new standards, interpretations, or amendments to existing standards became effective in 2015 having a material effect on the Company's financial statements.

It should be noted that the following new interpretations and/or amendments to existing standards and interpretations were applicable from 1 January 2015:

• a) Annual improvements to IFRSs: 2011-2013, relating specifically to:
  • 1) IFRS 3 Business Combinations. The amendment to the standard clarifies that a contingent consideration classified as an asset or a liability must be measured at fair value at each reporting date, with the effects to be recognised in profit or loss, regardless of whether the contingent consideration is a financial instrument or a non-financial asset or liability. In addition, it clarifies that the standard does not apply to all joint ventures;
  • 2) IFRS 13 Fair Value Measurement. The amendment clarifies and explicitly confirms the option of accounting for short-term trade receivables and payables on an undiscounted basis, should the effect of discounting not be material;
• b) IFRIC 21 Levies. The interpretation applies to all levies imposed by the government that do not fall within the scope of other standards (for example, IAS 12 – Income Taxes). The interpretation clarifies that an entity must only recognise a liability for a levy when the activity that triggers payment, as identified by the relevant legislation, occurs. In addition, a liability for a levy may only be accrued progressively if the activity that triggers payment occurs over a period of time. For a levy that is triggered upon reaching a minimum threshold, the liability must be estimated and recognised before the threshold is reached, when the threshold is expected to be exceeded in the assessment period.

Property, plant and equipment

Property, plant and equipment, including items acquired under finance leases, are stated at purchase cost. Cost includes expenditure that is directly attributable to the acquisition of the items and financial expenses incurred during construction of the asset. As permitted by IFRS 1, assets acquired through business combinations prior to 1 January 2004 are stated at previous amounts, as determined under Italian GAAP for those business combinations and representing deemed cost.

The cost of assets with finite useful lives is systematically depreciated on a straight-line basis applying rates that represent the expected useful life of the asset. Each component of an asset with a cost that is significant in relation to the total cost of the item, and that has a different useful life, is accounted for separately. Land, whether free of constructions or annexed to civil and industrial buildings, is not depreciated as it has an indefinite useful life.

Investment property, which is held to earn rentals or for capital appreciation, or both, is recognised at cost measured in the same manner as property, plant and equipment. The relevant fair value of such assets has also been disclosed.

The annual rates of depreciation applied to "Property, plant and equipment" and "Investment property" in 2015 are shown in the table below by asset class.

Property, plant and equipment	Rate of depreciation
Buildings	3%
Industrial and business equipment	20%
Other assets	12%

Property, plant and equipment is tested for impairment, as described in the relevant note, whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

Property, plant and equipment is derecognised on disposal. Any gains or losses (determined as the difference between disposal proceeds, less costs to sell, and the carrying amount of the asset) are recognised in profit or loss in the period in which the asset is sold.

Intangible assets

Intangible assets are identifiable assets without physical substance, controlled by the entity and from which future economic benefits are expected to flow, and purchased goodwill. Identifiable intangible assets are those purchased assets that, unlike goodwill, can be separately distinguished. This requirement is generally satisfied when the intangible asset: (i) arises from a legal or contractual right, or (ii) is separable, meaning that it may be sold, transferred, licensed or exchanged, either individually or as an integral part of other assets. The asset is controlled by the entity if the entity has the power to obtain future economic benefits from the asset and can limit access to it by others.

Internally developed assets are recognised as assets to the extent that: (i) the cost of the asset can be measured reliably; (ii) the entity has the intention, the available financial resources and the technical expertise to complete the asset and either use or sell it; (iii) the entity is able to demonstrate that the asset is capable of generating future economic benefits.

Intangible assets are recognised at cost, measured in the same manner as property, plant and equipment, provided that the assets can be identified and their cost reliably determined, are under the entity's control and are able to generate future economic benefits.

Amortisation of intangible assets with finite useful lives begins when the asset is ready for use and is based on remaining economic benefits to be obtained in relation to their residual useful lives. The annual rate of amortisation used in 2015 is 1.01%.

Intangible assets are tested for impairment, as described below in the note on "Impairment of assets and reversals (impairment testing)", whenever events or changes in circumstances indicate that the carrying amount may not be fully recoverable.

Gains and losses deriving from the disposal of an intangible asset are determined as the difference between the disposal proceeds, less costs to sell, and the carrying amount of the asset and are recognised as income or expense in the income statement at the time of the disposal.

Goodwill

Acquisitions of companies or business units are accounting for using the acquisition method, as required by IFRS 3. For this purpose, the identifiable assets acquired and liabilities assumed through business combinations are measured at their respective fair values at the acquisition date. The cost of an acquisition is measured as the fair value, at the date of exchange, of the assets acquired, liabilities assumed and any equity instruments issued by the Company in exchange for control.

Goodwill is initially measured as the positive difference between the acquisition cost, plus the fair value at the acquisition date of any previous non-controlling interests held in the acquiree, and the fair value of net assets acquired.

The goodwill, as measured on the date of acquisition, is allocated to each of the substantially independent cash generating units expected to benefit from the synergies of the business combination.

A negative difference between the cost of the acquisition and the fair value of the net assets acquired is recognised as income in profit or loss in the year of acquisition.

Goodwill on acquisitions of non-controlling interests is included in the carrying amount of the relevant investments.

After initial recognition, goodwill is no longer amortised and is carried at cost less any accumulated impairment losses, determined as described in the note on impairment testing.

IFRS 3 was not applied retrospectively to acquisitions prior to 1 January 2004, the Company's IFRS transition date, as noted above. As a result, the carrying amount of goodwill on these acquisitions is that determined under Italian GAAP, which is the net carrying amount at this date, subject to impairment testing and the recognition of any impairment losses.

Investments

Investments in subsidiaries, associates and joint ventures are accounted for at cost and include any directly attributable transaction costs. Impairment losses are identified in accordance with IAS 36, as described below in the note on "Impairment of assets and reversals (impairment testing)". The impairment is reversed in the event the circumstances giving rise to the impairment cease to exist; the reversal may not exceed the original carrying amount of the investment. Provisions are made to cover any losses of an associate or joint venture exceeding the carrying amount of the investment, to the extent that the shareholder is required to comply with actual or constructive obligations to cover such losses.

Investments in other companies, which qualify as available-for-sale financial instruments, as defined by IAS 39, are initially accounted for at cost at the settlement date, in that this represents fair value, including any directly attributable transaction costs. After initial recognition, these investments are measured at fair value, to the extent reliably determinable, through other comprehensive income and hence in a specific equity reserve. On realisation or recognition of an impairment loss in the income statement, the accumulated gains and losses in that reserve are taken to the income statement.

Impairment losses, identified as described below in the note on "Impairment of assets and reversals (impairment testing)", are reversed to other comprehensive income in the event the circumstances giving rise to the impairment cease to exist.

When fair value cannot be reliably determined, investments classified as available-for-sale financial instruments are measured at cost less any impairment losses. In this case impairment losses may not be reversed.

Investments held for sale, or those in the process of being sold, are accounted for in current assets at the lower of their carrying amount and fair value, less any costs to sell.

Acquisitions or disposals of companies and/or business units between companies belonging to the Atlantia Group (entities or businesses under common control) are treated, in accordance with IAS 1 and IAS 8, on the basis of their economic substance, with reference to both the (i) the method of determining the purchase consideration, and (ii) confirmation of the generation of added value for all the parties involved, resulting in significant measurable changes in the cash flows generated by the assets transferred before and after the transaction. In this regard:

• a) in the case of the disposal of an intra-group investment, if both requirements to be confirmed are met, the difference between the carrying amount of the investment transferred and the related purchase consideration is recognised in profit or loss. In the other cases, the difference is recognised directly in equity;
• b) in the case of acquisitions of intra-group investments, such investments are recognised at cost (as defined above) when the consideration is determined on the basis of the fair value of the investment being acquired; in the other cases, the investment is accounted for at the same amount at which it was accounted for in the financial statements of the transferee.

Receivables and payables

Receivables are initially recognised at fair value and subsequently measured at amortised cost, using the effective interest method, less any allowance for bad debts. The amount of the allowance is based on the present value of expected future cash flows. These cash flows take account of expected collection times, estimated realisable value, any guarantees received, and the expected costs of recovering amounts due. Impairment losses are reversed in future periods if the circumstances that resulted in the loss no longer exist. In this case, the reversal is accounted for in the income statement and may not in any event exceed the amortised cost of the receivable had no previous impairment losses been recognised.

Payables are initially recognised at cost, which corresponds to the fair value of the liability, less any directly attributable transaction costs. After initial recognition, payables are recognised at amortised cost, using the original effective interest method.

Trade receivables and payables, which are subject to normal commercial terms and conditions, are not discounted to present value.

Cash and cash equivalents

Cash and cash equivalents are recognised at face value. They include highly liquid demand deposits or very short-term instruments of excellent quality, which are subject to an insignificant risk of changes in value.

Derivative financial instruments

All derivative financial instruments are recognised at fair value at the end of the year.

As required by IAS 39, derivatives are designated as hedging instruments when the relationship between the derivative and the hedged item is formally documented and the periodically assessed effectiveness of the hedge is high and ranges between 80% and 125%.

Changes in the fair value of cash flow hedges hedging assets and liabilities (including those that are pending and highly likely to arise in the future) are recognised in the statement of comprehensive income. The gain or loss relating to the ineffective portion is recognised in profit or loss.

Changes in the fair value of derivatives serving as fair value hedges are recognised in profit or loss. Analogously, the hedged assets and liabilities are restated at fair value through profit or loss.

Changes in the fair value of derivative instruments that do not qualify for hedge accounting under IAS 39 are recognised in profit or loss.

Other financial assets and liabilities

Financial assets that the Company intends and is able to hold to maturity and other financial liabilities are recognised at the fair value of the purchase consideration at the settlement date, with assets being increased and liabilities being reduced by transaction costs directly attributable to the purchase of assets or issuance of financial liabilities. After initial recognition, financial assets are measured at amortised cost using the original effective interest method.

Financial assets and liabilities are derecognised when, following their sale or settlement, the Company is no longer involved in their management and has transferred all risks and rewards of ownership.

Financial assets held for trading are recognised and measured at fair value through profit or loss. Other categories of financial assets classified as available-for-sale financial instruments are recognised and measured at fair value through comprehensive income and, consequently, in a specific equity reserve. The financial instruments in these categories have, to date, never been reclassified.

Fair value measurement and fair value hierarchy

For all transactions or balances (financial or non-financial) for which an accounting standard requires or permits fair value measurement and which falls within the application of IFRS 13, the Company applies the following criteria:

• a) identification of the unit of account, defined as the level at which an asset or a liability is aggregated or disaggregated in an IFRS for recognition purposes;
• b) identification of the principal market or, in the absence of such a market, the most advantageous market in which the particular asset or liability to be measured could be traded; unless otherwise indicated, it is assumed that the market currently used coincides with the principal market or, in the absence of such a market, the most advantageous market;
• c) definition for non-financial assets of the highest and best use of the asset; unless otherwise indicated, highest and best use is the same as the asset's current use;
• d) definition of valuation techniques that are appropriate for the measurement of fair value, maximising the use of relevant observable inputs that market participants would use when determining the price of an asset or liability;
• e) determination of the fair value of assets, based on the price that would be received to sell an asset, and of liabilities and equity instruments, based on the price paid to transfer a liability in an orderly transaction between market participants at the measurement date;

f) inclusion of non-performance risk in the measurement of assets and liabilities and above all, in the case of financial instruments, determination of a valuation adjustment when measuring fair value to include, in addition to counterparty risk (CVA – credit valuation adjustment), the own credit risk (DVA - debit valuation adjustment).

Based on the inputs used for fair value measurement, as required by IFRS 13, a fair value hierarchy for classifying the assets and liabilities measured at fair value, or the fair value of which is disclosed in the financial statements, has been identified:

• a) level 1: includes quoted prices in active markets for identical assets or liabilities;
• b) level 2: includes inputs other than quoted prices included within level 1 that are observable, such as the following: i) quoted prices for similar assets or liabilities in active markets; ii) quoted prices for similar or identical assets or liabilities in markets that are not active; iii) other observable inputs (interest rate and yield curves, implied volatilities and credit spreads);
• c) level 3: unobservable inputs. These inputs are used to the extent that observable data is not available. The unobservable data used for fair value measurement should reflect the assumptions that market participants would use when pricing the asset or liability being measured.

Definitions of the fair value hierarchy level in which individual financial instruments measured at fair value have been classified, or for which the fair value is disclosed in the financial statements, are provided in the notes to individual components of the financial statements.

There are no assets or liabilities classifiable in level 3 of the fair value hierarchy.

No transfers between the various levels of the fair value hierarchy took place during the year.

The fair value of derivative financial instruments is based on expected cash flows that are discounted at rates derived from the market yield curve at the measurement date and the curve for listed credit default swaps entered into by the counterparty and the Company, to include the non-performance risk explicitly provided for by IFRS 13.

In the case of medium/long-term financial instruments, other than derivatives, where market prices are not available, the fair value is determined by discounting expected cash flows, using the market yield curve at the measurement date and taking into account counterparty risk in the case of financial assets and own credit risk in the case of financial liabilities.

Provisions

Provisions are made when: (i) the Company has a present (actual or constructive) obligation as a result of a past event; (ii) it is probable that an outflow of resources will be required to settle the obligation; and (iii) the related amount has been reliably estimated.

Provisions are measured on the basis of management's best estimate of the expenditure required to settle the present obligation at the end of the reporting period. If the discount to present value is material, provisions are determined by discounting future expected cash flows to their present value using a discount rate used that reflects current market assessments of the time value of money. Subsequent to the computation of present value, the increase in provisions over time is recognised as a financial expense.

Employee benefits

Short-term employee benefits, provided during the period of employment, are accounted for at the accrued liability at the end of the reporting period.

Liabilities deriving from other medium/long-term employee benefits are recognised in the vesting period, less any plan assets and advance payments made. They are determined on the basis of actuarial assumptions, if material, and recognised on an accruals basis in line with the period of service necessary to obtain the benefit. Post-employment benefits in the form of defined contribution plans are recognised at the amount accrued at the end of the reporting period.

Post-employment benefits in the form of defined benefit plans are recognised in the vesting period, less any plan assets and advance payments made. Such defined benefit plans primarily regard the obligation as determined on the basis of actuarial assumptions and recognised on an accruals basis in line with the period of

service necessary to obtain the benefit. The obligation is calculated by independent actuaries. Any resulting actuarial gain or loss is recognised in full in other comprehensive income in the period to which it relates.

Non-current assets held for sale, assets and liabilities included in disposal groups and/or related to discontinued operations

Where the carrying amount of non-current assets held for sale, or of assets and liabilities included in disposal groups and/or related to discontinued operations is to be recovered primarily through sale rather than through continued use, these items are presented separately in the statement of financial position.

Immediately prior to being classified as held for sale, the above assets and liabilities are recognised under the specific IFRS applicable to each asset and liability, and subsequently accounted for at the lower of the carrying amount and estimated fair value. Any impairment losses are recognised immediately in the income statement. Disposal groups or discontinuing operations are recognised in profit or loss as discontinued operations provided the following conditions are met:

• a) they represent a major line of business or geographical area of operation;
• b) they are part of a single coordinated plan to dispose of a separate major line of business or geographical area of operation;
• c) they are subsidiaries acquired exclusively with a view to resale.

After tax gains and losses resulting from the management or sale of such operations are recognised as one amount in profit or loss with comparatives.

Revenue

Revenue is recognised when the fair value can be reliably measured and it is probable that the economic benefits associated with the transactions will flow to the Company. Depending on the type of transaction, revenue is recognised on the basis of the following specific criteria:

• a) to the extent, for sales of goods, that significant risks and rewards of ownership are transferred to the buyer;
• b) the provision of services is prorated to percentage of completion of work. When the amount of the revenue cannot be reliably determined, revenue is recognised only to the extent that expenses are considered to be recoverable;
• c) rental income or royalties, on an accruals basis, based on the agreed terms and conditions of the contract;
• d) interest income (and interest expense) is accrued with reference to amount of the financial asset or liability, in accordance with the effective interest method;
• e) dividend income is recognised when the right to receive payment is established.

Income taxes

Income taxes are recognised on the basis of a realistic estimate of tax expense to be paid, in compliance with the regulations in force.

Deferred tax assets and liabilities are determined on the basis of temporary differences between the carrying amounts of assets and liabilities as in the Company's books (resulting from application of the accounting policies described in note 3) and the corresponding tax bases (resulting from application of the tax regulations in force in the country relevant to each subsidiary), as follows:

• a) deferred tax assets are only recognised to the extent that it is probable that future taxable profit will be available against which the asset can be utilised;
• b) deferred tax liabilities are always recognised.

Atlantia operates a tax consolidation arrangement, on the basis of Legislative Decree 344/2003.

The current tax assets and liabilities for IRES of the companies included in the consolidation are reported as current tax assets and liabilities, with recognition of a matching receivable or payable due from or to the subsidiary, in connection with the transfer of funds to be carried out as a result of the tax consolidation.

Relations between the companies are regulated by a specific contract. This contract establishes that participation in the tax consolidation arrangement may not, under any circumstances, result in economic or financial disadvantages for the participating companies compared with the situation that would have arisen had they not participated in the arrangement. Should such disadvantages arise, they are to be offset by a corresponding indemnity to be paid to the participating companies concerned.

Share-based payment

The cost of services provided by directors and/or employees remunerated through share-based incentive plans, and settled through the award of financial instruments, is based on the fair value of the rights at the grant date. Fair value is computed using actuarial assumptions and with reference to all characteristics, at the grant date (vesting period, any consideration due and conditions of exercise, etc.), of the rights and the plan's underlying securities. The obligation is determined by independent actuaries. The cost of these plans is recognised in profit or loss, with a contra-entry in equity, over the vesting period, based on a best estimate of the number of options that will vest.

The cost of any services provided by Directors and/or employees and remunerated through share-based payments, but settled in cash, is instead measured at the fair value of the liability assumed and recognised in profit or loss, with a contra entry in liabilities, over the vesting period, based on a best estimate of the number of options that will vest. Fair value is remeasured at the end of each reporting period until such time as the liability is settled, with any changes recognised in profit or loss.

Impairment of assets and reversals (impairment testing)

At the end of the reporting period, the Company tests property, plant and equipment, intangible assets, financial assets and investments for impairment.

If there are indications that these assets have been impaired, the recoverable amounts of such assets are estimated in order to verify and eventually measure the amount of the impairment loss. Irrespective of whether there is an indication of impairment, intangible assets with indefinite lives and those which are not yet available for use are tested for impairment at least annually, or more frequently, if an event has occurred or there has been a change in circumstances that could cause an impairment.

If it is not possible to estimate the recoverable amounts of individual assets, the recoverable amount of the cash-generating unit to which a particular asset belongs is estimated.

This entails estimating the recoverable amount of the asset (represented by the higher of the asset's fair value less costs to sell and its value in use) and comparing it with the carrying amount. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount is reduced to its recoverable amount. In calculating value in use, expected future pre-tax cash flow is discounted using a pre-tax rate that reflects current market assessments of the cost of capital which embodies the time value of money and the risks specific to the business.

In contrast, in estimating the future cash flow of a CGU, the Company uses after-tax cash flows and discount rates that produce results that are substantially equivalent to those resulting from a pre-tax computation. Impairments are recognised in profit or loss in a variety of classifications depending on the nature of the impaired asset. Losses are reversed if the circumstances that resulted in the loss no longer exist, provided that the reversal does not exceed the cumulative impairment losses previously recognised, unless the impairment loss relates to goodwill and investments measured at cost, where the related fair value cannot be reliably determined.

Estimates and judgements

Preparation of financial statements in compliance with IFRS involves the use of estimates and judgements, which are reflected in the measurement of the carrying amounts of assets and liabilities and in the disclosures provided in the notes to the financial statements, including contingent assets and liabilities at the end of the reporting period. These estimates are primarily used in determining amortisation and depreciation, impairment testing of assets (including the measurement of receivables), provisions, employee benefits, the fair value of financial assets and liabilities, and current and deferred tax assets and liabilities.

The amounts subsequently recognised may, therefore, differ from these estimates. Moreover, these estimates and judgements are periodically reviewed and updated, and the resulting effects of each change immediately recognised in the financial statements.

Translation of foreign currency items

Transactions in currencies other than the functional currency are recognised by application of the exchange rate at the transaction date. Assets and liabilities denominated in currencies other than the functional currency are, subsequently, remeasured by application of the exchange rate at the end of the reporting period. Any

exchange differences on remeasurement are recognised in the income statement. Non-monetary assets and liabilities denominated in foreign currencies and recognised at historical cost are translated using the exchange rate at the date of initial recognition.

Earnings per share

Basic earnings per share is computed by dividing profit by the weighted average number of shares outstanding during the accounting period.

Diluted earnings per share is computed by dividing profit attributable to owners of the parent by the above weighted average, also taking into account the effects deriving from the subscription, exercise or conversion of all potential shares that may be issued as a result of the exercise of any outstanding rights.

New accounting standards and interpretations, or revisions and amendments of existing standards, that have either yet to come into effect

As required by IAS 8 "Accounting Policies, Changes in Accounting Estimates and Errors", this section describes new accounting standards and interpretations, and amendments of existing standards and interpretations that are already applicable, but that have either yet to come into effect in 2015, and that may in the future be applied in the Company's financial statements:

Name of document	Effective date of IASB document	Date of EU endorsement
New accounting standards and interpretations
IFRS 9 – Financial Instruments	1 January 2018	Not endorsed
IFRS 15 – Revenue from Contracts with Customeri	1 January 2018	Not endorsed
Amendments to existing standards and interpretations
Amendments to IAS 1 – Disclosure Initiative	1 January 2016	December 2015
Amendments to IAS 16 and IAS 38 – Clarification of Acceptable Methods of Depreciation and
Amortisation	1 January 2016	December 2015
Amendments to IFRS 11 – Accounting for Acquisitions of Interests in Joint Operation	1 January 2016	November 2015
Annual Improvements to IFRSs: 2010–2012	1 February 2015	December 2014
Annual Improvements to IFRSs: 2012–2014	1 January 2016	December 2015

IFRS 9 – Financial instruments

In July 2014, the IASB published the final version of IFRS 9, the standard created to replace the existing IAS 39 for the classification and measurement of financial instruments.

The standard introduces new rules for the classification and measurement of financial instruments, a new impairment model for financial assets and a new hedge accounting model.

Classification and measurement

IFRS 9 envisages a single approach for the assessment and classification of all financial assets, including those containing embedded derivatives. The classification and related measurement is driven by both the business model in which the financial asset is held and the contractual cash flow characteristics of the asset.

The financial asset is measured at amortised cost subject to both of the following conditions:

• a) the asset is held in conjunction with a business model whose objective is to hold assets in order to collect contractual cash flows; and
• b) the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

The financial asset is measured at fair value, with any changes recognised in comprehensive income, if the objectives of the business model are to hold the financial asset to collect the contractual cash flows, or to sell it.

Finally, the standard envisages a residual category of financial asset measured at fair value through profit or loss, which includes assets held for trading.

A financial asset meeting the conditions to be classified and measured at amortised cost may, on initial recognition, be designated as a financial asset at fair value through profit or loss, to the extent that this accounting treatment would eliminate or significantly reduce a measurement or recognition inconsistency (sometimes referred to as an 'accounting mismatch') that would otherwise arise from measuring assets or liabilities or recognising the gains and losses on them on different bases.

In addition, the new standard provides that an entity may, with respect to investments in equity instruments, which consequently may not be carried and measured at amortised cost unless such instruments are shares that are not held for trading but rather for strategic reasons, make an irrevocable election on initial recognition to present changes in the fair value in comprehensive income.

The new IFRS 9, on the other hand, has confirmed the provisions of IAS 39 for financial liabilities including the relative measurement at amortised cost or, in specific circumstances, at fair value through profit or loss.

The requirements of IAS 39 that have been changed are primarily:

• a) the reporting of changes in fair value in connection with the credit risk of certain liabilities, which IFRS 9 requires to be recognised in comprehensive income rather than in profit or loss as movements in fair value as a result of other risks;
• b) the elimination of the option to measure, at amortised cost, financial liabilities consisting of derivative financial instruments entailing the delivery of unlisted equity instruments. The consequence of the change is that all derivative financial instruments must now be recognised at fair value.

Impairment

IFRS 9 has defined a new impairment model for financial assets, with the objective of providing the users of financial statements with more useful information about an entity's expected losses. The model requires an entity to recognise expected credit losses at all times and to update the amount of expected losses recognised at each reporting date to reflect changes in the credit risk of the financial instruments. It is, therefore, no longer necessary to wait for evidence of a trigger event before testing for impairment and recognition of a credit loss. All financial instruments must be tested for impairment, with the exception of those measured at fair value through profit or loss.

Hedge accounting

The most important changes introduced by IFRS 9 regard:

• a) the extended scope of the risks eligible for hedge accounting, to include those to which non-financial assets and liabilities are exposed, also permitting the designation of groups and net positions as hedged items, also including any derivatives;
• b) the option of designating a financial instrument at fair value through profit or loss as a hedging instrument;
• c) the alternative method of accounting for forwards and options, when included in a hedge accounting relationship;
• d) changes to the method of conducting hedge effectiveness tests, following introduction of the principle of the "economic relationship" between the hedged item and the hedging instrument; in addition, retrospective hedge effectiveness testing is no longer required;
• e) the possibility of "rebalancing" an existing hedge where the risk management objectives continue to be valid.

IFRS 15 – Revenue from Contracts with Customers

On 28 May the IASB published the new standard, IFRS 15. IFRS 15 replaces the previous IAS 18, in addition to IAS 11, regarding contract work, and the related interpretations, IFRIC 13, IFRIC 15, IFRIC 18 and SIC 31. IFRS 15 establishes the standards to follow in recognising revenue from contracts with customers, with the exception of contracts falling within the scope of application of standards governing leases, insurance contracts and financial instruments.

The new standard provides an overall framework for identifying the timing and amount of revenue to be recognised in the financial statements. Based on the new standard, the amount recognised as revenue by an entity must reflect the consideration to which the entity is entitled in exchange for goods transferred to the customer and/or services rendered. This revenue is to be recognised when the entity has satisfied its performance obligations under the contract.

In addition, in recognising revenue, the standard stresses the need to assess the likelihood of obtaining/collecting the economic benefits linked to the proceeds. In the case of contract work in progress,

currently governed by IAS 11, the new standard introduces the requirement to recognise revenue taking into account the effect of discounting to present value resulting from the deferral of collections over time. If it is not possible to retrospectively apply the new standard, a modified approach can be used upon first-time adoption. Under this approach, the effects of application of the new standard must be recognised in opening equity at the beginning of the reporting period of first-time adoption.

Amendments to IAS 1 – Disclosure initiative

In December 2014, the IASB published a number of amendments to IFRS 1, in order to clarify the disclosures to be included in the notes to financial statements.

A number of changes have been made to the disclosures to be provided regarding:

• a) the concept of materiality, relating to the relevance of the information to be provided in financial statements;
• b) the items to be presented in the financial statements;
• c) the structure of the notes;
• d) the accounting policies;
• e) the basis of presentation in the statement of comprehensive income of profits and losses attributable to investments accounted for using the equity method.

Given that the amendments regard the classification of items in the financial statements and the disclosures to be included in the notes, they will not have any impact on amounts in the Company's financial statements.

Amendments to IAS 16 and IAS 38 – Clarification of Acceptable Methods of Depreciation and

Amortisation

In May 2014, the IASB published a number of amendments to IAS 16 – Property, Plant and Equipment, and IAS 38 – Intangible Assets.

The amendments provide clarification regarding acceptable methods of depreciation and amortisation under the above standards. Above all, whilst reiterating that the method of depreciation or amortisation used must reflect the expected pattern of consumption of the future economic benefits embodied in the asset, the amendments introduce the presumption that a revenue-based method of depreciation or amortisation is not appropriate. This is because the IASB believes that revenue generated by an asset reflects factors not directly linked to consumption of the economic benefits embodied in the asset.

In the case of intangible assets, the IASB has also specified that in choosing which method of amortisation to use, the entity must take into account the predominant, limiting factors inherent in the intangible asset, and that the above presumption may only be overcome in limited circumstances, when, for example, (i) the intangible asset is expressed as a measure of revenue that can be obtained from the asset, or (ii) when it can be demonstrated that revenue and the consumption of economic benefits of the intangible asset are highly correlated.

Amendments to IAS 27 – Equity Method in Separate Financial Statements

On 12 August 2014, the IASB published amendments to IAS 27 – Separate Financial Statements, which required an entity to disclose its investments in subsidiaries, associates and joint ventures at cost or, in accordance with IFRS 9 (or IAS 39, for entities who have yet to adopt IFRS 9), at fair value. The amendments introduce, alongside the methods of measurement already permitted in the separate financial statements, the option of measuring such investments using the equity method.

Amendments to IFRS 11 – Accounting for Acquisitions of Interests in Joint Operations

On 6 May 2014, the IASB published a number of amendments to IFRS 11 – Joint Arrangements. The aim of the amendments is to clarify the accounting, by investors, of the acquisition of an interest in a joint operation that constitutes or contains a business.

Annual Improvements to IFRSs: 2010 – 2012

The IASB published "Annual Improvements to IFRSs: 2010-2012 Cycle" on 12 December 2013. The principal amendments that could be relevant to the Company are:

• a) IFRS 2 Share-based Payment: amendments have been made to the definitions of "vesting condition" and "market condition" and further definitions for "performance condition" and "service condition" have been added, for the recognition of share-based benefit plans;
• b) IFRS 8 Operating Segments: the amendments require disclosure of the judgements made by management in applying the aggregation criteria for operating segments, including a description of the aggregate operating segments and the economic indicators assessed in determining if the operating segments have "similar economic characteristics". In addition, the reconciliation of the total of the reportable segment's assets to the entity's total assets should only be disclosed if the total of the reportable segment's assets is regularly provided to the chief operating decision maker.

Annual Improvements to IFRS: 2012 – 2014

The IASB published "Annual Improvements to IFRSs: 2012-2014 Cycle" on 25 September 2014. The principal amendments that could be relevant to the Company are:

• a) IFRS 7 Financial Instruments: Disclosures: the amendments eliminate uncertainty regarding when disclosures regarding the offsetting of financial assets and liabilities (that came into effect from accounting periods beginning on or after 1 January 2013) must be included in interim financial statements; the document clarifies that fact that offsetting disclosures are not explicitly required for all interim financial statements. However, such disclosures may be necessary in order to meet the requirements of IAS 34, if the disclosure is material;
• b) IAS 19 Employee Benefits: the document clarifies that the high-quality corporate bonds used in estimating the discount rate for post-employment benefits should be denominated in the same currency as the benefits to be paid. The changes also establish that the depth of the market for such bonds should be assessed at currency level;
• c) IAS 34 Interim Financial Statements: changes have been introduced to clarify the requirements when the required disclosures are presented in the interim financial report, but not in the interim financial statements. Such disclosures may be included by including a reference in the interim financial statements to elsewhere in the interim financial report, provided that the latter document is available to readers of the interim financial statements in the same way and at the same time as the interim financial statements.

The effect of the future application of newly issued standards and interpretations, as well as all revisions and amendments to existing standards, with the exception of those regarding IAS 1, is currently being evaluated by the Company. The impact cannot currently be reasonably estimated.

4 NOTES TO THE STATEMENT OF FINANCIAL POSITION

The following notes provide information on items in the statement of financial position as at 31 December 2015. Comparative amounts as at 31 December 2014 are shown in brackets. Details of items in the consolidated statement of financial position deriving from related party transactions are provided in note 7.2.

4.1 Property, plant and equipment €7,540 thousand (€7,992 thousand)

The following table provides details of property, plant and equipment at the beginning and end of the period, showing the original cost and accumulated depreciation at the end of the period.

€000		31 December 2015		31 December 2014
	Cost	Accumulated depreciation	Carrying amount	Cost	Accumulated depreciation	Carrying amount
Property, plant and equipment	5,763	-3,737	2,026	5,756	-3,549	2,207
Investment property	10,438	-4,924	5,514	10,430	-4,645	5,785
Total property, plant and equipment	16,201	-8,661	7,540	16,186	-8,194	7,992

The reduction of €452 thousand in the carrying amount of property, plant and equipment as at 31 December in 2015 essentially reflects depreciation for the year (€467 thousand), as shown in the following table.

€000	Carrying amount as at 31 December 2014	Additions	Depreciation	Reclassifications and other adjustments	Carrying amount as at 31 December 2015
Property, plant and equipment
Land	3 9	-	-	-	3 9
Buildings	2,048	3	-164	-8	1,879
Industrial and business equipment	8 8	-	-14	-	7 4
Other assets	3 2	1 2	-10	-	3 4
Total	2,207	1 5	-188	- 8	2,026
Investment property
Land	1,124	-	-	-	1,124
Buildings	4,661	-	-279	8	4,390
Total	5,785	-	-279	8	5,514
Total property, plant and equipment	7,992	1 5	-467	-	7,540

This item consists of :

• a) property, plant and equipment, including owned buildings and land used in operations;
• b) investment property, which includes buildings and land owned by the Company, together with the surrounding land, and leased to other Group companies. The total fair value of these assets is estimated to be €12,460 thousand, based on independent appraisals and information on property markets relevant to these types of investment property. This amount is higher than the related carrying amount. Investment property generated rental income of €724 thousand in 2015, whilst direct maintenance and management costs totalled €135 thousand.

There were no changes in the expected useful lives of these assets during 2015. Property, plant and equipment as at 31 December 2015 is free of mortgages, liens or other collateral guarantees restricting use.

4.2 Intangible assets €225 thousand (€228 thousand)

The following table provides details of intangible assets at the beginning and end of the period, showing the original cost and accumulated amortisation at the end of the period.

€000	Carrying amount as at 31 December 2014	Amortisation	Carrying amount as at 31 December 2015
Building rights	228	-3	225
Intangible assets	228	- 3	225

Intangible assets, whose carrying amount is in line with the figure for 31 December 2014, consist solely of building rights for land owned by the Municipality of Florence, which are amortised over the term of the rights.

4.3 Investments €8,836,432 thousand (€8,857,912 thousand)

This item is down €21,480 thousand compared with 31 December 2014, primarily due to the following:

• a) the write-off of the investment in Compagnia Aerea Italiana, totalling €36,249 thousand, as described below, including capital injections of €9,026 thousand and €27,223 thousand by the Company in 2015 and 2014. These injections of fresh capital were carried out in implementation of the equity commitments approved by the extraordinary general meeting of shareholders held on 25 July 2014, in view of Etihad's purchase of an interest in the new airline, "Alitalia – Società Aerea Italiana", controlled by Compagnia Aerea Italiana. The remaining commitment as at 31 December 2015 amounts to €13,618 thousand;
• b) recognition of the accrued amount for share-based incentive plans, totalling €5,566 thousand, reflecting the benefits granted to certain directors and personnel of subsidiaries. Further details are provided in note 7.3.

The following tables show:

• a) amounts at the beginning and end of the period (showing the original cost and any accumulated revaluations and impairments) for the investment held by the Company, classified by category, and the related changes during the year;
• b) details of investments, showing, as well as other information, percentage interest and the relevant carrying amount as at 31 December 2015 (net of any unpaid, called-up issued capital).

						CHANGES DURING THE YEAR
€000		31 December 2014			Cost			Impairments		31 December 2015
	Cost	Accumulated (impairments)	Carrying amount	purchases of acquisitions additional shares New and	Changes due to corporate actions	translation differences Currency	Increases due payment to share based plans	(Increases)/ Decreases	Cost	Accumulated (impairments)	Carrying amount
Autostrade per l'Italia SpA	5,965,064	-	5,965,064	-	-	-	4,839	-	5,969,903	-	5,969,903
Aeroporti di Roma SpA	2,766,235	-	2,766,235	197	-	-	601	-	2,767,033	-	2,767,033
Spea Engineering SpA (1)	24,420	-	24,420	-	18,445	-	6 7	-	42,932	-	42,932
Pavimental SpA	29,047	-	29,047	-		-	5 9	-	29,106	-	29,106
Fiumicino Energia Srl	7,673	-	7,673	-	-	-	-	-	7,673	-	7,673
Mizard Srl	2 1	-	2 1	-	-	-	-	-	2 1	-	2 1
Domino Srl	1 1	-	1 1	2	-	-	-	-	1 3	-	1 3
ADR Engineering SpA (1)	18,445	-	18,445	-	-18,445	-	-	-		- -	-
Gemina Fiduciary Service SpA (2)	-	-	-	-	-	-	-	-		- -	-
Investments in subsidiaries (A)	8,810,916	-	8,810,916	199	-	-	5,566	-	8,816,681	-	8,816,681
Pune Solapur Expressways Private Ltd	16,364	-	16,364	-	-	-22	-	-	16,342	-	16,342
Investments in joint ventures (B)	16,364	-	16,364	-	-	-22	-	-	16,342	-	16,342
Firenze Parcheggi SpA	2,582	-	2,582	-	-	-	-	-	2,582	-	2,582
Emittente Titoli SpA	827	-	827	-	-	-	-	-	827	-	827
Compagnia Aerea Italiana SpA (3)	153,223	-126,000	27,223	9,026	-	-	-	-36,249	162,249	-162,249	-
Investments in other companies (C)	156,632	-126,000	30,632	9,026	-	-	-	-36,249	165,658	-162,249	3,409
Total investments (A+B+C)
	8,983,912	-126,000	8,857,912	9,225	-	-22	5,566	-36,249	8,998,681	-162,249	8,836,432

(1) With effect from 1 June 2015, ADR Engineering SpA was merged with and into Spea Ingegneria Europea SpA, which changed its name to Spea Engineering SpA.

(2) This investment, accounted for as a result of the merger of Gemina SpA with and into Atlantia, has a carrying amount of 1 euro cent.

(3) Compagnia Aerea Italiana assumed its new name from 1 January 2015.

Annual Report 2015 260

Name	Registered office	shares/units Number of		Par value	Consortium fund Capital/	Interest (%)	shares/units Number of held	Profit/(Loss) (€000) (1) 2015 for	31 December Equity as at (€000) (1) 2015	Carrying amount (€000)
Autostrade per l'Italia SpA	Rome	622,027,000	euro	euro 1.00	622,027,000	100.00%	622,027,000	954,953	2,565,608	5,969,903
Aeroporti di Roma SpA	Fiumicino	62,224,743	euro	euro 1.00	62,224,743	95.92%	59,687,641	134,556	1,128,704	2,767,033
Spea Engineering SpA (4)	Milan	1,350,000	euro	euro 5.16	6,966,000	60.00%	810,000	16,408	87,370	42,932
Pavimental SpA	Rome	77,818,865	euro	euro 0.13	10,116,452	59.40%	46,223,290	7,764	49,295	29,106
Fiumicino Energia Srl	Fiumicino	741,795	euro	euro 1.00	741,795	87.14%	646,387	1,226	9,343	7,673
Mizard Srl	Rome	1	euro	euro 10,000.00	10,000	100.00%	1	-1	1 4	2 1
Domino Srl	Fiumicino	1	euro	euro -	10,000	100.00%	1	-1	9	1 3
Gemina Fiduciary Services SA	Luxembourg	17,647	euro	euro -	150,000	99.99%	17,647	-35	-79	-
Investments in subsidiaries (A)										8,816,681
Pune Solapur Expressways Private Ltd.	New Delhi (India)	10,000,000	rupia	rupia 10.00	100,000,000	50.00%	5,000,000	-10,397 (3)	13,664 (3)	16,342
Investments in joint ventures (B)										16,342
Firenze Parcheggi SpA	Florence	495,550	euro	euro 51.65	25,595,158	5.47%	27,120	116 (2)	33,496 (2)	2,582
Emittente Titoli SpA	Milan	8,200,000	euro	euro 0.52	4,264,000	7.24%	594,000	10,104 (2)	15,997 (2)	827
Compagnia Aerea Italiana SpA (5)	Fiumicino	58,385,829,319	euro	euro -	359,026,536	7.02%	4,097,327,772	-698,834 (2)	25,990 (2)	-
Investments in other companies (C)										3,409
Investments (A+B+C)										8,836,432

(1) The figures have been taken from the latest financial statements approved by the boards of directors of each company.

(2) Latest financial statements approved (31 December 2014).

(3) The figures have been talen from the reporting package prepared by the company for the purposes of preparation of the Atlantia Group's consolidated financial statements. (4) With effect from 1 June 2015, ADR Engineering SpA was merged with and into Spea Ingegneria Europea SpA, which changed its name to Spea Engineering SpA.

(5) Compagnia Aerea Italiana assumed its new name from 1 January 2015.

Impairment tests have been conducted on the carrying amounts of investments as at 31 December 2015:

• a) that included goodwill (in this case, IAS 36 requires an impairment test to be conducted at least once a year), or
• b) for which there is evidence of a potential impairment.

As regards point a), the carrying amount of the investment in Autostrade per l'Italia has been tested for impairment, given that the carrying amount includes goodwill resulting from the Group's reorganisation in 2003. For this purpose, value in use was determined by using the company's long-term business plan, prepared on the basis of the regulatory mechanisms included in the Single Concession Arrangement, containing projections for traffic, investment, costs and revenues through to the end of the related concession term. Use of the long-term plan covering the entirety of the company's concession term is deemed more appropriate than the approach provisionally suggested by IAS 36 (namely, a limited explicit projection period and the estimated terminal value), given the intrinsic nature of the motorway concession arrangement, above all with regard to the regulations governing the sector and the predetermined duration of the arrangement. In particular, Autostrade per l'Italia's long-term plan used for the test has been prepared on the basis of the following assumptions:

• a) a CAGR for traffic of 1.00%;
• b) an average annual toll increase, linked to inflation, of 0.97%, which is 70% lower than the target inflation rate (2.00%) for the medium term indicated in the update to the Italian government's Economic and Finance Document for 2015;
• c) an average annual increase in the return on investment to be carried out of 1.15%. In this regard, a portion of this toll increase is not recognised if the planned investment is not carried out; in this case, the other economic and financial effects of not carrying out such investment would, instead, be taken into account.

As regards point b), the investments in Spea Engineering and Pavimental were tested for impairment. In terms of the method used in carrying out the impairment tests for these two companies, which essentially provide support services to the Atlantia Group's operators (with regard to their construction and maintenance activities), it was also considered appropriate to estimate value in use on the basis of the same period covered by the long-term plans of the operators to which they provide their services or until 2044, without estimating the terminal value.

The projected after-tax cash flows for the long-term plans of the subsidiaries indicated in points a) and b) were discounted to present value using the rate of 6.14% (6.25% in 2014), representing the companies' specific after-tax WACC.

The impairment tests confirmed that the carrying amounts of the investments accounted for as at 31 December 2015 are fully recoverable.

In addition to the above impairment test, sensitivity analyses were conducted on the recoverable values, increasing the above discount rates by 1%, and, in Autostrade per l'Italia's case, reducing the average annual rate of traffic growth by 1%. The results of these analyses have not, in any event, resulted in any material differences with respect to the outcomes of the above tests.

Finally, with regard to the investment in Compagnia Aerea Italiana, given the lack of sufficient information on which to base a reliable fair value measurement and in view of the significant losses incurred by this investee, reference was made to the Company's share of the investee's assets and liabilities measured in accordance with IFRS. This resulted in the write-off of the carrying amount of the investment (€36,249 thousand).

4.4 Financial assets
(non-current) €7,078,407 thousand (€9,003,591 thousand)
(current) €1,109,271 thousand (€267,637 thousand)

The following analysis shows the composition of financial assets at the beginning and end of the period, together with the current and non-current portions.

€000			31 December 2015			31 December 2014
		Total financial assets	Current portion	Non-current portion	Total financial assets	Current portion	Non-current portion
Loans to subsidiaries (1) (2)		7,397,335	882,732	6,514,603	8,757,890	-	8,757,890
Bonds held (1) (2)		346,262	-	346,262	-	-	-
Derivative assets (3)		216,686	-	216,686	245,232	-	245,232
Accrued income of medium/long-term financial assets (1)		219,464	219,464	-	259,391	259,391	-
Other loans and receivables (1)		984	128	856	548	7 9	469
Medium/long-term financial assets		8,180,731	1,102,324	7,078,407	9,263,061	259,470	9,003,591
Other financial assets (1)		6,947	6,947	-	8,167	8,167	-
Other current financial assets		6,947	6,947	-	8,167	8,167	-
Financial assets	Total	8,187,678	1,109,271	7,078,407	9,271,228	267,637	9,003,591
(1) These assets are classified as "loans and receivables" in accordance with IAS 39.
(2) As at 3 1 December 2015, these assets are hedged against interest rate and currency risk with notional amounts and maturities matching those of the underlyings.
These are classified as cash flow hedges in accordance with IAS 39 and included in "Derivative assets".

(3) These assets are classified as hedging derivatives and in level 2 of the fair value hierarchy.

Medium/long-term financial assets, totalling €8,180,731 thousand, are down €1,082,330 thousand. This primarily reflects a combination of the following:

• a) partial early repayment, totalling €1,351,250 thousand, of loans granted to Autostrade per l'Italia, maturing in 2016, 2017, 2019 and 2020, corresponding with the Company's early redemption of bonds in issue;
• b) a reduction of €39,927 thousand in accrued income, primarily due to the above early repayment of loans to Autostrade per l'Italia;
• c) a reduction of €29,109 thousand in fair value gains on derivative assets entered into with Autostrade per l'Italia to hedge interest rate risk associated with the medium/long-term, floating rate loan (disbursed in 2004 and maturing in 2022) of €750,000 thousand granted to the subsidiary, essentially reflecting the payment of differentials for 2015 and an increase in the interest rates used for measurement purposes as at 31 December 2015, compared with those used as at 31 December 2014;
• d) the recognition of the amount receivable as a result of the investment of available liquidity in the buyback of notes issued by Romulus Finance. In January 2015, Atlantia launched a voluntary cash tender offer for all the asset backed securities named "£215,000,000 5.441% per cent Class A4 Notes due 2023" issued by Romulus Finance (a special purpose vehicle controlled by Aeroporti di Roma). At the end of the offer period, acceptances had been received for 99.87% of the total securities in issue, resulting in an cash outflow of £259,817 thousand, including payment of a premium to Romulus Finance's noteholders, totalling £45.092 thousand. The Company entered into Cross Currency Swaps to hedge the currency risk associated with the investment. Fair value gains as at 31 December 2015 amount to €563 thousand. As at 31 December 2015, exchange rate movements have generated an increase in the receivable and a matching reduction in the derivatives, totalling €5,879 thousand.

Further information on the early redemption of bonds described in point a) is provided in note 5.10, whilst details of the hedging strategy and of the derivatives entered into to hedge certain financial assets (indicated in the above table) are provided in note 6.2.

Other current financial assets, essentially relating to short-term receivables in the form of guaranteed given to certain subsidiaries, are down €1,220 thousand compared with 31 December 2014, primarily due to a combination of the repayment received from the subsidiary, Autostrade per l'Italia (€2,779 thousand) and an increase in amounts due from the indirect subsidiary, Electronic Transaction Consultants (€1,438 thousand).

The loans granted to Autostrade per l'Italia are on the same terms as those applied to the Company's borrowings, increased by a spread that takes account of the cost of managing the loans.

The following two tables include details of financial assets, showing:

a) the composition of the carrying amount and the related face value and maturity (current and noncurrent), indicating loans to subsidiaries:

263

€000	Maturity			31 December 2015					31 December 2014
				of which		Term				of which
		Face value	Carrying amount	Current portion	Non-current portion	between 13 and 60	after 60 months	Face value	Carrying amount	Current portion	Non-current portion
Autostrade per l'Italia loan issued 2004	2024	1,000,000	1,000,000	-	1,000,000	- months	1,000,000	1,000,000	1,000,000	-	1,000,000
Autostrade per l'Italia loan issued 2009	2016	880,472	882,732	882,732	-	-	-	1,500,000	1,515,178	-	1,515,178
Autostrade per l'Italia loan issued 2009	2038	149,176	149,176	-	149,176	-	149,176	149,176	149,176	-	149,176
Autostrade per l'Italia loan issued 2010	2017	597,360	597,360	-	597,360	597,360	-	1,000,000	1,000,000	-	1,000,000
Autostrade per l'Italia loan issued 2010	2025	500,000	500,000	-	500,000	-	500,000	500,000	500,000	-	500,000
Autostrade per l'Italia loan issued 2012	2019	764,028	764,028	-	764,028	764,028	-	1,000,000	1,000,000	-	1,000,000
Autostrade per l'Italia loan issued 2012	2020	656,890	656,890	-	656,890	656,890	-	750,000	750,000	-	750,000
Autostrade per l'Italia loan issued 2012	2032	35,000	35,000	-	35,000	-	35,000	35,000	35,000	-	35,000
Autostrade per l'Italia loan issued 2012	2032	48,600	48,600	-	48,600	-	48,600	48,600	48,600	-	48,600
Autostrade per l'Italia loan issued 2012	2018	1,000,000	988,549	-	988,549	988,549	-	1,000,000	984,936	-	984,936
Autostrade per l'Italia loan issued 2013	2033	75,000	75,000	-	75,000	-	75,000	75,000	75,000	-	75,000
Autostrade per l'Italia loan issued 2013	2021	750,000	750,000	-	750,000	-	750,000	750,000	750,000	-	750,000
Autostrade per l'Italia loan issued 2014	2038	75,000	75,000	-	75,000	-	75,000	75,000	75,000	-	75,000
Autostrade per l'Italia loan issued 2014	2034	125,000	125,000	-	125,000	-	125,000	125,000	125,000	-	125,000
- fixed rate		6,656,526	6,647,335	882,732	5,764,603	3,006,827	2,757,776	8,007,776	8,007,890	-	8,007,890
Autostrade per l'Italia loan issued 2004	2022	750,000	750,000	-	750,000	-	750,000	750,000	750,000	-	750,000
- floating rate		750,000	750,000	-	750,000	-	750,000	750,000	750,000	-	750,000
Loans to subsidiaries		7,406,526	7,397,335	882,732	6,514,603	3,006,827	3,507,776	8,757,776	8,757,890	-	8,757,890
Bonds held (1)		286,682	346,262	-	346,262	-	346,262	-	-	-	-
Derivative assets			216,686	-	216,686	-	216,686		245,232	-	245,232
Accrued income of medium/long-term financial assets			219,464	219,464	-	-	-		259,391	259,391	-
Other loans and receivables			984	128	856	856	-		548	79	469
Medium/long-term financial assets	A	7,693,208	8,180,731	1,102,324	7,078,407	3,007,683	4,070,724	8,757,776	9,263,061	259,470	9,003,591
Other current financial assets	B	6,947	6,947	6,947	-	-	-	8,167	8,167	8,167	-
Financial assets		A+B 7,700,155	8,187,678	1,109,271	7,078,407	3,007,683	4,070,724	8,765,943	9,271,228	267,637	9,003,591
(1) As at 31 December 2015, these assets are hedged against interest rate and currency risk with notional amounts and maturities matching those of the underlyings. These are classified as cash flow hedges in accordance with IAS 39 and included in

"Derivative assets".

b) the type of interest rate applied, the maturity and the fair value:

€000			31 December 2015		31 December 2014
	Maturity		Carrying amount (1)	Fair value (2)	Carrying amount (1)	Fair value (2)
Autostrade per l'Italia loan issued 2004	2024		1,000,000	1,379,059	1,000,000	1,406,123
Autostrade per l'Italia loan issued 2009	2016		882,732	931,511	1,515,178	1,668,426
Autostrade per l'Italia loan issued 2009	2038		149,176	221,050	149,176	225,613
Autostrade per l'Italia loan issued 2010	2017		597,360	637,456	1,000,000	1,092,782
Autostrade per l'Italia loan issued 2010	2025		500,000	620,507	500,000	627,856
Autostrade per l'Italia loan issued 2012	2019		764,028	900,273	1,000,000	1,209,373
Autostrade per l'Italia loan issued 2012	2020		656,890	786,815	750,000	915,794
Autostrade per l'Italia loan issued 2012	2032		35,000	46,941	35,000	47,895
Autostrade per l'Italia loan issued 2012	2032		48,600	67,602	48,600	69,023
Autostrade per l'Italia loan issued 2012	2018		988,549	1,103,087	984,936	1,125,646
Autostrade per l'Italia loan issued 2013	2033		75,000	92,068	75,000	93,714
Autostrade per l'Italia loan issued 2013	2021		750,000	852,879	750,000	827,648
Autostrade per l'Italia loan issued 2014	2038		75,000	91,002	75,000	92,531
Autostrade per l'Italia loan issued 2014	2034		125,000	140,524	125,000	142,700
- fixed rate			6,647,335	7,870,774	8,007,890	9,545,122
Autostrade per l'Italia loan issued 2004	2022		750,000	765,644	750,000	759,377
- floating rate (3)			750,000	765,644	750,000	759,377
Loans to subsidiaries			7,397,335	8,636,418		8,757,890 10,304,500
Derivative assets			216,686	216,686	245,232	245,232
Bonds held (3)			346,262	346,262	-	-
Other loans and receivables			984	984	548	548
Accrued income of medium/long-term financial assets			219,464	-	259,391	-
Medium/long-term financial assets		A	8,180,731	9,200,350		9,263,061 10,550,280
Other current financial assets		B	6,947	6,947	8,167	8,167
Financial assets		A+B	8,187,678	9,207,297		9,271,228 10,558,447

(1) The value of medium/long-term financial assets shown in the table includes both the non-current and current portions.

(2) The fair value shown is classified in level 2 of the fair value hierarchy.

(3) As at 31 December 2015, these assets are hedged against interest rate and currency risk with notional amounts and maturities matching those of the underlyings. These are classified as cash flow hedges in accordance with IAS 39 and included in "Derivative assets".

Details of the criteria applied in determining the fair values shown in the table are provided in note 3;

c) a comparison of the face value and the related carrying amount of loans to subsidiaries and bonds held, indicating the related currency, showing the average and effective yield:

€000			31 December 2015		31 December 2014
	Face value	Carrying amount	Average interest rate applied to 31 December 2015 (1)	Effective interest rate as at 31 December 2015	Face value	Carrying amount
Loans to subsidiaries (€)	7,406,526	7,397,335	4.68%	4.34%	8,757,776	8,757,890
Bonds held (sterling)	286,682 346,262		4.26%	1.52% -		-

(1) This amount includes the impact of interest rate hedges outstanding as at 31 December 2015.

d) changes in the carrying amounts of loans to subsidiaries and bonds held during the period:

€000	Carrying amount as at 31 December 2014 (1)	Additions	Repayments received	Currency translation differences and other changes	Carrying amount as at 31 December 2015 (1)
Loans to subsidiaries	8,757,890	-	1,351,250	-9,305	7,397,335
Bonds held	-	346,885	-	-623 (2)	346,262

(1) The loans shown in the table include both the non-current and current portions.

(2) Accrued portion of the premium payable to Romulus Finance's noteholders, totalling €6,502 thousand, was partially offset by the positive impact of exchange rate movements, totalling €5,879 thousand.

There is no evidence of impairment of any of the above financial assets.

4.5 Other non-current assets €275 thousand (€337 thousand)

This item regards prepayments for long-term insurance policies.

4.6 Trading assets €4,280 thousand (€4,447 thousand)

This item, which primarily regards trade receivables due from Group companies, is essentially in line with the figure for 31 December 2014.

The carrying amount of trade receivables approximates to fair value.

4.7 Cash and cash equivalents €417,480 thousand (€465,322 thousand)

This item includes:

• a) cash equivalents of €400,000 thousand (€250,000 thousand as at 31 December 2014), including liquidity invested in Autostrade per l'Italia (€200,000 thousand maturing on 29 January 2016 and €200,000 thousand maturing on 29 February 2016);
• b) the balance receivable on the intercompany current account with the subsidiary, Autostrade per l'Italia, totalling €13,329 thousand (€212,946 thousand as at 31 December 2014), the reduction in which is connected with the events described in point a);
• c) bank deposits of €4,151 thousand (€2,376 thousand as at 31 December 2014).

The overall reduction in cash and cash equivalents is essentially linked to cash generated from operating activities and the cash outflow relating to the buyback of the notes issued by Romulus Finance (described in note 4.4 above), partially offset by the cash resulting from the sale in the market of a portion of the Company's treasury shares and the greater value of dividends received compared with those paid.

Detailed explanations of the cash flows resulting in the decrease in the Group's cash at the end of 2015 are contained in note 6.1.

4.8 Current tax assets and liabilities Current tax assets €29,456 thousand (€31,281 thousand) Current tax liabilities €18,127 thousand (€14,372 thousand)

Current tax assets and liabilities at the beginning and end of the period are detailed below.

€000		Current tax assets		Current tax liabilities
	31 December 2015	31 December 2014	31 December 2015	31 December 2014
IRAP	601	362	-	-
IRES	-	9,357	4,348	-
IRES from tax consolidation (1)	28,855	21,562	13,779	14,372
Total	29,456	31,281	18,127	14,372

(1) Tax assets and liabilities due from and to the companies participating in the tax consolidation arrangement, as described below.

Atlantia SpA operates a tax consolidation arrangement, on the basis of Legislative Decree 344/2003, in which the following participated in 2015:

• a) the direct subsidiaries, Autostrade per l'Italia, Aeroporti di Roma, Pavimental and Spea Engineering;
• b) the indirect subsidiaries (through Autostrade per l'Italia), Tangenziale di Napoli, EsseDiEsse Società di Servizi, AD Moving, Autostrade Meridionali, Autostrade dell'Atlantico, Giove Clear, Telepass, Infoblu e Autostrade Tech and the indirect subsidiaries (through Aeroporti di Roma), ADR Assistance, ADR Tel, ADR Security and ADR Mobility.

As a result, Atlantia recognises the following items in its current tax assets and liabilities:

• a) current tax assets and liabilities for IRES attributable to the companies included in the arrangement;
• b) matching receivables or payables due from or to the subsidiaries, in connection with the transfer of funds as a result of the tax consolidation.

The balance of IRES (a liability of €4,348 thousand) essentially regards:

• a) IRES payable, deriving from the calculation of current tax expense, less payments on account or offsets, by the companies included in the tax consolidation arrangement, totalling €32,563 thousand;
• b) IRES payable by the Company for the period under review, totalling €4,971 thousand;
• c) IRES refundable to the Company and the companies included in the tax consolidation arrangement, amounting to €33,091 thousand and regarding:
  • 1) €31,756 thousand in IRES following the failure to deduct IRAP paid on staff costs during the fouryear period 2008-2011, in accordance with the provisions of Law 44 of 26 April 2012 and the tax authorities' ruling of 17 December 2012;
  • 2) €1,278 thousand in IRES due to IRAP deductible for the tax years 2004-2007, in accordance with art. 6 of Law 2 of 28 January 2009.

The reduction in net tax assets of €5,580 thousand essentially reflects:

• a) provision for IRES payable for 2015 (€4,971 thousand) after payments on account (€622 thousand, in that the Company offset a portion of the credit for 2014, amounting to €5,366 thousand);
• b) collection of the remaining IRES credit for 2014 (€2,728 thousand);
• c) positive changes in estimates of the tax due for previous years (€1,253 thousand).

Moreover, in 2015, the Company recovered the tax credit, amounting to €3,625 thousand, included in the total for 2014, as referred to in point a). This was accounted for in 2013 following the merger with Gemina and relates to tax losses that may be carried forward by Gemina, as they were realised in the portion of the tax year prior to the legally effective date of its merger with and into the Company (1 January to 30 November 2013). In July 2015, the tax authorities responded to the request for an opinion submitted in accordance with art. 172, Presidential Decree 600 of 29 September 1973, for the purposes of disapplying art. 172 of Presidential Decree 917 of 22 December 1986. The response confirmed the deductible nature of the above losses.

4.9 Other current assets €28,477 thousand (€1,304 thousand)

This item, consisting of receivables and other current assets that are not eligible for classification as trading or financial, is up €27,173 thousand. This essentially reflects the recognition of amounts due from certain subsidiaries, totalling €26,919 thousand, as a result of the Group VAT arrangement governed by Ministerial Decree 11065 of 13 December 1979, which the Company has adopted since 2015. Similarly, other current liabilities, described in note 4.16, include payables due to other subsidiaries linked to the above arrangement and the matching amount payable to the tax authorities, which, as at 31 December 2015, is broadly offset by the payment on account of VAT in December 2015 on behalf of all the companies participating in the arrangement. Amounts due to and from the companies participating in the arrangement were settled in January 2016.

In 2015, the Group VAT arrangement included the direct subsidiaries, Autostrade per l'Italia, Aeroporti di Roma and Mizard, and the indirect subsidiary (controlled via Autostrade per l'Italia), Autostrade Meridionali.

4.10 Equity €9,708,330 thousand (€9,437,975 thousand)

Atlantia SpA's issued capital as at 31 December 2015 is fully subscribed and paid-in and consists of 825,783,990 ordinary shares with a par value of €1 each, amounting to €825,784 thousand. The issued capital did not undergo any changes in 2015.

As at 31 December 2015, the number of shares outstanding totals 823,382,237 (813,156,189 as at 31 December 2014) and the number of treasury shares totals 2,401,753 (12,627,801 as at 31 December 2014). The increase in shares outstanding and the accompanying decrease in treasury shares reflects the sale of 9,741,513 shares in the market and the transfer of 484,535 shares to the beneficiaries of share-based incentive plans, as described in note 7.3.

Equity has increased by €270,355 thousand compared with 31 December 2014, primarily due to:

• a) comprehensive income for the year, totalling €732,120 thousand, essentially due to the effect of profit for the year (€733,409 thousand);
• b) proceeds of €227,952 thousand from the above sale of treasury shares, compared with a carrying amount of the treasury shares sold of €158,120 thousand;
• c) payment of the final dividend for 2014, amounting to €366,309 thousand (€0.445 per share) and the interim dividend for 2015, amounting to €329,345 thousand (€0.400 per share).

With regard to point b), the sale of treasury shares in the market, completed on 10 March 2015, took the form of an accelerated book building process aimed at institutional investors. The sale was completed at a price of €23.40 per share, representing a 1.38% discount to the average market price for the relevant trading day. Settlement of the transaction took place on 13 March 2015.

Atlantia manages its capital with a view to creating value for shareholders, ensuring the Group can function as a going concern, safeguarding the interests of stakeholders, and providing efficient access to external sources of financing to adequately support the growth of the Group's businesses.

The table below shows an analysis of issued capital and equity reserves, showing their permitted uses and distributable amounts.

Description	Equity as at 31 December 2015	Permitted uses	Available portion	Uses between 1 January 2012 and 31 December 2015
	(€000)	(A, B, C)*	(€000)	To cover losses	For other reasons
Issued capital	825,784 (1)	B	-	-	-
Share premium reserve	154	A, B, C	154	-	-
Legal reserve	261,410	A (2), B	96,253	-	-
Extraordinary reserve	4,983,991	A, B, C	4,983,991	-	49,972 (3)
Treasury shares in portfolio	38,985		-	-	-
Merger reserve	2,987,182 (4)	A, B, C	2,987,182	-	-
Cash flow hedge reserve	55,801	B	-	-	-
Reserve for actuarial gains and losses on post-employment benefits	-458 (5)		-458
Restricted reserve for Contingent Value Rights	18,456	A, B	-	-	-
Other reserves	77,163 (6)	A, B, C	77,163	-	-
Retained earnings	94,783	A, B, C	94,783	-	-
Reserves and retained earnings	8,517,467		8,239,068	-	49,972
Treasury shares	-38,985 (7)		-
Total	9,304,266		8,239,068	-	49,972
of which:
Non-distributable			-
Distributable			8,239,068

* Key:

A: capital increases

B: to cover losses

C: shareholder distributions

Notes

(1) Of which €730,643 thousand related to capital increases: €163,956 thousand relating to the merger with Gemina SpA in 2013 and €566,687 thousand relating to the merger of Autostrade with and into the former NewCo28 SpA in 2003. With reference for the Autostrade merger to art. 172, paragraph 5 of the Consolidated Income Tax Act, this capital increase is restricted to the following reserves that are taxable on distribution:

• revaluation reserve pursuant to Law 72/1982, amounting to €556,960 thousand;

• revaluation reserve pursuant to Law 413/1991, amounting to €6,807 thousand;

• revaluation reserve pursuant to Law 342/2000, amounting to €2,920 thousand.

(2) €96,253 thousand of which being the excess over one fifth of the issued capital.

(3) This item regards the following uses:

• bonus issues in 2012, totalling €31,516 thousand;

• established of the restricted reserve for Contingent Value Rights issued in connection with the merger with Gemina in 2013, amounting to €18,456 thousand. Si segnala, inoltre, l'aumento gratuito di capitale avvenuto nel 2011, pari a 30.015 migliaia di euro.

(4) With reference to art. 172, paragraph 5 of the Consolidated Income Tax Act, the merger surplus of €448,999 thousand generated by the merger in 2003 described in note (1) is restricted to and accounted for in the following reserves that are taxable on distribution:

• reserve for capital contributions, amounting to €8,113 thousand;

• revaluation reserve pursuant to Law 72/1982, amounting to €368,840 thousand;

• revaluation reserve pursuant to Law 413/1991, amounting to €50,416 thousand;

• revaluation reserve pursuant to Law 342/2000, amounting to €21,630 thousand.

(5) Reserves with a zero balance are included in the calculation of the available portion.

(6) This item essentially includes:

• €66,575 thousand recognised in equity following the sale of treasury shares in the market and the exercise and conversion of a number of options and units granted under the share-based incentive plans;

• €10,595 thousand relating to the "Reserve for share-based incentive plans".

(7) Pursuant to art. 2357 of the Italian Civil Code, the General Meeting of shareholders held on 21 April 2015 authorised the purchase of treasury share with a value of up to €1,900,000,000.

Other components of comprehensive income

The section "Financial statements" includes the "Statement of comprehensive income", which, in addition to profit for the year, includes other components of comprehensive income, after the related taxation. The following table shows the gross amounts of these other components and the related taxation.

€000	Note	2015	2014
Profit for the year	(A)	733,409	686,217
Fair value gains/(losses) on cash flow hedges		-4,984	32,372
Tax effect on fair value gains/(losses) on cash flow hedges		3,682	-10,706
Other comprehensive income for the year reclassifiable to profit or loss after the related taxation	(B)	-1,302	21,666
Gains/(losses) from actuarial valuations of provisions for employee benefits		1 8	-123
Tax effect on gains/(losses) from actuarial valuations of provisions for employee benefits		-5	3 3
Other comprehensive income for the year not reclassifiable to profit or loss after the related taxation	(C)	1 3	-90
Reclassifications of other components of comprehensive income to profit or loss for the year	(D)	-	-
Total other comprehensive income/(loss) for the year after the related taxation	(E=A+B+C+D)	-1,289	21,576
Comprehensive income for the year	(A+E)	732,120	707,793

The "Total other comprehensive loss for the year, after the related taxation" amounts to €1,289 thousand and reflects the fact that the following broadly offset each other:

• a) fair value losses of €12,870 thousand on existing hedging derivatives, linked to an increase in interest rates as at 31 December 2015, compared with those as at 31 December 2014;
• b) fair value gains of €7,887 thousand on new cash flow hedges entered into by the Company in relation to its buyback of sterling-denominated notes issued by Romulus Finance, as described in note 4.4;
• c) the positive impact of the reassessment of net deferred taxation, amounting to €2,033 thousand, reflecting the reduction in the IRES rate introduced by the 2016 Stability Law (Law 208/2015).

In contrast, in 2014, after-tax fair value gains on derivative financial instruments amounted to €21,666 thousand, reflecting the reduction in interest rates as at 31 December 2014, compared with those as at 31 December 2013.

4.11 Provisions (non-current) €749 thousand (€896 thousand) (current) €1,675 thousand (€1,568 thousand)

PROVISIONS FOR EMPLOYEE BENEFITS (non-current) €749 thousand (€896 thousand) (current) €138 thousand (€31 thousand)

As at 31 December 2015, this item refers solely to provisions for post-employment benefits. The balance is broadly in line with 31 December 2014.

The most important actuarial assumptions used to measure the provision for post-employment benefits at 31 December 2015 are summarised below.

Financial assumptions
Annual discount rate(*)	1.39%
	1.50% for 2016
	1.80% for 2017
Annual inflation rate	1.70% for 2018
	1.60% for 2019
	2.00% from 2020 on
	2.625% for 2016
Annual rate of increase in post	2.850% for 2017
employment benefits	2.775% for 2018
	2.700% for 2019
	3.000% from 2020 on
Annual rate of increase in real salaries	0.65%
Annual turnover rate	3.50%
Annual rate for advances paid	3.00%
Duration (years)	7.6
(1) The annual discount rate is used to determined the present value of the obligation and was, in turn, determined with reference to the average yield curve taken from the Iboxx Eurozone Corporate AA on the valuation date for durations of 7-10 years which reflect the overall duration of the provisions.
Demographic assumptions
Mortality	Government General Accounting Office projections
Disability	INPS tables by age and sex
Retirement age	Mandatory state pension retirement age

The following table shows a sensitivity analysis for each actuarial assumption at the end of 2015, showing the impact on the defined benefit obligation of assumed changes in the individual rates used in the actuarial assumptions.

€000	Sensitivity analysis
	CHANGE IN ASSUMPTION
	turnover rate		inflation rate			discount rate
	+1%	-1%	+0.25%	-0.25%	+0.25%	-0.25%
Balance post employment benefits	885	891	897	879	873	903

OTHER PROVISIONS (non-current) - (-) (current) €1,537 thousand (€1,537 thousand)

Provisions for tax liabilities and contract disputes are unchanged with respect to 31 December 2014, given no changes in the estimated potential liabilities to be met.

4.12 Financial liabilities (non-current) €6,627,154 thousand (€8,869,037 thousand) (current) €1,091,876 thousand (€250,866 thousand)

MEDIUM/LONG-TERM BORROWINGS (non-current) €6,627,154 thousand (€8,869,037 thousand) (current) €1,091,550 thousand (€249,584 thousand)

The following tables provide an analysis of outstanding medium to long-term financial liabilities with respect to:

a) the composition of the carrying amount (current and non-current), the related face value and terms to maturity:

€000			31 December 2015						31 December 2014
				of which		Term					of which
	Maturity	Face value	Carrying amount	Current portion	Non-current portion	between 13 and 60 months	after 60 months	Face value	Carrying amount	Current portion	Non-current portion
GBP Bond issue 2004 (1) (2)	2022	750,000	680,876	-	680,876	-	680,876	750,000	641,516	-	641,516
Bond issue 2004	2024	1,000,000	993,239	-	993,239	-	993,239	1,000,000	992,637	-	992,637
Bond issue 2009	2016	880,472	882,489	882,489	-	-	-	1,500,000	1,513,568	-	1,513,568
Bond issue 2010	2017	597,360	595,691	-	595,691	595,691	-	1,000,000	995,898	-	995,898
Bond issue 2010	2025	500,000	495,786	-	495,786	-	495,786	500,000	495,445	-	495,445
Bond issue 2012	2019	764,028	758,353	-	758,353	758,353	-	1,000,000	990,578	-	990,578
Bond issue 2012	2020	656,890	653,121	-	653,121	653,121	-	750,000	744,926	-	744,926
Bond issue 2012	2032	35,000	35,000	-	35,000	-	35,000	35,000	35,000	-	35,000
Retail bond issue 2012	2018	1,000,000	983,517	-	983,517	983,517	-	1,000,000	978,748	-	978,748
Bond issue 2013	2021	750,000	742,979	-	742,979	-	742,979	750,000	741,776	-	741,776
Bond issue 2014	2034	125,000	123,699	-	123,699	-	123,699	125,000	123,514	-	123,514
listed fixed rate		7,058,750	6,944,750	882,489	6,062,261	2,990,682	3,071,579	8,410,000	8,253,606	-	8,253,606
JPY Bond issue 2009 (1) (2)	2038	149,176	152,014	-	152,014	-	152,014	149,176	137,123	-	137,123
Zero coupon bond issue 2012	2032	58,858	58,858	-	58,858	-	58,858	54,023	54,023	-	54,023
Bond issue 2013	2033	75,000	72,489	-	72,489	-	72,489	75,000	72,391	-	72,391
Bond issue 2014	2038	75,000	72,514	-	72,514	-	72,514	75,000	72,443	-	72,443
unlisted fixed rate		358,034	355,875	-	355,875	-	355,875	353,199	335,980	-	335,980
Bond issues (3)	A	7,416,784	7,300,625	882,489	6,418,136	2,990,682	3,427,454	8,763,199	8,589,586	-	8,589,586
Derivative liabilities (4)	B		209,018	-	209,018	-	209,018		279,451	-	279,451
Accrued expenses on medium/long-term financial liabilities (3)	C		209,061	209,061	-	-	-		249,584	249,584	-
Medium/long-term financial liabilities	A+B+C	7,416,784	7,718,704	1,091,550	6,627,154	2,990,682	3,636,472	8,763,199	9,118,621	249,584	8,869,037
(1) As at 31 December 2015, these assets are hedged against interest rate and currency risk with notional amounts and maturities matching those of the underlyings. These are classified as cash flow hedges in accordance with IAS 39 and included in

(1) As at 31 December 2015, these assets are hedged against interest rate and currency risk with notional amounts and maturities matching those of the underlyings. These are classified as cash flow hedges in accordance with IAS 39 and included in
	"Derivative liabilities".

(2) The euro par value is calculated on the basis of the exchange rate fixed at the time of execution of the hedges, which are Cross Currency Swaps.

(3) These financial instruments are classified as financial liabilities measured at amortised cost, in accordance with IAS 39.

(4) These financial instruments are classified as hedging derivatives in level 2 of the fair value hierarchy.

b) type of interest rate, maturity and fair value:

€000	Maturity		31 December 2015		31 December 2014
			Carrying amount (1)	Fair value (2)	Carrying amount (1)	Fair value (2)
GBP Bond issue 2004 (3)	2022		680,876	814,885	641,516	788,341
Bond issue 2004	2024		993,239	1,348,200	992,637	1,410,290
Bond issue 2009	2016		882,489	896,541	1,513,568	1,603,440
Bond issue 2010	2017		595,691	629,576	995,898	1,077,710
Bond issue 2010	2025		495,786	618,545	495,445	640,410
Bond issue 2012	2019		758,353	859,050	990,578	1,151,420
Bond issue 2012	2020		653,121	757,933	744,926	884,318
Bond issue 2012	2032		35,000	45,316	35,000	47,921
Retail bond issue 2012	2018		983,517	1,093,300	978,748	1,109,490
Bond issue 2013	2021		742,979	821,378	741,776	835,523
Bond issue 2014	2034		123,699	141,069	123,514	149,735
listed fixed rate			6,944,750	8,025,793	8,253,606	9,698,598
JPY Bond issue 2009 (3)	2038		152,014	226,282	137,123	205,034
Zero coupon bond issue 2012	2032		58,858	85,959	54,023	84,847
Bond issue 2013	2033		72,489	87,735	72,391	89,176
Bond issue 2014	2038		72,514	86,726	72,443	88,087
unlisted fixed rate			355,875	486,702	335,980	467,144
Bond issues		A	7,300,625	8,512,495	8,589,586	10,165,742
Derivative liabilities		B	209,018	209,018	279,451	279,451
Accrued expenses on medium/long-term financial		C	209,061	-	249,584	-
Medium/long-term financial liabilities		A+B+C	7,718,704	8,721,513	9,118,621	10,445,193

(1) The medium/long-term financial liabilities shown in the table include both current and non-current portions.

(2) The fair value shown is classified in level 2 of the fair value hierarchy.

(3) As at 31 December 2015, these assets are hedged against interest rate and currency risk with notional amounts and maturities matching those of the underlyings. These are classified as cash flow hedges in accordance with IAS 39 and included in "Derivative liabilities".

The methods of fair value measurement used are dealt with in note 3;

c) a comparison of the par value and the carrying amount of bond issues, showing the currency of issue, and the average and effective interest rates:

€000		31 December 2015	31 December 2014
Currency	Par value	Carrying amount	Average interest rate applied to 31 December 2015 (1)	Effective interest rate as at 31 December 2015	Par value	Carrying amount
Euro (EUR)	6,517,608	6,467,735	4.17%	4.49%	7,864,023	7,810,947
Sterling (GBP)	750,000	680,876	5.99%	6.26%	750,000	641,516
Jen (JPY)	149,176	152,014	5.30%	5.48%	149,176	137,123
Bond issues		7,416,784 7,300,625	4.40%		8,763,199	8,589,586

1) This amount includes the impact of interest rate and foreign currency hedges as at 31 December 2015.

d) movements during the period in the carrying amounts of outstanding bond issues:

€000	Carrying amount as at 31 December 2014 (1)	New issues	Redemptions	Currency translation differences and other changes	Carrying amount as at 31 December 2015 (1)
Bond issues	8,589,586	-	1,351,250	62,289	7,300,625

(1) The value of the bond issues shown in the table includes both the non-current and current portions.

Changes in the individual components of medium/long-term liabilities with respect to 31 December 2014 relate to:

• a) a reduction of €1,288,961 thousand in bond issues, essentially due to the partial early redemption of bonds issued by the Company and maturing in 2016, 2017, 2019 and 2020, amounting to a total par value of €1,351,250 thousand;
• b) fair value losses of €70,433 thousand on derivative financial instruments, primarily as a result of the strengthening of sterling and the yen against the euro, partially offset by matching changes in the underlying financial liabilities;
• c) a reduction of €40,523 thousand in accrued expenses payable, consisting of interest payable, essentially due to the above partial early redemption of bonds issued by the Company.

Further information on the early redemption of bonds described in point a) is provided in note 5.10, whilst details of the hedging strategy and of the derivatives entered into to hedge certain financial assets (indicated in the above table) are provided in note 6.2.

Atlantia's Medium Term Note (MTN) and a number of Autostrade per l'Italia's long-term loan agreements, for which Atlantia is guarantor, include include negative pledge provisions, in line with international practice. Under these provisions, it is not possible to create or maintain (unless required to do so by law) collateral guarantees on all or a part of any proprietary assets, with the exception of project debt.

SHORT-TERM FINANCIAL LIABILITIES €326 thousand (€1,282 thousand)

The reduction of €956 thousand primarily reflects settlement of accrued financial expenses relating to fees payable on the guarantee given on behalf of the indirect subsidiary, Ecomouv, in favour of its creditor banks. This guarantee was released on 3 March 2015.

NET DEBT IN COMPLIANCE WITH ESMA RECOMMENDATION OF 20 MARCH 2013

An analysis of total net debt is shown below with amounts payable to and receivable from related parties, as required by CONSOB Ruling DEM/6064293 of 28 July 2006, in accordance with European Securities and Markets Authority - ESMA Recommendation of 20 March 2013 (which does not entail the deduction of noncurrent financial assets from debt). of whi ch of whi ch

€000	Note	31 December 2015	of whi ch rel ated party	31 December 2014	of whi ch rel ated party
Cash		-4,151	transacti ons	-2,376	transacti ons
Cash equivalents and intercompany current account receivables due from related parties		-413,329	-413,329	-462,946	-462,946
Cash and cash equi val ents (A)	4.7	-417,480		-465,322
Current fi nanci al assets (B)	4.4	-1,109,271	-1,083,929	-267,637	-244,687
Current portion of medium/long-term financial liabilities		1,091,550		249,584
Other financial liabilities		326		1,282
Current fi nanci al assets (C)		1,091,876		250,866
Current net debt (D=A+B+C)		-434,875		-482,093
Bond issues		6,418,136		8,589,586
Non-current derivative liabilities		209,018		279,451
Non-current fi nanci al l i abi l i ti es (E)		6,627,154		8,869,037
(Net funds) / Net debt as defi ned by ESMA recommendati on F	= (D+E)	6,192,279		8,386,944
Non-current fi nanci al assets (G)	4.4	-7,078,407	-7,076,988	-9,003,591	-9,003,122
Net debt H= (F +G)		-886,128		-616,647

4.13 Net deferred tax liabilities €35,549 thousand (€40,784 thousand)

The following tables show deferred tax liabilities, after offsetting against deferred tax assets.

€000	31 December 2015	31 December 2014
Deferred tax liabilities (IRES)	66,512	80,342
Deferred tax liabilities (IRAP)	12,502	13,684
Deferred tax liabilities	79,014	94,026
Deferred tax assets eligible for offset (IRES)	35,459	44,335
Deferred tax assets eligible for offset (IRAP)	8,006	8,907
Deferred tax assets eligible for offset	43,465	53,242
Net deferred tax liabilities	35,549	40,784

The nature of the temporary differences giving rise to deferred tax assets and liabilities and changes during the year are summarised in the following table.

	CHANGES DURING THE YEAR
	31 December 2014	Provisions	Releases	Deferred tax assets/liabilities on gains and losses recognised in comprehensive income	Changes in prior year estimates	Effect of change in rate
€000						Profit or loss	Other comprehensive income	31 December 2015
Gains on hedging derivatives	81,100	-	-	-7,020	-	-	-6,471	67,609
Difference between carrying amounts and fair values of assets and liabilities acquired through business combinations (the merger with Gemina with effect from 1 December 2013)	12,606	-	-	-	-	-1,605	-	11,001
Other temporary differences	320	136	-	-	-	-52	-	404
Deferred tax liabilities	94,026	136	-	-7,020	-	-1,657	-6,471	79,014
Losses on hedging derivatives	52,884	-	-	-5,371		-	-4,438	43,075
Other temporary differences	358	275	-232	-	4	-15	-	390
Deferred tax assets eligible for offset	53,242	275	-232	-5,371	4	-15	-4,438	43,465
Net deferred tax liabilities	40,784	-139	232	-1,649	- 4	-1,642	-2,033	35,549

The reduction in net deferred tax liabilities, totalling €5,235 thousand, is essentially due to:

• a) the positive impact on comprehensive income, amounting to €3,675 thousand, of the reassessment of net deferred taxation following the reduction in the IRES (corporation tax) rate from 27.5% to 24% from 2017, introduced by the 2016 Stability Law (Law 208/2015);
• b) net fair value gains (€1,649 thousand), recognised in other comprehensive income, on hedging derivative assets and liabilities.

4.14 Other non-current liabilities €3,889 thousand (€1,163 thousand)

Other non-current liabilities, have increased €2,726 thousand compared with 31 December 2014 due primarily to the effect of the provision for the year for share-based incentive plans, including cash payments due to the beneficiaries of the plans, as described in note 7.3.

4.15 Trading liabilities €4,660 thousand (€6,224 thousand)

Trade payables primarily regard those due to Group companies (€3,010 thousand, essentially due to Autostrade per l'Italia) and amounts due to the providers of professional services (€1,650 thousand). The reduction of €1,564 thousand compared with 31 December 2014 primarily refers to payment for professional services accounted for as at 31 December 2014.

The carrying amount of trade payables approximates to fair value.

4.16 Other current liabilities €19,834 thousand (€17,166 thousand)

The composition of this item is shown in the following table.

€000	31 December 2015	31 December 2014
Sundry amounts due to subsidiaries	11,153	12,780
Payable to staff	3,509	1,870
Taxation other than income taxes	1,758	985
Social security contributions payable	1,418	831
Other payables	1,996	700
Other current liabilities	19,834	17,166

The balance of other current liabilities is substantially in line with the previous year. As at 31 December 2015, this item primarily regards amounts payable to Aeroporti di Roma and its subsidiaries:

• a) €7,470 thousand, relating to the tax consolidation agreement with Gemina prior to the merger in 2013, consisting of a contra entry for current tax assets deriving from application for an IRES refund following the failure to deduct IRAP paid on staff costs during the five-year period 2007-2011, as described in note 4.8;
• b) €3,528 thousand in VAT payable under the Group VAT arrangement described in the note 4.9.

The reduction in amounts payable to subsidiaries is primarily linked to a combination of the following:

• a) payment of amounts due to Aeroporti di Roma, totalling €4,225 thousand, under the indemnity previously provided by Gemina to the subsidiary, following the judgement settling the subsidiary's dispute with the tax authorities;
• b) the recognition of payables linked to the above Group VAT arrangement.

Finally, the increase in the amount payable to staff primarily regards the impact of the adjustment of the fair value of additional phantom options on the 2011 share option plan, as described in note 7.3.

5 NOTES TO THE INCOME STATEMENT

This section contains analyses income statement items. Negative components of the income statement are indicated with a minus sign in the headings and tables in the notes, whilst amounts for 2014 are shown in brackets. Details of amounts in the income statement deriving from related party transactions are provided in note 7.2.

5.1 Operating income €2,100 thousand (€1,592 thousand)

Operating income, which is substantially in line with 2013, primarily regards cost recoveries and rental income from subsidiaries.

5.2 Raw and consumable materials -€66 thousand (-€31 thousand)

These costs relate primarily to purchases of office materials.

5.3 Service costs -€11,765 thousand (-€9,247 thousand)

An analysis of service costs is provided below.

€000	2015	2014	INCREASE/ (DECREASE)
Professional services	-9,578	-4,811	-4,767
Advertising and promotions	-807	-3,139	2,332
Remuneration of Statutory Auditors	-326	-330	4
Insurance	-190	-310	120
Other services	-864	-657	-207
Service costs	-11,765	-9,247	-2,518

The overall increase of €2,518 thousand compared with the previous year is essentially due to the increased costs incurred for professional services, primarily relating to investment of the Company's available liquidity in the buyback of notes issued by Romulus Finance, partially offset by a reduction in the cost of corporate advertising (in 2014, these costs related to the "Atlantia – La Passione di muovere il Paese" ("Atlantia – A passion for moving the country") advertising campaign.

5.4 Staff costs -€15,449 thousand (-€8,523 thousand)

The composition of this item and details of changes between the two comparative periods are shown in the following table.

€000	2015	2014	INCREASE/ (DECREASE)
Wages and salaries	-9,299	-5,915	-3,384
Recovery of cost of seconded staff	2,707	2,493	214
Social security contributions	-2,449	-1,446	-1,003
Directors' remuneration	-2,357	-1,613	-744
Cost of share-based incentive plans	-2,305	-926	-1,379
Post-employment benefits (including payments to supplementary pension funds or to INPS)	-735	-303	-432
Other staff costs	-1,011	-813	-198
Staff costs	-15,449	-8,523	-6,926

The increase of €6,926 thousand compared with 2014 is due to an increase of 16 in the average workforce, as shown in the following table, primarily reflecting the transfer of personnel from Autostrade per l'Italia to Atlantia during 2014 and the greater impact of share-based incentive plans as a result of the benefits granted to certain of the Company's directors and staff, as described in detail in the note 7.3.

The average workforce breaks down as follows by category:

Workforce	2015	2014	INCREASE/ (DECREASE)
Senior managers	20	13	7
Middle managers and
administrative staff	39	30	9
Average workforce	5 9	4 3	1 6

5.5 Other operating costs -€4,699 thousand (-€4,879 thousand)

The composition of this item and details of changes between the two comparative periods are shown in the following table.

€000	2015	2014	INCREASE/ (DECREASE)
Lease expense	-1,045	-548	-497
Indirect taxes and duties	-3,180	-3,892	712
Grants and donations	-315	-139	-176
Other	-159	-300	141
Other costs	-3,654	-4,331	677
Other operating costs	-4,699	-4,879	180

The balance, essentially in line with the comparative period, primarily includes non-deductible VAT of €2,559 thousand (€3,353 thousand in 2014) and rental expense of €1,045 thousand (€548 thousand in 2014), primarily payable to the subsidiary, Autostrade per l'Italia.

5.6 Financial income/(expenses) €766,257 thousand (€633,696 thousand)

Financial income €1,397,658 thousand (€1,210,661 thousand) Finance expenses €631,871 thousand (€577,363 thousand) Foreign exchange gains/(losses) €470 thousand (€398 thousand)

An analysis of financial income and expenses and details of changes between the two comparative periods are shown below.

€000	2015	2014	INCREASE/ (DECREASE)
Dividends received from investees	794,023	670,009	124,014
Interest income	358,865	438,060	-79,195
Income from derivative financial instruments	98,638	81,133	17,505
Income from measurement of financial instruments at amortised cost	15,330	13,333	1,997
Gain on sale of investments	-	1	-1
Other	130,802	8,125	122,677
of which non-recurring (1)	125,486	-	125,486
Other financial income	603,635	540,652	62,983
Financial income (a)	1,397,658	1,210,661	186,997
Financial expenses from discounting of provisions	- 8	-12	4
Interest expense	-358,660	-438,484	79,824
Losses on derivative financial instruments	-73,662	-57,629	-16,033
Losses from measurement of financial instruments at amortised cost	-26,985	-18,269	-8,716
Financial expenses accounted for as an increase in financial liabilities	-2,932	-2,786	-146
Other	-133,375	-16,072	-117,303
of which non-recurring (1)	-120,677	-	-120,677
Other financial expenses	-595,614	-533,240	-62,374
Impairment losses on investments	-36,249	-29,934	-6,315
Impairment losses on financial assets	-	-14,177	14,177
Impairments of financial assets and investments	-36,249	-44,111	7,862
Financial expenses (b)	-631,871	-577,363	-54,508
Foreign exchange gains/(losses)(c)	470	398	7 2
Financial income/(expenses) (a+b+c)	766,257	633,696	132,561

(1) Details of non-recurring financial transactions are provided in note 5.10.

"Net financial income" is up €132,561 thousand, essentially due to:

• a) an increase in dividends received from the subsidiary, Aeroporti di Roma, amounting to €122,955 thousand;
• b) a reduction of €7,853 thousand in impairment losses on the investment in Compagnia Aerea Italiana. The balance reflects, in both comparative periods, impairment losses on the investment in the company (further details are provided in note 4.3 above) and, solely as regards 2014, the write-off of convertible bonds issued by the airline, amounting to €14,177 thousand, following the Company's formal decision to waive its rights under the convertible bonds in December 2014.

5.7 (Income tax (expense)/benefit -€2,499 thousand (-€4,897 thousand)

A comparison of the income tax expense and benefit for 2015 and the comparative period is shown in the following table.

€000	2015	2014	INCREASE/ (DECREASE)
IRES	-4,966	-4,378	-588
IRAP	-225	-705	480
Current tax expense	-5,191	-5,083	-108
Recovery of previous years' income taxes	1,846	8 2	1,764
Previous years' income taxes	-707	-257	-450
Differences on income tax for previous years	1,139	-175	1,314
Provisions	275	297	-22
Releases	-232	-121	-111
Changes in prior year estimates	-11	-5	-6
Deferred tax income	3 2	171	-139
Provisions	-136	-121	-15
Releases	-	311	-311
Changes in prior year estimates	1,657	-	1,657
Deferred tax expense	1,521	190	1,331
Income tax (expense)/benefit	-2,499	-4,897	2,398

Tax expense is down €2,398 thousand on 2014, essentially due to:

• a) the positive effects recognised in the Company's tax return in relation to taxation for previous years, amounting to €1,846 thousand;
• b) the positive impact of the reassessment of net deferred tax income and expense, amounting to €1,642 thousand, following the reduction in the IRES (corporation tax) rate from 2017, introduced by the 2016 Stability Law (Law 208/2015), as described in note 4.13 above. This refers almost entirely to the deferred taxation accounted for, during allocation of the purchase price calculated as part of the merger with Gemina, with effect from 1 December 2013, reflecting the irrelevance for tax purposes of the gain on the investment in Aeroporti di Roma.

The following table shows a reconciliation of the statutory rates of taxation and the effective charge for IRES for the year.

€000		2015
	Tax expense			Tax expense
	Taxable income	Tax	Tax rate	Taxable income	Tax	Tax rate
Profit/(Loss) before tax from continuing operations	735,908			612,137
IRES tax expense/(benefit) at statutory rate		202,375	27.50%		168,338	27.50%
Temporary differences deductible in future years	1,000	275	0.04%	1,076	296	0.05%
Temporary differences taxable in future years	-493	-136	-0.02%	-438 -	121	-0.02%
Reversal of temporary differences arising in previous years	-842	-232	-0.03%	573	158	0.03%
Tax free dividends	-754,322	-207,439	-28.19%	-641,808 -	176,497	-28.83%
Impairment losses on investments and financial assets	36,249	9,968	1.35%	44,111	12,131	1.98%
Other permanent differences	561	155	0.02%	279	73	0.01%
Taxable income assessable to IRES	18,061			15,930
Current IRES charge for the year		4,966	0.67%		4,378	0.72%
Current IRAP charge for the year		225	0.03%		705	0.12%
Current income tax expense		5,191	0.71%		5,083	0.83%

5.8 Profit/(Loss) from discontinued operations - (€78,977)

An analysis of the profit from discontinued operations is shown below. The balance, which in 2015 amounts to zero, in 2014 reflected the impact of the operating results of TowerCo and this company's sale.

€000	2015	2014	INCREASE/ (DECREASE)
Gain on sale of investment in TowerCo	-	74,500	-74,500
Tax expense	-	-1,024	1,024
After-tax gains on sale of investment in TowerCo	-	73,476	-73,476
Dividends declared by TowerCo	-	5,578	-5,578
Tax expense	-	-77	7 7
After-tax dividends declared by TowerCo	-	5,501	-5,501
Proft/(Loss) from discontinued operations	-	78,977	-78,977

5.9 Earnings per share

The following table shows the calculation of basic and diluted earnings per share with comparative amounts.

	2015	2014
Weighted average of shares outstanding	825,783,990	825,783,990
Weighted average of treasury shares in portfolio	-4,456,170	-12,765,737
Weighted average of shares outstanding for the calculation of basic earnings per share	821,327,820	813,018,253
Weighted average of diluted shares held under share-based incentive plans	1,381,762	1,145,986
Weighted average of all shares outstanding for the calculation of diluted earnings per share	822,709,582	814,164,239
Profit for the year (€000)	733,409	686,217
Basic earnings per share (€)	0.89	0.85
Diluted earnings per share (€)	0.89	0.85
Profit from continuing operations	733,409	607,240
Basic earnings per share from continuing operations (€)	0.89	0.75
Diluted earnings per share from continuing operations (€)	0.89	0.75
Profit from discontinued operations (€000)	-	78,977
Basic earnings/(losses) per share from discontinued operations (€)	-	0.10
Diluted earnings/(losses) per share from discontinued operations (€)	-	0.10

The weighted number of treasury shares held by the Group is down, reflecting both the sale of 9,741,513 shares in the market, as described in note 4.10 above, and the exercise and conversion of a number of options and units awarded under share-based incentive plans, as described in greater detail in note 7.3.

5.10 Material non-recurring transactions

During 2015, Atlantia proceeded with early redemption of a portion of bonds with a par value of €1,351,250 thousand, maturing in 2016, 2017, 2019 and 2020 (the total par value of the bonds in the issues amounts to €4,250,000 thousand). At the same time, Autostrade per l'Italia repaid matching loans with the same face value granted to this subsidiary.

This took place through two separate transactions:

• a) in February 2015, the redemption of bonds with a par value of €1,020,130 thousand, maturing in 2016, 2017 and 2019, via a Tender Offer. As a result of this transaction, the Company recognised non-recurring financial expenses of €82,115 thousand, corresponding to the premium paid to the bondholders, before tax of €26,972 thousand. At the same time, the Company recognised non-recurring financial income of €85,164 thousand, corresponding to the premium received from Autostrade per l'Italia, before tax of €28,164 thousand. The overall impact on the results for the year totals €1,858 thousand;
• b) in December 2015, the redemption of bonds with a par value of €331,120 thousand, maturing in 2017, 2019 and 2020, through their repurchase in the market via a Tender Offer conducted by Autostrade per

l'Italia, which at the same time transferred the securities to the Company (which then cancelled them). As a result of this transaction, the Company recognised non-recurring financial expenses of €38,562 thousand, corresponding to the premium paid, via Autostrade per l'Italia, to the bondholders, before tax of €12,667 thousand. At the same time, the Company recognised non-recurring financial income of €40,322 thousand, corresponding to the premium received from Autostrade per l'Italia, before tax of €13,334 thousand. The overall impact on the results for the year totals €1,092 thousand.

6 OTHER FINANCIAL INFORMATION

6.1 Notes to the statement of cash flows

Cash flows during 2015 resulted in a decrease of €47,842 thousand in cash and cash equivalents, versus a net cash outflow of €240,695 thousand in 2014.

Cash generated from operating activities amounts to €751,002 thousand, up €97,091 thousand on the figure for 2014 (€653,911 thousand). This essentially reflects dividends for 2014 declared by Aeroporti di Roma (€122,955 thousand), partially offset by the cash outflow following the payment on account of VAT, recovered in January 2016. The payment was made on behalf of the subsidiaries participating, from 2015, in the Group VAT arrangement, described above in note 4.8.

Cash generated from investing activities, totalling €1,053,152 thousand, primarily reflects the combined effect of the following:

• a) the receipt of cash, totalling €1,351,250 thousand, following the early repayment of loans to Autostrade per l'Italia;
• b) the investment of cash, totalling €346,885 thousand, in notes issued by Romulus Finance.
• Cash generated from investing activities in 2014, totalling €1,938,720 thousand, primarily reflected:
• a) repayment of the intercompany loan to the subsidiary, Autostrade per l'Italia, amounting to €2,094,200 thousand;
• b) the sale of the entire investment in TowerCo (a wholly owned subsidiary), previously accounted for at a carrying amount of €20,100 thousand, for a purchase consideration of €94,600 thousand;
• c) two new loans to Autostrade per l'Italia, totalling €200,000 thousand;
• d) the acquisition, for a total of €71,858 thousand, of controlling interests in Pavimental, Spea Ingegneria Europea and ADR Engineering (on 1 June 2015, the latter merged with and into Spea Ingegneria Europea, which changed its name to Spea Engineering) as part of a restructuring of the Atlantia Group's investments.

Cash used in financing activities, totalling €1,851,996 thousand, essentially reflects:

• a) the partial early redemption of bonds, totalling €1,351,250 thousand;
• b) payment to shareholders of the final dividend for 2014 (€366,300 thousand) and the interim dividend for 2015 (€329,339 thousand);
• c) proceeds from the sale of treasury shares, totalling €227,952 thousand.
• Cash used in financing activities in 2014, amounting to €2,833,326 thousand, reflected:
• a) the redemption of bonds with a par value of €2,094,200 thousand;
• b) new bond issues, amounting to €200,000 thousand;
• c) payment to shareholders of the interim dividend for 2013, totalling €288,596 thousand, and paid in January 2014, of the final dividend for 2013, totalling €317,862 thousand, and of the interim dividend for 2014, totalling €288,664 thousand.

The following table shows net cash flows generated in the two comparative periods from discontinued operations. The balance, amounting to zero in 2015, in 2014 related to the investment in TowerCo and consisted of dividends payable to the Company and the gain on the sale of the investment.

€000	2015	2014
Net cash generated from/(used in) operating activities	-	5,578
Net cash generated from/(used in) investing activities	-	94,600
Net cash generated from/(used in) financing activities	-	-

6.2 Financial risk management

Financial risk management objectives and policies

• In the normal course of business, the Company is exposed to:
• a) market risk, principally linked to the effect of movements in interest and foreign exchange rates on financial assets acquired and financial liabilities assumed;
• b) liquidity risk, with regard to ensuring the availability of sufficient financial resources to fund the Group's operating activities and repayment of the liabilities assumed;
• c) credit risk, linked to both ordinary trading relations and the likelihood of defaults by financial counterparties.

The Company's financial risk management strategy is derived from and consistent with the business goals set by the Board of Directors, as contained in the various long-term plans prepared each year.

Market risk

The adopted strategy for each type of risk aims to eliminate interest rate and currency risks and minimise borrowing costs, whilst taking account of stakeholders' interests, as defined in the Financial Policy as approved by the Board of Directors.

Management of these risks is based on prudence and best market practice.

The main objectives set out in this policy are as follows:

• a) to protect the scenario forming the basis of the long-term plan from the effect of exposure to currency and interest rate risks, identifying the best combination of fixed and floating rates;
• b) to pursue a potential reduction of the Group's borrowing costs within the risk limits determined by the Board of Directors;
• c) to manage derivative financial instruments taking account of their potential impact on the results of operations and financial position in relation to their classification and presentation.

The Company's derivative hedging instruments as at 31 December 2015 are classified as cash flow hedges in accordance with IAS 39.

Details of the fair value measurement of derivative financial instruments are provided in note 3. Amounts in foreign currencies other than the euro are translated at closing exchange rates communicated by

the European Central Bank.

The residual average term to maturity of debt as at 31 December 2015 is approximately 6 years and 6 months. The average cost of medium to long-term debt for 2015 was 4.4%.

Monitoring is, moreover, intended to assess, on a continuing basis, counterparty creditworthiness and the degree of risk concentration.

Interest rate risk

Interest rate risk is linked to uncertainty regarding the performance of interest rates, and takes two forms:

• a) cash flow risk: this is linked to financial assets and liabilities with cash flows indexed to a market interest rate. In order to reduce floating rate debt, the Company has entered into interest rate swaps (IRS), classified as cash flow hedges. The hedging instruments and the underlying financial liabilities have matching terms to maturity and notional amounts. Following tests of effectiveness, changes in fair value were recognised in full in comprehensive income, with no recognition of any ineffective portion in the income statement. Interest income or expense deriving from the hedged instruments is recognised simultaneously in the income statement;
• b) fair value risk: this represents the risk of losses deriving from an unexpected change in the value a financial asset or liability following an unfavourable shift in the market interest rate curve. As at 31 December 2015, the Company has not entered into derivatives classified as fair value hedges.
• All debt is fixed rate.

Currency risk

Currency risk is mainly incurred through the assumption of financial liabilities denominated in a currency other than the Group's currency of account.

12% of the Company's medium/long-term debt is nominally denominated in currencies other than the euro. Taking account of foreign exchange hedges, the percentage of foreign currency debt exposed to currency risk on translation into euros is zero. Cross currency swaps (CCIRS) with notional amounts and maturities matching those of the underlying financial liabilities were entered into specifically to eliminate the interest and currency risk to which the sterling and yen denominated bonds are exposed.

Following Atlantia's repurchase of 99.87% of the sterling-denominated notes, issued by Romulus Finance (the special purpose entity controlled by Aeroporti di Roma), the Company entered into Cross Currency Swaps with notional amounts and maturities matching those of the underlying financial asset in order to hedge the interest and currency risk to which the underlying foreign currency asset is exposed.

These swaps also qualify as cash flow hedges. Following tests of effectiveness, changes in fair value were primarily recognised in other comprehensive income, whilst an ineffective portion with a negative value (€1,445 thousand) was recognised in profit or loss. This is connected to the impact of the application of IFRS 13 to the new derivatives relating to the above investment of cash in the notes issued by Romulus Finance.

The following table summarises outstanding derivative financial instruments at 31 December 2015 (compared with 31 December 2014) and shows the corresponding market value.

€000		31 December 2015		31 December 2014
Type	Purpose of hedge	Fair value asset/(liability)	Notional amount	Fair value asset/(liability)	Notional amount
Cash flow hedges (1)
Cross Currency Swaps (2)	Currency and interest rate risk	-208,455	1,185,858	-279,451	899,176
Interest Rate Swaps	Interest rate risk	216,123	750,000	245,232	750,000
Cash flow hedges (1)		7,668	1,935,858	-34,219	1,649,176
of which
	fair value (asset)	216,686		245,232
	fair value (liability)	-209,018		-279,451

(1) The fair value of cash flow hedges excludes accruals at the measurement date.

(2) As at 31 December 2015, this amount is shown after fair value gains of €56.3 thousand linked to the derivatives entered into, in January 2015, to hedge the interest rate and currency risk resulting from the repurchase of 99.87% of the notes issued by Romulus Finance in pounds sterling.

Sensitivity analysis

Sensitivity analysis describes the impact that the interest rate and foreign exchange movements to which the Company is exposed would have had on the income statement for 2015 and on equity as at 31 December 2015. The interest rate sensitivity analysis is based on the exposure of derivative and non-derivative financial instruments at the end of the reporting period, assuming, in terms of the impact on the income statement, a 0.10% (10 bps) shift in the interest rate curve at the beginning of the year, whilst, with regard to the impact of changes in fair value on other comprehensive income, the 10 bps shift in the curve was assumed to have occurred at the measurement date. The following outcomes resulted from the analysis carried out:

• a) in terms of interest rate risk, an unexpected and unfavourable 10 bps shift in market interest rates would have resulted in a negative impact on the income statement, totalling €225 thousand, and on other comprehensive income, totalling €4,844 thousand, before the related taxation;
• b) in terms of currency risk, an unexpected and unfavourable 10% shift in the exchange rate would have had no impact on the income statement.

Liquidity risk

Liquidity risk relates to the risk that cash resources may be insufficient to fund the payment of liabilities as they fall due. The Company believes that its ability to generate cash, the ample diversification of its sources of funding and the availability of uncommitted lines of credit provides access to sufficient sources of finance to meet its projected financial needs.

The following tables show the time distributions of financial liabilities by term to maturity as at 31 December 2015 and comparable figures as at 31 December 2014, excluding accrued expenses at these dates.

€000		31 December 2015
	Carrying amount	Total contractual flows	Within 12 months	Between 1 and 2 years	Between 3 and 5 years	After 5 years
Non-derivative financial liabilities
Bond 2004-2022 (GBP)	-680,876	-979,290	-42,578	-42,578	-127,733	-766,401
Bond 2004-2024	-993,239	-1,528,750	-58,750	-58,750	-176,250	-1,235,000
Bond 2009-2016	-882,489	-929,999	-929,999	-	-	-
Bond 2009-2038 (JPY)	-152,014	-248,402	-4,166	-4,166	-12,497	-227,573
Bond 2010-2017	-595,691	-635,546	-20,093	-615,453	-	-
Bond 2010-2025	-495,786	-718,750	-21,875	-21,875	-65,625	-609,375
Bond 2012-2019	-758,353	-879,369	-33,535	-33,535	-812,299	-
Bond 2012-2020	-653,121	-774,139	-27,790	-27,790	-718,559	-
Bond 2012-2032	-35,000	-63,560	-1,680	-1,680	-5,040	-55,160
Zero Coupon Bond 2012-2032	-58,858	-135,000	-	-	-	-135,000
Retail bond 2012-2018	-983,517	-1,108,750	-36,250	-36,250	-1,036,250	-
Bond 2013-2033	-72,489	-125,664	-2,820	-2,813	-8,445	-111,586
Bond 2013-2021	-742,979	-879,495	-21,622	-21,563	-64,747	-771,563
Bond 2014-2034	-123,699	-201,961	-4,050	-4,050	-12,150	-181,711
Bond 2014-2038	-72,514	-137,544	-2,719	-2,719	-8,157	-123,949
Total bond issues	-7,300,625	-9,346,219	-1,207,927	-873,222	-3,047,752	-4,217,318

Derivative liabilities
Cross Currency Swaps (1)	-209,018	-175,222	-7,032	-6,820	-20,651	-140,719
Total derivative liabilities	-209,018	-175,222	-7,032	-6,820	-20,651	-140,719

€000				31 December 2014
	Carrying amount	Total contractual flows	Within 12 months	Between 1 and 2 years	Between 3 and 5 years	After 5 years
Non-derivative financial liabilities
Bond 2004-2022 (GBP)	-641,516	-962,897	-40,121	-40,121	-120,362	-762,293
Bond 2004-2024	-992,637	-1,587,500	-58,750	-58,750	-176,250	-1,293,750
Bond 2009-2016	-1,513,568	-1,668,750	-84,375	-1,584,375
Bond 2009-2038 (JPY)	-137,123	-227,943	-3,760	-3,760	-11,279	-209,144
Bond 2010-2017	-995,898	-1,101,250	-33,750	-33,750	-1,033,750	-
Bond 2010-2025	-495,445	-740,625	-21,875	-21,875	-65,625	-631,250
Bond 2012-2019	-990,578	-1,225,000	-45,000	-45,000	-1,135,000	-
Bond 2012-2020	-744,926	-946,877	-32,813	-32,813	-98,438	-782,813
Bond 2012-2032	-35,000	-65,240	-1,680 -1,680		-5,040	-56,840
Zero Coupon Bond 2012-2032	-54,023	-135,000 - -		-	-135,000
Retail bond 2012-2018	-978,748	-1,145,000 -36,250 -36,250		-1,072,500	-
Bond 2013-2033	-72,391	-128,477	-2,813 -2,820		-8,438	-114,406
Bond 2013-2021	-741,776	-901,057	-21,563 -21,622		-64,688	-793,184
Bond 2014-2034	-123,514	-206,011	-4,050 -4,050		-12,150	-185,761
Bond 2014-2038	-72,443	-140,988	-3,449	-2,719	-8,156	-126,664
Total bond issues	-8,589,586	-11,182,615	-390,249	-1,889,585	-3,811,676	-5,091,105
Derivative liabilities
Cross Currency Swaps (1)	-279,451	-265,661	-9,705	-9,896	-29,197	-216,863
Total derivative liabilities	-279,451	-265,661	-9,705	-9,896	-29,197	-216,863

(1) Future cash flows deriving from cross currency swap (CCS) differentials are calculated on the basis of the closing exchange rate at the measurement date.

The amounts in the above tables include interest payments and exclude the impact of any offset agreements. The time distribution of terms to maturity is based on the residual contract term or on the earliest date on which repayment of the liability may be required, unless a better estimate is available.

The distribution for transactions with amortisation schedules is based on the date on which each instalment falls due.

The following table shows the time distribution of expected cash flows from cash flow hedges, and the periods in which they will be recognised in profit or loss.

€000			31 December 2015						31 December 2014
	Carrying amount	Expected cash flows ( 1)	Within 12 months	Between 1 and 2 years	Between 3 and 5 years	After 5 years	Carrying amount	Expected cash flows ( 1)	Within 12 months	Between 1 and 2 years	Between 3 and 5 years	After 5 years
Interest rate swaps
Assets	216,123	237,868	38,761	38,103	100,682	60,322	245,232	266,880	37,070	36,583	101,315	91,912
Cross currency swaps
Assets	563	16,563	-		- -	16,563		-	-	-	-	-
Liabilities	-209,018	-227,111	-10,662	-10,893	-35,607	-169,949	-279,451	-282,763	-9,575	-10,032	-31,195	-231,961
Total cash flow hedges	7,668						-34,219
Accrued expenses on cash flow hedges	-26,577						-26,055
Accrued income on cash flow hedges	46,229						44,391
Total cash flow hedge derivative assets/liabilities	27,320	27,320	28,099	27,210	65,075	-93,064	-15,883	-15,883	27,495	26,551		70,120 -140,049
€000			31 December 2015						31 December 2014
		Expected cash flows ( 1)	Within 12 months	Between 1 and 2 years	Between 3 and 5 years	After 5 years		Expected cash flows ( 1)	Within 12 months	Between 1 and 2 years	Between 3 and 5 years	After 5 years
Interest rate swaps
Income from cash flow hedges		216,123	21,669	37,575	100,561	56,318		245,232	19,964		36,516 100,957	87,795
Losses on cash flow hedges
Cross currency swaps
Income from cash flow hedges		1,447,912	58,664	58,060		168,819 1,162,369		1,063,184	21,482	65,765	127,769	848,168
Losses on cash flow hedges		-1,656,367	-69,616	-69,356		-205,488 -1,311,907		-1,342,635	-27,982	-79,245		-159,751 -1,075,657
Total income (losses) from cash flow hedges		7,668	10,717	26,279	63,892	-93,220		-34,219	13,464	23,036		68,975 -139,694
(1) Expected cash flows from swap differentials are calculated on the basis of market curves at the measurement date.

Credit risk

The Company manages credit risk essentially through recourse to counterparties with high credit ratings and does not report significant credit risk concentrations in accordance with the Financial Policy.

Credit risk deriving from outstanding derivative financial instruments can also be considered marginal in that the counterparties involved are major financial institutions.

Provisions for impairment losses on individually material items are established when there is objective evidence that the Group will not be able to collect all or any of the amount due. The amount of the provisions takes account of estimated future cash flows and the date of collection, any future recovery costs and expenses, and the value of any security and guarantee deposits received from customers. General provisions, based on the available historical and statistical data, are established for items for which specific provisions have not been made.

OTHER INFORMATION

7.1 Guarantees

As at 31 December 2015, the Company reports the following outstanding personal and collateral guarantees in issue, which include the following material items:

• a) in favour of the European Investment Bank as security for loans granted to the subsidiary (€2,073,010 thousand, equal to 120% of the underlying liability);
• b) counter-indemnities issued on behalf of the subsidiary, Electronic Transaction Consultants Corporation, to the insurance companies which have issued performance bonds totalling €107,779 thousand (at the euro/US dollar exchange rate as at 31 December 2015), for free-flow tolling projects being carried out by the subsidiary;
• c) the guarantee issued in favour of credit institutions on behalf of Strada dei Parchi as a safeguard against the impact on cash flow hedges of movements in interest rates. The amount of the guarantee, based on the fair value of the hedges, has been capped at €40,000 thousand, which corresponds to the value as at 31 December 2015. This guarantee was renewed for a further 12 months in February 2016. The guarantee can only be enforced if the concession held by Strada dei Parchi is terminated, whilst Atlantia has received a counter-indemnity from Toto Holding (Strada dei Parchi's majority shareholder), which has undertaken to assume Atlantia's guarantee obligations by 31 October 2016;
• d) a portion of the Company's holding of shares in Pune Solapur Expressways Private Ltd. pledged to credit institutions.

7.2 Related party transactions

The principal related party transactions between the Company and its related parties are described below. The transactions have been identified based on the criteria set out in the Procedure for Related Party Transactions adopted by the Company in implementation of the provisions of art. 2391bis of the Italian Civil Code, the Regulations adopted by the Commissione Nazionale per le Società e la Borsa (the CONSOB) in Resolution 17221 of 12 March 2010, as amended. This procedure, published in the section, "Articles of Association, codes and procedures" on the Company's website at www.atlantia.it, establishes the criteria to be used in identifying related parties, in distinguishing between transactions of greater and lesser significance and in applying the rules governing the above transactions of greater and lesser significance, and in fulfilling the related reporting requirements.

The following table shows amounts in the income statement and statement of financial position generated by related party transactions, broken down by nature of the transaction (trading or financial) and including those with Directors, Statutory Auditors and the Company's key management personnel.

140 140 - - 732 28 101 538 639 6,574 6,574 6,935 144 5 149 - - - 456 2,002 2,002 81 343 424 5,235 5,235 6,741 -41 -332 - 2 -714 - 7 -24 - 3 -42 -405 -13 -13 -54 -1,064 -316 - 3 - 5 -12 - 3 -26 -1,027 -42 -42 Total 748 - - - - - - - - - - - - - - - - - - - - - - 288 - - - - - - - - - - - - - - - - - - 748 - - 288 288 697 5 1 Lease expense -13 -58 -2 -4 -7 -24 -3 -42 -13 -54 -6 -317 -3 -5 -12 -3 -26 -42 -42 -3,358 -3,149 -2,723 Trading and other expenses 140 140 - - 18 101 538 639 6,574 6,574 144 5 149 - - - - - 81 343 424 5,235 5,235 2,617 -2,471 -765 3,982 Staff costs Expenses (2) - - - - - - 736 - - 10 - - - - - - - - - - - - - 1,364 - - 462 1 - - - - - - - 2,002 - - - - - 2,188 - - 2,188 1,827 2,002 3,829 1,442 Service costs 2014 2015 - - 17 - - - - - - - - - - 17 - - - - - - 17 - - - - - 7 - - - - - - - - - 7 - - - - - - - - - 7 Raw and consumable materials 1,266 162 - - - - - - - 553 - - - - 1,981 21 21 - - - - - 2,002 - - - - - 152 - - - 206 554 - - - - 912 5 5 - - - - - - - 917 Total Trading and other income Income 553 - - - - - - - - - - - 21 - - - - - - - - - - 152 - - - 206 554 - - - - 5 - - - - - - - 1,981 21 2,002 912 5 917 1,266 162 Other operating income (2) 108 435 9 8 - - 3,095 - - - 567 - 182 - - 28,107 - - 30 461 491 5,313 5,313 33,911 - - - 3,167 1,729 1,762 - - 671 13,545 1,305 3,663 1,055 1,270 28,602 98 - - 37 231 268 2,985 2,985 31,953 12,791 11,364 Total - - - - - - - - - 155 - - - - - 30 461 2,189 - - - - - - - - - 12,126 - - - - - - - - 37 231 2,985 11,153 491 2,189 13,833 12,285 268 2,985 15,538 Current tax liabilities Other current liabilities 10,998 159 10,321 108 9 8 Trading and other liabilities - - 3,095 - - - 255 - - - - - - - - - - - - - - - 3,167 1,729 - - - 671 1,127 1,305 3,663 1,055 1,270 98 - - - - - - - 13,779 13,779 14,263 14,361 276 Liabilities 201 - - - - - - 312 - 27 - - - 3,010 - - - - - - - 3,010 - - - - - 1,762 - - - 90 - - - - - 1,852 - - - - - - - - - 1,852 2,470 Trade payables 3,124 - - - - - - - - - - - - - - - - - - - - - - - - - - - 202 - - - - - - - - - - - - - - 165 3,124 3,289 202 202 165 31 December 2015 31 December 2014 Other non-current liabilities 3,632 28,715 239 553 - - 21 931 4 - 1,989 764 2,436 3,048 59,936 - - - - - - - 59,936 - - - 26 47 22,977 1,300 2 - 580 3 5 12 - 25,505 - - - - - - - - - 25,505 18,157 Total - - 21 - 4 - - - - - - - - - - - - - - - 26 - - - 2 - 15 - - - - - - - - - - - - - 27,032 27,032 95 95 25,781 1,138 1 5 7 3 5 2 Other current assets Trading and other assets Assets 1,982 2,418 - - - - 931 - - 764 3,048 28,855 - - - - - - - 28,855 - - - - - 21,069 - - - - - - - - 21,562 - - - - - - - - - 21,562 2,460 17,094 158 493 Current tax assets 2,934 - - - - - - - - 4,049 - - - - - - - 4,049 - - - - 47 1,908 1,300 - - 565 3 5 12 - 3,848 - - - - - - - - - 3,848 3 4 1,048 7 1 8 8 8 Trade receivables Key management personnel (3) Key management personnel (3) United Colors Communication EsseDiEsse Società di Servizi EsseDiEsse Società di Servizi Total Key management Total Key management Autostrade dell'Atlantico Aeroporti di Roma group Autostrade dell'Atlantico Aeroporti di Roma group Total pension funds Total pension funds Autostrade Meridionali Autostrade Meridionali Electronic Transaction Electronic Transaction Tangenziale di Napoli Other subsidiaries (1) Tangenziale di Napoli Other subsidiaries (1) Autostrade per l'Italia Total subsidiaries Autostrade per l'Italia Total subsidiaries CAPIDI pension fund CAPIDI pension fund Total associates Total associates ASTRI pension fund ASTRI pension fund Spea Engineering Spea Engineering Total affiliates Autostrade Tech Total parents Total parents Consultants Co Consultants Co Associates (1) Associates (1) Pavimental personnel Pavimental personnel Ecomouv Telepass Telepass Edizione Edizione Sintonia Total Total	€000					Principal trading transactions with related parties

(3) Atlantia's "key management personnel" means the Company's Directors, Statutory Auditors and other key management personnel as a whole. Expenses for each period include emoluments, salaries, benefits in kind, bonuses and other incentives (including the fair value of Atlantia share-based incentive plans). (2) "Staff costs" include cost recoveries.

In addition to the information shown in the table, the consolidated financial statements also include contributions of €1,438 thousand in 2015 paid on behalf of Directors, Statutory Auditors and other key management personnel (€619 thousand in 2014) and the related liabilities of €348 thousand as at 31 December 2015 (81 thousand as at 31 December 2014).

289

equivalents Cash Non-current derivative assets Other non financial current €000		Principal financial transactions with related parties
	Assets					Income		Expenses
	Financial assets					Financial income		Financial expenses
assets	Current portion medium/long term loans of Intercompany receivables due from account current	Other current financial assets	Total	Other current liabilities financial	Total	Other financial income (1)	Total	Other financial expenses (1)	Total
related parties							2015
400,000 216,123 6,514,603 Autostrade per l'Italia	31 December 2015 1,076,587 13,329	794	8,221,436	-	-	1,184,282	1,184,282	25,092	25,092
- - - Autostrade Tech	-	- -	-	-	-	7	7	-
- - - Ecomouv	-	3 -	3	-	-	788	788	-
- - - Electronic Transaction Consultants Co	-	5,923 -	5,923	-	-	1,110	1,110	-
- - 346,262 Aeroporti di Roma group	522 -	-	346,784	-	-	137,955	137,955	6,502	6,502
- - - Other subsidiaries (2)	-	100 -	100	-	-	5	5	-
400,000 216,123 6,860,865 TOTAL SUBSIDIARIES	1,077,109 13,329	6,820	8,574,246	-	-	1,324,147	1,324,147	31,594	31,594
	31 December 2014						2014
250,000 245,232 8,757,890 Autostrade per l'Italia	236,649 212,946	3,531	9,706,248	5	5	1,151,798	1,151,798	26,953	26,953
- - - Ecomouv	-	3 -	3	-	-	2,933	2,933	-
- - - Electronic Transaction Consultants Co	-	4,485 -	4,485	332	332	1,427	1,427	-
- - - Other subsidiaries (2)	-	19 -	19	-	-	50	50	-
250,000 245,232 8,757,890 TOTAL SUBSIDIARIES	236,649 212,946	8,038	9,710,755	337	337	1,156,208	1,156,208	26,953	26,953

A number of material non-recurring transactions were carried out in 2015, as described in detail in note 5.10, whilst no atypical or unusual transactions, having a material impact on the income statement and statement of financial position, were entered into, either with third or related parties.

The principal transactions entered into with related parties are described below.

Atlantia SpA's relations with its subsidiaries

The Company primarily engages in transactions of a trading and financial nature with the subsidiary, Autostrade per l'Italia, over which it exercises management and coordination.

With regard to transactions of a trading nature, Autostrade per l'Italia provides administrative, financial and tax services to the Company.

With regard to transactions of a financial nature with Autostrade per l'Italia, as reported in note 4.4, as at 31 December 2015 the Company has granted medium/long-term loans with a total face value of €7,406,526 thousand to Autostrade per l'Italia on the same terms as those applied to Atlantia's borrowings, increased by a spread that takes account of the cost of managing the loans. The reduction of €1,351,250 thousand in these loans, compared with 31 December 2014, relates to the partial buyback of bonds maturing in 2016, 2017, 2019 and 2020, as described in note 5.10.

The floating rate loan 2004-2022, with a face value of €750,000 thousand, is hedged against interest rate risk through the use of specific derivative financial instruments entered into with Autostrade per l'Italia. Fair value gains on these hedges total €216,123 thousand as at 31 December 2015, as reported in note 4.4. The Company also has an intercompany current account with Autostrade per l'Italia, which provides centralised treasury services for the Group. The account has a credit balance of €13,329 thousand as at 31 December 2015. In addition, the Company has invested liquidity of €400,000 with the subsidiary (€200,000 thousand maturing 29 January 2016 and the remaining €200,000 thousand maturing on 29 February 2016), as described in note 4.7.

As regards transactions with other Group companies, the Company holds notes issued by Romulus Finance (the special purpose entity controlled by Aeroporti di Roma), amounting to €346,262 thousand as at 31 December 2015, as described in note 4.4.

With regard, on the other hand, to other liabilities, the Company owes the sum of €10,998 thousand to Aeroporti di Roma and its subsidiaries, essentially in relation to the tax consolidation arrangement in force between these companies and Gemina prior to this company's merger with the Company, as described in note 4.16.

As at 31 December 2015, the Company has issued a number of guarantees in favour of direct or indirect subsidiaries, as described in note 7.1.

Finally, as a result of the tax consolidation arrangement headed by the Company, the statement of financial position as at 31 December 2015 includes current tax assets due from Group companies of €28,855 thousand, and current tax liabilities payable to Group companies of €13,779 thousand, which mirror matching amounts due to and from the tax authorities. The arrangement is described in note 4.8.

Disclosures regarding share-based payments

There were no changes, during 2015, in the share-based incentive plans already adopted by the Group as at 31 December 2014 and originally approved by the Annual General Meetings of shareholders held on 20 April 2011 (later amended by subsequent Annual General Meetings) and 16 April 2014.

Details of each plan are contained in specific information circulars prepared pursuant to art. 84-bis of CONSOB Regulation 11971/1999, as amended, and in the Remuneration Report prepared pursuant to art. 123 ter of the Consolidated Finance Act. These documents, to which reference should be made, are published in the "Remuneration" section of the Company's website at www.atlantia.it.

The following table shows the main aspects of existing incentive plans as at 31 December 2015, including the options and units awarded to directors and employees of the Group and changes during 2015 (in terms of new awards and the exercise, conversion or lapse of rights). The table also shows the fair value (at the grant date) of each option or unit awarded, as determined by a specially appointed expert, using the Monte Carlo model and other assumptions. The amounts have been adjusted for the amendments to the plans originally approved, which were required to ensure plan benefits remained substantially unchanged despite the dilution caused by the bonus issues approved by the shareholders on 20 April 2011 and 24 April 2012.

	Number of options/units awarded	Vesting date	Exercise / Grant date	Exercise price (€)	Fair value of each option or unit at grant date (€)	Expected expiration at grant date (years)	Risk free interest rate used	Expected volatility (based on historic mean)	Expected dividends at grant date
2011 SHARE OPTION PLAN
Options outstanding as at 1 January 2015
- 13 May 2011 grant	279,860		13 May 2014 14 May 2017	14.78	3.48	3.0 - 6.0	2.60%	25.2%	4.09%
- 14 October 2011 grant	13,991		13 May 2014 14 May 2017	14.78	(*)	(*)	(*)	(*)	(*)
- 14 June 2012 grant	14,692		13 May 2014 14 May 2017	14.78	(*)	(*)	(*)	(*)	(*)
	345,887		14 June 2015 14 June 2018	9.66	2.21	3.0 - 6.0	1.39%	28.0%	5.05%
- 8 November 2013 grant - 13 May 2014 grant	1,592,367 173,762	8 Nov 2016 N/A (**)	9 Nov 2019 14 May 2017	16.02 N/A	2.65 (**)	3.0 - 6.0 (**)	0.86% (**)	29.5% (**)	5.62% (**)
- options exercised in 2014	-209,525
- options lapsed in 2014	-43,557
	2,167,477
Changes in options in 2015
- 15 June 2015 grant - options exercised	52,359 -459,762	N/A (**)	14 June 2018	N/A	(**)	(**)	(**)	(**)	(**)
- options lapsed	-142,172
Options outstanding as at 31 December 2015	1,617,902
2011 SHARE GRANT PLAN
Units outstanding as at 1 January 2015
- 13 May 2011 grant	192,376		13 May 2014 14 May 2016	N/A	12.90	4.0 - 5.0	2.45%	26.3%	4.09%
- 14 October 2011 grant	9,618		13 May 2014 14 May 2016	N/A	(*)	(*)	(*)	(*)	(*)
- 15 June 2012 grant	10,106		13 May 2014 14 May 2016	N/A	(*)	(*)	(*)	(*)	(*)
	348,394		14 June 2015 15 June 2017	N/A	7.12	4.0 - 5.0	1.12%	29.9%	5.05%
- 8 November 2013 grant - units lapsed in 2014	209,420 -19,683	8 Nov 2016	9 Nov 2018	N/A	11.87	4.0 - 5.0	0.69%	28.5%	5.62%
	750,231
Changes in units in 2015
- units converted into "shares" on 15 May 2015	-97,439
- units lapsed	-28,699
Units outstanding as at 31 December 2015	624,093
MBO SHARE GRANT PLAN
Units outstanding as at 1 January 2015 - 14 May 2012 grant	96,282		14 May 2015 14 May 2015	N/A	13.81	3.0	0.53%	27.2%	4.55%
- 14 June 2012 grant	4,814		14 May 2015 14 May 2015	N/A	(*)	(*)	(*)	(*)	(*)
- 2 May 2013 grant	41,077	2 May 2016	2 May 2016	N/A	17.49	3.0	0.18%	27.8%	5.38%
- 8 May 2013 grant	49,446	8 May 2016	8 May 2016	N/A	18.42	3.0	0.20%	27.8%	5.38%
- 12 May 2014 grant	61,627		12 May 2017 12 May 2017	N/A	25.07	3.0	0.34%	28.2%	5.47%
	253,246
Changes in units in 2015 - units converted into "shares" on 14 May 2015	-101,096
Units outstanding as at 31 December 2015	152,150
() Options and units awarded as a result of Atlantia's bonus issues which, therefore, do not represent the award of new benefits. (*) These are phantom share options granted in place of certain conditional rights included in the grants of 2011 and 2012, and which, therefore, do not represent the award of new benefits.
2011 Share Option Plan
Description
As approved by the Annual General Meeting of shareholders on 20 April 2011, and amended by the Annual
General Meeting of shareholders on 30 April 2013 and 16 April 2014, the 2011 Share Option Plan entails the
award of up to 2,500,000 options free of charge in three annual award cycles (2011, 2012 and 2013). Each
option will grant beneficiaries the right to purchase one ordinary Atlantia share held in treasury, with
settlement involving either physical delivery or, at the beneficiary's option, a cash payment equivalent to the
proceeds from the sale of the shares on the stock exchange organised and managed by Borsa Italiana SpA, after

2011 Share Option Plan

Description

deduction of the full exercise price. The exercise price is equivalent to the average of the official prices of Atlantia's ordinary shares in the month prior to the date on which Atlantia's Board of Directors announces the beneficiary and the number of options to be awarded.

The options granted will vest in accordance with the Plan terms and conditions and, in particular, only if, on expiration of the vesting period (three years from the date of award of the options to beneficiaries by the Board of Directors), cumulative FFO for the three annual reporting periods preceding expiration of the vesting period, adjusted for a number of specific items (total operating cash flow of the Group, Atlania or of certain of its subsidiaries – depending on the role held by the various beneficiaries of the Plan), is higher than a preestablished target, unless otherwise decided by the Board of Directors, which has the authority to assign beneficiaries further targets. Vested options may be exercised, in part, from the first day following expiration of the vesting period and, in part, from the end of the first year following expiration of the vesting period and, in any event, in the three years following expiration of the vesting period (subject to the clause in the Plan terms and conditions requiring executive Directors and key management personnel to retain a minimum holding). The maximum number of exercisable options will be calculated on the basis of a mathematical algorithm (which could result in an assignment of some "additional" options) that takes account, among other things, of the current value and the exercise price, plus any dividends paid, so as to cap the realisable gain.

Changes in options in 2015

The vesting period for the second award cycle expired on 14 June 2015. In accordance with the Terms and Conditions of this plan, following confirmation of effective achievement of the related performance hurdles, the final value of the shares (the arithmetic mean of the share price in the fifteen days prior to the vesting date) was determined as well as the additional options resulting from dividends paid during the vesting period. On 8 May 2015, Atlantia's Board of Directors, exercising the authority provided for in the Plan Terms and Conditions, awarded the plan beneficiaries, in place of these additional options, a matching amount of phantom options in such a way that, on exercising the awarded options, the beneficiaries receive a gross amount in cash, determined with a calculation method which allow the beneficiaries to receive a net amount equal to what would have been received if they had exercised the additional options (resulting in the award of shares in Atlantia and payment of the exercise price) and sold the underlying shares in the market. On expiry of the vesting period, this resulted in the award of a total of 52,359 phantom options for the second cycle of the plan. For the reasons given above, the options awarded do not constitute an additional benefit with respect to the benefits established in the Plan Terms and Conditions.

During 2015, a number of beneficiaries exercised vested options and paid the established exercise price. This entailed the allocation to them of Atlantia's ordinary shares held by the Company as treasury shares. This resulted in the transfer of:

• a) 99,018 of Atlantia's ordinary shares to beneficiaries in connection with the first cycle, the vesting period for which expired on 13 May 2014, accompanied by the exercise of 173,762 phantom options awarded in 2014; following the exercise of these options, the first cycle of the Plan has for all purposes concluded;
• b) 186,982 of Atlantia's ordinary shares to beneficiaries in connection with the second cycle, the vesting period for which expired on 14 June 2015, whilst no phantom options awarded in 2015 were exercised.

Thus, as at 31 December 2015, taking into account lapsed options at that date, the remaining options outstanding total 1,617,902, including 52,359 phantom options awarded under the second cycle (the unit fair values of which, as at 31 December 2015, was measured as €21.29, in place of the unit fair values at the grant date).

2011 Share Grant Plan

Description

As approved by the Annual General Meeting of shareholders on 20 April 2011, and amended by the Annual General Meeting of shareholders on 30 April 2013, the 2011 Share Grant Plan entails the grant of up to 920,000 units free of charge in three annual award cycles (2011, 2012 and 2013). Each unit will grant beneficiaries the right to receive one Atlantia ordinary share held in treasury, with settlement involving either physical delivery or, at the beneficiary's option, a cash payment equivalent to the proceeds from the sale of the shares on the stock exchange organised and managed by Borsa Italiana SpA.

The units granted will vest in accordance with the Plan terms and conditions and, in particular, only if, on expiration of the vesting period (three years from the date the units are granted to beneficiaries by the Board of Directors), cumulative FFO for the three annual reporting periods preceding expiration of the vesting period, adjusted for a number of specific items (total operating cash flow of the Group, Atlantia or of certain of its subsidiaries – depending on the role held by the various beneficiaries of the Plan) is higher than a preestablished target, unless otherwise decided by the Board of Directors. Vested units may be converted into shares, in part, after one year from the date of expiration of the vesting period and, in part, after two years from the date of expiration of the vesting period (subject to the clause in the Plan terms and conditions requiring executive Directors and key management personnel to maintain a minimum holding). The number of convertible units will be calculated on the basis of a mathematical algorithm that takes account, among other things, of the current value and initial value of the shares so as to cap the realisable gain.

Changes in units in 2015

The vesting period for the second award cycle expired on 14 June 2015. In accordance with the Terms and Conditions of this plan, following confirmation of effective achievement of the related performance hurdles, the units previously awarded vested: these units may be converted into Atlantia's ordinary shares from 15 June 2016.

In addition, with regard to the first award cycle, the vesting period for which expired on 13 May 2014, on 15 May 2015 vested units were converted, in accordance with the Plan Terms and Conditions, into Atlantia's ordinary shares. As a result, Plan beneficiaries received 97,439 shares held by the Company as treasury shares. The remaining units will be converted into Atlantia's ordinary shares from 15 May 2016.

As at 31 December 2015, taking into account lapsed units at that date, the remaining units outstanding total 624,093.

MBO Share Grant Plan

Description

As approved by the Annual General Meetings of shareholders on 20 April 2011 and amended by the Annual General Meetings of 30 April 2013 and 16 April 2014, the MBO Share Grant Plan, serving as part payment of the annual bonus for the achievement of objectives assigned to each beneficiary under the Management by Objectives (MBO) plan adopted by the Atlantia Group in 2011, 2012 and 2013, entails the grant of up to 340,000 units free of charge annually for three years (2012, 2013 and 2014). Each unit will grant beneficiaries the right to receive one ordinary share in Atlantia SpA held in treasury.

The units granted (the number of which is based on the unit price of the company's shares at the time of payment of the bonus, and on the size of the bonus effectively awarded on the basis of achievement of the assigned objectives) will vest in accordance with the Plan terms and conditions, on expiration of the vesting period (three years from the date of payment of the annual bonus to beneficiaries, following confirmation that the objectives assigned have been achieved). Vested units will be converted into a maximum number of shares on expiration of the vesting period (subject to the clause in the Plan terms and conditions requiring executive Directors and key management personnel to maintain a minimum holding), on the basis of a mathematical algorithm (which could result in an assignment of some "additional" options) that takes account, among other things, of the current value and initial value of the shares, plus any dividends paid during the vesting period, so as to cap the realisable gain.

Changes in the units in 2015

The vesting period for the MBO Plan units awarded in relation to the objectives for 2011 expired on 14 May 2015. In accordance with the Terms and Conditions of this plan, all the units awarded thus vested, resulting in their conversion into Atlantia's ordinary shares and the allocation to beneficiaries of 101,096 shares held by the Company as treasury shares.

In addition, on 8 May 2015, Atlantia's Board of Directors, exercising the authority provided for in the Plan Terms and Conditions, awarded the plan beneficiaries a gross amount in cash in place of the additional units to be awarded as a result of the payment of dividends during the vesting period. This amount is computed in such a way as to enable beneficiaries to receive a net amount equal to what they would have received in case they had been awarded a number of Atlantia shares equal to the additional units and sold these shares in the market. Following the conversion of these units, there are no remaining units outstanding in relation to the awards for 2012.

As at 31 December 2015, the remaining units outstanding total 152,150.

The following table shows the main aspects of the "2014 Phantom Share Option Plan", unlike the other plans settled entirely in cash. The table shows the options awarded to directors and employees of the Company and changes (in terms of new awards and the exercise, conversion or lapse of rights, and transfers or secondments to other Atlantia Group companies) during 2015. The table also shows the fair value (at the grant date) of each option awarded, as determined by a specially appointed expert, using the Monte Carlo model and other assumptions.

	Number of options/units awarded	Vesting date	Exercise / Grant date	Exercise price (€)	Fair value of each option or unit at grant date (€)	Expected expiration at grant date (years)	Risk free interest rate used	Expected volatility (based on historic mean)	Expected dividends at grant date
2014 PHANTOM SHARE OPTION PLAN
Options outstanding as at 1 January 2015
- 9 May 2014 grant	385,435	9 May 2017	9 May 2020	N/A (*)	2.88	3,0 - 6,0	1.10%	28.9%	5.47%
- transfers/secondments	30,973
	416,408
Changes in options in 2015
- 8 May 2015 grant	642,541	8 May 2018	8 May 2021	N/A (*)	2.59	3,0 - 6,0	1.01%	25.8%	5.32%
- transfers/secondments	-115,174
Options outstanding as at 31 December 2015	943,775

(*) Given that this is a cash bonus plan, involving payment of a gross amount in cash, the 2014 Phantom Share Option Plan does not require an exercise price. However, the Terms and Conditions if this specific plan indicate an "Exercise price" (equal to the arithmetic mean of Atlantia's share price in a determinate period) as the basis on which to calculate the gross amount to be paid to beneficiaries.

2014 Phantom Share Option Plan

Description

On 16 April 2014, the Annual General Meeting of Atlantia's shareholders approved the new incentive plan named the "2014 Phantom Share Option Plan", subsequently approved, within the scope of their responsibilities, by the boards of directors of the subsidiaries employing the beneficiaries. The plan entails the award of phantom share options free of charge in three annual award cycles (2014, 2015 and 2016), being options that give beneficiaries the right to payment of a gross amount in cash, computed on the basis of the increase in the value of Atlantia's ordinary shares in the relevant three-year period.

In accordance with the Terms and Conditions of the plan, the options granted will only vest if, at the end of the vesting period (equal to three years from the date on which the options were awarded to the beneficiaries by the Board of Directors), a minimum operating/financial performance target for (alternatively) the Group, the Company or for one or more of Autostrade per l'Italia's subsidiaries, as indicated for each Plan beneficiary (the "hurdle"), has been met or exceeded. The vested options may be exercised from, in part, the first day immediately following the vesting period, with the remaining part exercisable from the end of the first year after the end of the vesting period and, in any event, in the three years after the end of the vesting period (without prejudice to the Terms and Conditions of the plan as regards minimum holding requirements for executive directors and key management personnel). The number of exercisable options is to be computed in application of a mathematical algorithm, taking into account, among other things, the current value, the target value and the exercise price, in order to cap the realisable gain.

Changes in options in 2015

On 8 May 2015, the Board of Directors selected the beneficiaries for the second cycle of the plan in question, awarding a total of 2,971,817 phantom options with a vesting period from 8 May 2015 to 8 May 2018 and an exercise period, on achievement of the relevant hurdles, from 9 May 2018 to 8 May 2021. Thus, as at 31 December 2015, taking into account lapsed options at that date, the remaining options outstanding total 5,311,376, including 2,396,902 phantom options awarded under the first cycle and 2,914,474 phantom options awarded under the second cycle (the unit fair values of which as at 31 December 2015 were measured as €4.10 and €2.33, respectively, in place of the unit fair values at the grant date).

The prices of Atlantia's ordinary shares in the various periods covered by the above plans are shown below:

• a) price as at 31 December 2015: €24.57;
• b) price as at 8 May and 15 June 2015 (the grant date for new options or units, as described): €23.58 and €21.73, respectively;
• c) the weighted average price for 2015: €23.64;
• d) the weighted average price for the period 8 May 2015 31 December 2015: €23.89;
• e) the weighted average price for the period 15 June 2015 31 December 2015: €24.01.

In accordance with the requirements of IFRS 2, as a result of existing plans, in 2015 the Company has recognised staff costs, as indicated in note 5.4, of €2,305 thousand, based on the accrued fair value of the options and units awarded at that date, including €525 thousand accounted for as an increase in equity reserves. In contrast, the liabilities represented by phantom share options outstanding as at 31 December 2015 have been recognised in other current and non-current liabilities, based on the assumed exercise date. In addition, the Company has recognised the accrued portion of share-based incentive plans, with regard to the benefits awarded to certain directors and employees at its subsidiaries, in "Investments", as described in note 4.3.

Finally, following the exercise, by Atlantia's Board of Directors, of its authority to award phantom options in place of any additional options due, on closure of the second cycle of the "2011 Share Option Plan", the amount of €705 thousand was reclassified from equity reserves to other current liabilities, corresponding to the initial estimate of the fair value of the additional options.

7.3 Events after 31 December 2015

There were no material events after the end of the year under review.

ANNEXES TO THE FINANCIAL STATEMENTS

ANNEX 1

DISCLOSURES PURSUANT TO ART.149-DUODECIES OF THE CONSOB REGULATIONS FOR ISSUERS 11971/1999

The above annex has not been audited.

Annex 1

Disclosures pursuant to art.149duodecies of the CONSOB Regulations for Issuers 11971/1999

Atlantia S.p.A.

Type of service	Provider of service	Note	Fees (€000)
Audit	Parent Company's auditor		36
Certification	Parent Company's auditor	(1)	23
Certification	Associate of Parent Company's auditor	(2)	30
Other services	Parent Company's auditor	(3)	15
Total Parent Company			104

(1) Opinion on payment of the interim dividend for 2015.

(2) Review of the Sustainability Report.

(3) Signature of Consolidated Tax Return and Form 770, agreed upon procedures on accounting data and information and comfort letters for loans and bond issues, controls included in the requirements for tenders in which the Group participated

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Attestations of the consolidated and separate financial statements

Attestation of the consolidated financial statements pursuant to art. 81-ter of CONSOB Regulation 11971 of 14 May 1999, as amended

• 1. We, the undersigned, Giovanni Castellucci and Giancarlo Guenzi, as Chief Executive Officer and as the manager responsible for Atlantia SpA's financial reporting, having taken account of the provisions of art. 154bis, paragraphs 3 and 4 of Legislative Decree 58 of 24 February 1998, attest to:
• the adequacy with regard to the nature of the Company and
• the effective application

of the administrative and accounting procedures adopted in preparation of the consolidated financial statements during 2015.

• 1. The administrative and accounting procedures adopted in preparation of the consolidated financial statements as at and for the year ended 31 December 2015 were drawn up, and their adequacy assessed, on the basis of the regulations and methods drawn up by Atlantia SpA in accordance with the Internal Control–Integrated Framework model issued by the Committee of Sponsoring Organizations of the Treadway Commission. This Commission has established a body of general principles providing a standard for internal control systems that is generally accepted at international level.
• 1. We also attest that
  2. 3.1 the consolidated financial statements:
     • a) have been prepared in compliance with international accounting standards approved for application in the European Community by EC Regulation 1606/2002, passed by the European Parliament and by the Council on 19 July 2002;
     • b) are consistent with the underlying accounting books and records;
     • c) present a true and fair view of the financial position and results of operations of the issuer and the consolidated companies;
  3. 3.2 the report on operations contains a reliable analysis of operating trends and results, in addition to the state of affairs of the issuer and the consolidated companies, together with a description of the principal risks and uncertainties to which they are exposed.

4 March 2016

Giovanni Castellucci Giancarlo Guenzi Chief Executive Officer Manager responsible for financial reporting

Attestation of the separate financial statements pursuant to art. 81-ter of CONSOB Regulation 11971 of 14 May 1999, as amended

• 1. We, the undersigned, Giovanni Castellucci and Giancarlo Guenzi, as Chief Executive Officer and as the manager responsible for Atlantia SpA's financial reporting, having taken account of the provisions of art. 154bis, paragraphs 3 and 4 of Legislative Decree 58 of 24 February 1998, attest to:
• the adequacy with regard to the nature of the Company and
• the effective application

of the administrative and accounting procedures adopted in preparation of the separate financial statements during 2015.

• 1. The administrative and accounting procedures adopted in preparation of the separate financial statements as at and for the year ended 31 December 2015 were drawn up, and their adequacy assessed, on the basis of the regulations and methods drawn up by Atlantia SpA in accordance with the Internal Control–Integrated Framework model issued by the Committee of Sponsoring Organizations of the Treadway Commission. This Commission has established a body of general principles providing a standard for internal control systems that is generally accepted at international level.
• 1. We also attest that
  2. 3.1 the separate financial statements:
     • a) have been prepared in compliance with international accounting standards approved for application in the European Community by EC Regulation 1606/2002, passed by the European Parliament and by the Council on 19 July 2002;
     • b) are consistent with the underlying accounting books and records;
     • c) present a true and fair view of the financial position and results of operations of the issuer;
  3. 3.2 the report on operations contains a reliable analysis of operating trends and results, in addition to the state of affairs of the issuer, together with a description of the principal risks and uncertainties to which it is exposed.

4 March 2016

Giovanni Castellucci Giancarlo Guenzi Chief Executive Officer Manager responsible for financial reporting

REPORT OF THE BOARD OF STATUTORY AUDITORS TO THE ANNUAL GENERAL MEETING

(pursuant to art 153 of Legislative Decree 58/1998 and art. 2429, para. 2 of the Italian Civil Code)

Dear Shareholders,

The Board of Statutory Auditors of Atlantia SpA ("Atlantia" or the "Company"), pursuant to art. 153 of Legislative Decree 58/1998 (the "Consolidated Finance Act" or "CFA") and art. 2429, paragraph 2 of the Italian Civil Code, is required to report to the Annual General Meeting, called to approve the financial statements, on the audit activities conducted during the financial year within the scope of our responsibilities, on any omissions and irregularities observed and on the results for the Company's financial year. The Board of Statutory Auditors is also required to make proposals regarding the financial statements and its approval.

During the annual reporting period ended 31 December 2015, we performed the audit procedures required by law, adopting the Standards recommended by the Italian accounting profession and in compliance with CONSOB requirements regarding corporate controls, and the provisions of art. 19 of Legislative Decree 39 of 27 January 2010.

* * *

Atlantia's financial statements have been prepared on the basis of the IAS/IFRS issued by the International Accounting Standards Board (IASB) and endorsed by the European Union, and in accordance with the measures introduced in application of art. 9 of Legislative Decree 38/2005.

The Directors' report on operations summarises the principal risks and uncertainties and reports on the outlook for the Company.

The Company's financial statements have been prepared in accordance with the relevant legislation and are accompanied by the documents required by the Italian Civil Code and the CFA.

The Board of Statutory Auditors obtained the information needed in order to conduct its assigned audit activities by participating in meetings of the Board of Directors and of the various board committees, during discussions with the management of the Company and the Group, during meetings with the independent auditors and with the boards of statutory auditors of Group companies, through examination of the information obtained by the relevant company departments and through further audit activities.

Election of the Board of Statutory Auditors

The Board of Statutory Auditors in office at the date of this report was elected by the Annual General Meeting of 24 April 2015 and its members are Corrado Gatti (Chairman), Alberto di Nigro (standing Auditor), Lelio Fornabaio (standing Auditor), Silvia Olivotto (standing Auditor) and Livia Salvini (standing Auditor).

The alternate Auditors are Laura Castaldi and Giuseppe Cerati.

Material transactions and events

Material transactions and events with an impact on the Group in 2015 are described below:

■ Atlantia's buyback of 99.87% of the asset-backed securities (ABS – CLASS A4) issued by Romulus Finance (the special purpose entity controlled by Aeroporti di Roma and consolidated in the

Atlantia Group), resulting in non-recurring net financial expenses of €112,832 thousand, before the related taxation;

• the partial buyback of bonds issued by Atlantia and maturing in 2016, 2017, 2019 and 2020, resulting in non-recurring net financial expenses of €120,677 thousand, before the related taxation. As a result of the above financial transactions, the Group has recognised financial expenses of €233,509 thousand, before the related taxation of €67,568 thousand, resulting in a net impact on the result for the year of €165,941 thousand;
• new bond issues by Autostrade per l'Italia ("ASPI"), totalling €2,617,531 thousand, including €1,884,610 thousand, as part of the above MTN Programme launched in October 2014 and €732,921 thousand in bonds issued to retail investors;
• Atlantia's early redemption of a portion of bonds with a par value of €1,351,250 thousand, maturing in 2016, 2017, 2018 and 2019, accompanied, at the same time, by Autostrade per l'Italia's repayment of matching loans with the same face value granted to this subsidiary. The resulting impact on the separate and consolidated financial statements are described in the related notes;
• in May 2015, a fire broke out in Terminal 3 at Fiumicino airport, operated by Aeroporti di Roma. This resulted in both lost aviation and non-aviation revenues and specific costs and provisions having an impact on the operating results of the airports segment;
• on 11 June 2015, the Group's Chief Human Resources Officer was appointed the "Employer" pursuant to the legislation governing occupational health and safety (Legislative Decree 81/2008). On the same date, this corporate officer was assigned sole authority and responsibility for ensuring compliance with environmental regulations (Legislative Decree 152/2006);
• on 16 June 2015, Edizione Srl informed Atlantia that the partial demerger of Sintonia SpA (also "Sintonia") was effective. in accordance with art. 120 of the CFA and articles 117 et seq. of the Regulations for Issuers, the Company received notification of the new investments, also published by the CONSOB on 24 June 2015;
• on 10 July 2015, the Board of Directors appointed the following members of the Supervisory Board required by Legislative Decree 231/2001: Attilio Befera, as Coordinator, Giovanni Dionisi, external member, and Concetta Testa, internal member (and currently the Group's Head of Internal Audit);
• on 16 October 2015, Atlantia's Board of Directors approved payment of an interim dividend for 2015 of €0.40 per share, amounting to total of €329 million (based on the number of shares outstanding as at 16 October 2015). On the same date, the independent auditors, Deloitte & Touche SpA ("Deloitte & Touche"), issued the opinion required by article 2433-bis of the Italian Civil Code;
• as already reported in last year's Board of Statutory Auditors' report, on 30 October 2014, the project company, Ecomouv, was notified of the decision to terminate its partnership agreement (the "Agreement") due to difficulties in implementing the ecotax. Subsequently, on 30 December 2014, the French government informed Ecomouv that it would assume liability for the compensation due as a result of termination of the Agreement. The compensation, totalling a net amount of €403 million, was paid on 2 March 2015, enabling Ecomouv: (i) to recover its investment, including repayment of the borrowings not transferred to the French government, (ii) earn a return on invested capital and (iii) cover the cost of putting Ecomouv into voluntary liquidation, including the cost of safeguarding jobs. The French government also undertook to repurchase the equipment produced by Ecomouv and distributed to operators, and to repay the related project financing. Finally, the obligation to repay the project financing obtained from the company's banks was assumed directly by the French government;
• on 10 December 2015, the Ministry of Infrastructure and Transport and ASPI signed the II Addendum to the Single Concession Arrangement, which has added the Casalecchio - Northbound interchange to ASPI's investment commitments. This project requires a commitment to invest up to a total of approximately €157 million, with around €2 million already invested as at 31 December 2015 to cover the cost of design, and the remainder to be paid to ANAS on the basis of the state of progress of the works. ANAS is to build and then manage the road. The Addendum will be effective once the Minister of Infrastructure and Transport and Minister of the Economy and Finance have issued the relevant decree and it has been registered with the Court of Auditors;
• Enabling Act 11/2016 regarding tenders and concessions, designed to apply the relevant EU directives and reform the regulations governing public contracts, was published in the Official Gazette of 29 January 2016. The legislation has introduced an obligation for public and private entities, which hold an existing or future concession to provide public works or services, to award 80% of the related contracts for works, services or goods, with a value of over €150 thousand, by public tender. The legislation also establishes that the remaining part may be carried out in-house, in the case of public entities, or by direct or indirect subsidiaries or associates in the case of private entities. The legislation provides for a transitional period of adjustment of no more than twenty-four months in the case of existing concessions. The only exclusions from compliance with the above obligation are existing or future concessions awarded in the form of project financing, and existing or future concessions awarded by public tender in accordance with EU law, for which existing legislation governing tenders in force at the date of entry into effect of the enabling act (13 February 2016) will continue to apply. By 18 April 2016, the government is authorised to issue a legislative decree applying the above EU directives, in accordance with the criteria contained in the enabling act;
• on 21 January 2015, the Board of Directors, with the prior agreement of the Internal Control, Risk and Corporate Governance Committee and having consulted with the Board of Statutory Auditors and the Director Responsible for the Internal Control and Risk Management System, approved the 2015 Audit Plan;
• on 11 December 2015, the Board of Directors, having noted the results of an assessment and review of of the nature and degree of risk compatible with the Group's strategic goals, approved Atlantia's new risk catalogue.

Atypical or unusual transactions

The Board of Statutory Auditors has not found evidence of atypical and/or unusual transactions, including intra-group or intra-group and other related party transactions.

The Board has also assessed the adequacy of the information provided in the management report on operations, regarding the absence of atypical and/or unusual transactions, including intra-group or intra-group and other related party transactions.

Intercompany or related party transactions

The Board of Statutory Auditors has verified ordinary or recurring related party and/or intercompany transactions, with regard to which we report the following:

• intercompany transactions, whether of a trading or financial nature, between subsidiaries and parents are conducted on an arm's length basis. Such transactions are adequately described in the Annual Report. In particular, note 10.5 to the consolidated financial statements , "Related party transactions", provides details of the impact on the income statement and financial position of trading and financial transactions between the Group and related parties, including Atlantia's Directors, Statutory Auditors and key management personnel. Related party transactions did not include atypical and/or unusual transactions and, during 2015, the Atlantia Group did not engage in material trading or financial relations with Atlantia's direct or indirect parents;
• with reference to the Atlantia Group's transactions with other related parties, note 10.5 to the consolidated financial statements states that, for the purposes of the CONSOB Regulations adopted in Resolution 17221 of 12 March 2012, as amended, on 11 November 2010 Atlantia's Board of Directors, with the prior agreement of the Committee of Independent Directors with responsibility for Related Party Transactions, approved the Procedure for Related Party Transactions entered into directly by the Company and/or indirectly through one of its subsidiaries. The Procedure was subsequently revised by the Board of Directors on 20 February 2014, with the prior agreement of the Committee of Independent Directors with responsibility for Related Party Transactions communicated on 19 February 2014. On 11 December 2015, following the resolution approved by the Board of Directors and with the agreement of the Committee of Independent Directors with responsibility for Related Party Transactions, an amended version of the Procedure was approved in order to reflect organisational changes within Atlantia and the Group and to ensure correct flows of information between the various parties involved in the process;
• with reference to Atlantia's related party transactions, note 7.2 to the separate financial statements, "Related party transactions", states that the Company primarily engages in transactions with its wholly-owned subsidiary, ASPI, over which it exercises management and coordination;
• as a result of the tax consolidation arrangement headed by Atlantia, the statement of financial position as at 31 December 2015 includes current tax assets and liabilities due from and to Group companies of €28,855 thousand and €13,7789 thousand, respectively. The balances refer to IRES deriving the tax assets and liabilities resulting from the tax consolidation arrangement;
• details of the impact of related party transactions on the results of operations and the financial position as at and for the year ended 31 December 2015 are provided in note 7.2 to the separate financial statements;
• the "Remuneration Report 2015", published on the Company's website and prepared pursuant to art. 123-ter of the CFA, provides details of the remuneration paid to Directors, Statutory Auditors and key management personnel for 2015. Disclosures regarding the remuneration policy are included in the Remuneration Report, which was examined by the Board of Statutory Auditors and agreed on with the Human Resources and Remuneration Committee and the Internal Control, Risk and Corporate Governance Committee.

Impairment testing

As required by the joint instructions issued by the Bank of Italy/CONSOB/ISVAP on 3 March 2010, Atlantia's Board of Directors independently approved the impairment testing procedures and results prior to approval of the financial statements. At a Board meeting held on 12 February 2016, thus preceding the meeting held to approve the financial statements on 4 March 2016, Atlantia's Board of Directors verified compliance of the impairment testing procedures used with the requirements of IAS 36.

Oversight pursuant to the Consolidated Act on Statutory Audits

The Consolidated Act on External Audits (Legislative Decree 39/2010) requires the Board of Statutory Auditors (identified in the Consolidated Act as the "Internal and Statutory Audit Committee") to oversee:

• (i) the financial reporting process;
• (ii) the effectiveness of internal control, internal audit and risk management systems;
• (iii) the statutory audit of the annual and consolidated accounts;
• (iv) the independence of the independent auditors, checking any services other than auditing provided.

The Board of Statutory Auditors interacted with the Internal Control, Risk and Corporate Governance Committee, a Board committee, with the aim of coordinating expertise, exchanging information, engaging in ongoing consultation and avoiding any overlap between their activities.

* * *

With specific reference to the Consolidated Act on Statutory Audits, the following should be noted.

Oversight of the financial reporting process

The Board of Statutory Auditors has verified the existence of regulations and procedures governing the process of preparing and publishing financial information. In this regard, the Annual Report on Corporate Governance and the Ownership Structure defines guidelines for the establishment and management of administrative and accounting procedures. The Board of Statutory Auditors, with the assistance of the manager responsible for financial reporting, examined the procedures involved in preparing the Company's financial statements and the consolidated financial statements, in addition to periodic financial reports. The Board of Statutory Auditors also received information on the process that enables the manager responsible for financial reporting and the Chief Executive Officer to issue the attestations required by art. 154-bis of the CFA.

The Board of Statutory Auditors was informed that the administrative/accounting procedures applied in preparation of the financial statements and of all other financial reports are the responsibility of the manager responsible for financial reporting, who together with the Chief Executive Officer attests to their adequacy and effective application in the preparation of the separate and consolidated financial statements and interim half-year report.

With reference to the oversight required by art. 19 of Legislative Decree 39/2010, relating to financial reporting, the Board of Statutory Auditors has verified that the administrative and accounting aspects of the internal control system, as they relate to the attestations to be issued by the Chief Executive Officer and the manager responsible for financial reporting, were revised in 2015. The process entailed Group-level analyses of significant entities and the related significant processes, through the mapping of activities carried out to verify the existence of controls (at entity and process level) designed to oversee compliance risk in respect of the law and accounting regulations and standards relating to periodic financial reporting. Effective application of the administrative and accounting procedures was verified by the manager responsible for financial reporting, with the assistance of the relevant internal departments (including the Internal Audit department) and leading firm of consultants.

With regard to art. 18-ter of the CONSOB Regulation on Markets (which has introduced requirements for subsidiaries incorporated under, or regulated by, the laws of non-EU states and of material significance for the purposes of the consolidated financial statements), the Group companies to which the regulations are applicable have adopted procedures enabling them to submit reporting packages, for use during preparation of the consolidated financial statements, on a regular basis to the Company's management and the Parent Company's independent auditors.

On 4 March 2016, the Chief Executive Officer and the manager responsible for financial reporting issued the attestations of the consolidated and separate financial statements required by art. 81-ter of the CONSOB Regulations of 14 May 1999, as amended.

Furthermore, in implementing the Audit Plan 2015, the Internal Audit department took the necessary steps to verify the correct application of the instructions contained in the "Financial management and financial risk management policy", which sets out the principles, organisation and responsibilities relating to the management of financial risks.

The Board of Statutory Auditors thus believes the financial reporting process to be adequate and deems that there is nothing to report to the General Meeting.

Oversight of the effectiveness of the internal control, internal audit and risk management systems and the statutory audit of the annual and consolidated accounts

The Board of Statutory Auditors has assessed and verified the adequacy of the internal control system and the effectiveness of internal control and risk management systems. You will recall that, in order to assess the correct functioning of the internal control system, in 2015 the Board of Directors made use of the Internal Control, Risk and Corporate Governance Committee, the Head of the Internal Audit department (operating with an adequate level of independence and suitably equipped to carry out the assigned role, and reporting on her activities to the Chairman, Chief Executive Officer, the Internal Control, Risk and Corporate Governance Committee and the Board of Statutory Auditors), the Group Controller, the Supervisory Board and the Ethics Officer.

In particular, during our periodic meetings with the Head of Internal Audit and the Group Controller (whose department includes Risk Management), the Board of Statutory Auditors was kept fully informed regarding internal auditing activities (with a view to assessing the adequacy and functionality of the internal control system, and compliance with the law and with internal procedures and regulations), and the activities of the Risk Management unit, which is responsible for overseeing the management of risk via correct implementation and development of the COSO Enterprise Risk Management (ERM), a methodological framework that Atlantia has adopted to identify, measure, manage and monitor the risks inherent in the Company's current Business Risk Model (compliance, regulatory and operational risks).

It should be remembered that, on 11 December 2014, the Board of Directors, at the recommendation of the Director Responsible for the Internal Control and Risk Management System, with the prior agreement of the Internal Control, Risk and Corporate Governance Committee and having consulted with the Board of Statutory Auditors, established an Internal Audit department (later named "Group Internal Audit"), effective from 1 January 2015, and appointed, with effect from the same date, the Group's Head of Internal Audit. In accordance with art. 11.3 of Atlantia's Corporate Governance Code, "the Head of Internal Audit is responsible for verifying that the internal control and risk management

system is properly functioning and fit for purpose". The same person is required to prepare "periodic reports containing sufficient information on audit activities, the method of risk management and compliance with plans developed for risk mitigation. The periodic reports must contain an assessment of the internal control and risk management system". On 15 February 2016, the Head of Group Internal Audit issued her report on the fitness of the internal control and risk management system, which supplements the reports prepared periodically and submitted to the Internal Control, Risk and Corporate Governance Committee and the Board of Statutory Auditors, and contains an assessment of whether or not the internal control and risk management system is fit for purpose (to the extent of her responsibilities). This assessment then forms the basis for the overall assessment of the internal control system that Atlantia's Internal Control, Risk and Corporate Governance Committee submits annually to the Company's Board of Directors. The report for 2015, issued on 15 February 2016, states that the internal control and risk management system is fit to ensure that the Company is managed in a way that is sound, proper and consistent with pre-established objectives.

The Board of Statutory Auditors also expressed a favourable opinion – as explicitly required by art. 7, criterion 7.C.1. of the Corporate Governance Code, on the fixed and variable remuneration to be paid to the Head of Internal Audit for 2015, as fixed by the Board of Directors on the recommendation of the Director Responsible for the Internal Control and Risk Management System, with the agreement of the Internal Control, Risk and Corporate Governance Committee.

Subsequently, at its meeting of 8 May 2015, the Board of Directors set out the Risk Appetite level for the Group as a whole, as well as the strategies and objectives to be pursued. At its meeting of 11 December 2015, the Board of Directors heard a presentation on the results of the risk review carried out from the boards of directors of the most important Group companies.

Lastly, at its meeting of 4 March 2016 – on the recommendation of the Director Responsible for the Internal Control and Risk Management System, with the agreement of the Internal Control, Risk and Corporate Governance Committee, in consultation with the Board of Statutory Auditors – the Board of Directors set out the guidelines for the internal control and risk management system.

Moreover, at the same meeting, after noting the conclusions of the analysis by the Control, Risk and Corporate Governance Committee of the detailed information provided by staff responsible for the internal control and risk management system, the Board of Directors concluded that the internal control and risk management system, as a whole, may be deemed adequate, efficacious and in good working order.

In addition, the Board of Statutory Auditors also notes that, during 2015, Atlantia's Supervisory Board continued its review of the organisational, management and control model ("OMCM") adopted by Atlantia, pursuant to Legislative Decree 231/2001, in order to ensure that the model had kept pace with changes in legislation and in the Company's organisational structure during the year.

The Supervisory Board dealt with issues arising during its review of the OMCM (its review was in response to the new offences added in the first half of 2015) and drew up a plan of action for monitoring and assessing the adequacy and effective implementation of the OMCM.

The Board of Statutory Auditors examined the Supervisory Board's reports on their activities in the first and second halves of 2015 and do not have anything to mention in this regard in this report. Finally, we declare that:

• the accounts have been submitted to the required controls by the independent auditors, Deloitte & Touche, appointed by the Annual General Meeting of 24 April 2012 for the annual reporting periods 2012-2020. During their periodic meetings with the Board of Statutory Auditors, the independent auditors had nothing to report on this matter;
• with regard to the provisions of art. 19 of Legislative Decree 39/2010, the Board of Statutory Auditors oversaw the audit of the annual and consolidated accounts, obtaining detailed information, during meetings with the independent auditors, on the audit plan, significant aspects of the financial statements and the potential impact of the significant risks highlighted in the financial statements;
• as noted above, we held periodic meetings during the year with the manager responsible for financial reporting and the head of Internal Audit;
• the Board of Statutory Auditors, on occasion in the person of its Chairman, participated in the meetings of the Internal Control, Risk and Corporate Governance Committee and of the Human Resources and Remuneration Committee.

Independence of the independent auditors, checking any services other than auditing provided

■ the Board of Statutory Auditors verified, also with reference to the provisions of art. 19 of Legislative Decree 39/2010, the independence of the independent auditors, Deloitte & Touche, checking the nature and entity of any services other than auditing provided to Atlantia, its subsidiaries, Sintonia and entities under common control by the auditors and by their associates. The fees paid by the Atlantia Group to the independent auditors, Deloitte & Touche or associates of Deloitte & Touche, are as follows:

	€000
Audit	979
Certification (audit-related)	46
Other services	328
Total	1,353

It should be noted that the category "Other services" (those other than audit or certification) includes €166 thousand for services relating to signature of the Company's tax return and Form 770, agreedupon procedures on accounting data and information, comfort letters relating to the issue of bonds and services relating to the internal control system, whilst €162 thousand regards a review of the sustainability report, agreed-upon procedures on accounting data and information and checks on the income tax applied to employees and obligations as a withholding agent.

"Other Services" account for 32% of the total fees paid for "Audit" and "Certification (linked to audits)" services.

In the light of the above, we therefore deem that the independent auditors, Deloitte & Touche, meet the requirements for independence.

Finally, pursuant to art. 13, paragraph 1 of Legislative Decree 39/2010, on 21 January 2015, the Board of Statutory Auditors prepared a reasoned recommendation to Atlantia's shareholders regarding a request, received from Deloitte & Touche on 29 May 2014, for an annual supplement of €10 thousand to be added to the fees payable for the years between 2014 and 2020, in recognition of an additional workload.

Further activities of the Board of Statutory Auditors and disclosures required by the CONSOB

In carrying out our duties, as required by art. 2403 of the Italian Civil Code and art. 149 of the CFA, the Board of Statutory Auditors:

• verified compliance with the law and the articles of association;
• within the scope of our responsibilities, obtained information on and checked the adequacy of the Company's organisational structure and on observance of the principles of good governance, by means of direct observation, the gathering of information from the heads of the various departments and through meetings with the independent auditors with a view to exchanging the relevant data and information; in this regard we have no particular observations to make;
• assessed and verified the adequacy of the administrative/accounting system and its ability to correctly represent operating activities, by gathering information from the respective heads of department, examining corporate documents and analysing the results of the work carried out by the independent; in this regard we have no particular observations to make;
• oversaw the methods for implementing the governance rules laid down in Atlantia's Corporate Governance Code;
• verified the adequacy of the guidelines communicated by the Company to its subsidiaries pursuant to article 114, paragraph 2 of the CFA;
• with regard to the provisions of art. 149, paragraph 1.c-bis of the CFA relating to the Board of Statutory Auditors' supervision "of the methods of actually implementing the corporate governance rules laid down in the corporate governance codes prepared by stock exchange companies and the related trade associations, with which the Company has publicly declared it will comply", taking account of the fact that art. 15, paragraph 2 of the Corporate Governance Code requires that "Statutory Auditors shall be chosen from people who may be qualified as independent also on the

basis of the criteria contained in this Code with reference to Directors" and that "the Board of Statutory Auditors shall check compliance with the above criteria after election and every year thereafter, including the outcome of their checks in the corporate governance report", at the meeting of 8 May 2015 the Board of Statutory Auditors checked that all the Statutory Auditors meet the independence requirements. In accordance with art. 144 novies, paragraph 1-ter of CONSOB Regulation 11971, the Board of Statutory Auditors notified the outcome of its checks to the Board of Directors for publication:

• oversaw compliance with the requirements relating to "Market abuse" and "Protections for savers", as they relate to financial reporting, and those relating to "Internal dealing", with particular regard to the processing of confidential information and the procedure for publishing news releases and announcements. The Board of Statutory Auditors monitored compliance with the provisions of art. 115-bis of the CFA and the Regulations governing updates of the register of persons with access to confidential information;
• was informed about the Group's initiatives with regard to health, safety, the environment and quality, and the related training programmes needed to keep pace with new regulations governing such matters. The Board noted the ongoing attention given to such matters by the Company's Directors and management and that the relevant policy forms an integral part of its Code of Ethics. We were able to confirm the ongoing commitment to training and improvement and the existence of a formal system for delegating specific duties and responsibilities;
• notes that the Atlantia Group has revised its security policies with a view to ensuring adequate levels of data protection, which are managed in application of the Data Protection Code (Legislative Decree 196/2003) and the directives issued by the Information Commissioner.

With specific regard to our examination of the financial statements as at and for the year ended 31 December 2015, the consolidated financial statements and the report on operations, the Board of Statutory Auditors states the following:

• we have checked the overall basis of presentation of the separate and consolidated financial statements and their general compliance with the laws relating to their preparation and structure;
• we have checked the reasonableness of the valuation procedures applied and their compliance with the requirements of IFRS;
• we have verified that the financial statements are consistent with the information in our possession, as a result of carrying out our duties, and have no particular observations to make in this regard;
• to the best of the Board of Statutory Auditors' knowledge, in preparing the financial statements, the Directors did not elect to apply any of the exemptions permitted by art. 2423, paragraph 4 of the Italian Civil Code;
• we verified compliance with the laws governing preparation of the management report on operations and have no particular observations to make in this regard;
• we note that, as described in the Introduction to the section "Financial review for Atlantia SpA" in the report on operations, the Company has presented the reclassified consolidated income statement, the consolidated statement of comprehensive income, the statement of changes in consolidated equity and the statement of changes in consolidated net debt for the year ended 31 December 2015, and the reclassified consolidated statement of financial position as at 31 December 2015, which include comparative amounts for the previous year. In the Introduction to the "Group financial review", it is reported that the scope of consolidation at 31 December 2015 differs from that used in the consolidated financial statements for the year ended 31 December 2014, following the acquisition of control of Autostrada Tirrenica SpA following the completion, in September 2015, of Autostrade per l'Italia's purchase of a 74.95% interest in this company. When added to Autostrade per l'Italia's existing 24.98% interest in the company, the Group's total interest amounts to 99.93%. The acquired company's income and expenses for the fourth quarter of 2015 and its assets and liabilities at 31 December 2015 have been included in the consolidated financial statements.

Finally, it is stated that the reclassified financial statements analysed in the "Group financial review" have not been independently audited.

Moreover, the Board of Statutory Auditors:

• pursuant to art. 150, paragraphs 1 and 2 of the CFA: (i) obtained reports from the Directors, on at least a quarterly basis, providing adequate information on the Company's activities and on transactions carried out by the Company and its subsidiaries with a major impact on the Company's results of operations, financial position and cash flow, ensuring that the actions decided on and carried out were in compliance with the law and the articles of association, were not subject to any potential conflict of interest or contrary to the resolutions adopted by the General Meeting, and were not clearly imprudent or risky or such as to compromise the value of the Company; (ii) held meetings with representatives of the independent auditors and no significant information that should be included in this report has come to light;
• pursuant to art. 151, paragraphs 1 and 2 of the CFA, exchanged information with the board of statutory auditors of Atlantia's direct subsidiaries (ASPI, ADR, Pavimental SpA and Spea Engineering SpA) regarding activities carried out during the year;
• received information from the Supervisory Board on its activities, which did not find any problems or significant irregularities;
• notes that the Annual Report on Corporate Governance and the Ownership Structure, in compliance with the related legal and regulatory obligations, contains information on the ownership structure, application of the codes of conduct and fulfilment of the resulting commitments, highlighting the choices made by the Company in applying corporate governance standards;
• with regard to the periodic assessment to be conducted in accordance with the Corporate Governance Code, the Directors issued the necessary representations confirming their compliance with the relevant independence requirements, as established by art. 148, paragraph 3 of Legislative Decree 58/1998 (referred to in art. 147-ter, paragraph 4 of Legislative Decree 58/1998) and art. 3.1 of Atlantia's Corporate Governance Code.

The Board of Statutory Auditors states that:

• we issued a favourable opinion, pursuant to art. 2389, paragraph 3 of the Italian Civil Code, regarding the remuneration of executive Directors;
• we did not issue further opinions during the year, other than those referred to above;
• no complaints have been lodged under art. 2408 of the Italian Civil Code, and no petitions of any kind have been presented.

With regard to the independent auditors, the Board of Statutory Auditors reports that Deloitte & Touche:

• on 15 March 2016, provided their annual confirmation of independence pursuant to art. 17, paragraph 9.a) of Legislative Decree 39/2010;
• on 30 March 2016, issued their report containing their opinion on the fact that the separate and consolidated financial statements comply with the applicable laws and accounting standards, and their opinion on the consistency of the report on operations with the financial statements. The report does not contain any reservations or additional information.

The above audit procedures were carried out during 16 meetings of the Board of Statutory Auditors (including 6 attended by the outgoing Board and 10 by the current Board), by taking part in 12 meetings of the Board of Directors, and through the participation of the Chairman of the Board of Statutory Auditors, or another Auditor, in meetings of the Internal Control, Risk and Corporate Governance Committee, the Human Resources and Remuneration Committee and the Committee of Independent Directors with responsibility for Related Party Transactions, and participation in the Annual General Meeting of shareholders held on 24 April 2015. In addition, as a result of the audit procedures carried out and on the basis of the information obtained from the independent auditors, we are not aware of any negligence, fraud, irregularities or any other material events, that would require a report to be made to regulatory bodies.

Proposal to the Annual General Meeting

The Board of Statutory Auditors is in favour of approval of the financial statements for the year ended 31 December 2015 and has no objections regarding the Board of Directors' proposal for the appropriation of profit for the year.

Election of the new Board of Directors

311

The term of office of the Board of Directors elected by the Annual General Meeting of 30 April 2013 expires with approval of the financial statements for the year ended 31 December 2015. You are thus invited, in accordance with the law and the Company's articles of association, to elect a new Board of Directors.

***

Pursuant to art. 144 quinquiesdecies of the Regulations for Issuers, approved by the CONSOB with Resolution 11971/99, as amended, the list of positions held by members of the Board of Statutory Auditors at the companies in Book V, Section V, Chapters V, VI and VII of the Italian Civil Code is published by the CONSOB on its website (www.consob.it).

	***
30 March 2016
Corrado Gatti (Chairman)	____
Alberto De Nigro (Auditor)	____
Lelio Fornabaio (Auditor)	____
Silvia Olivotto (Auditor)	____
Livia Salvini (Auditor)	____

Independent Auditors' Report

Deloitte

Delaitte & Touche S.p.A Via della Camilluccia, 589/A 00135 Roma Italia Tel: =39 06 367491 Fax +39 06 36749282 www.delaitte.it

INDEPENDENT AUDITORS' REPORT PURSUANT TO ART. 14 AND 16 OF LEGISLATIVE DECREE No. 39 OF JANUARY 27, 2010

To the Shareholders of Atlantia S.p.A.

Report on the Consolidated Financial Statements

We have audited the accompanying consolidated financial statements of Atlantia S.p.A. and its subsidiaries (the "Atlantia Group"), which comprise the consolidated statement of financial position as at December 31, 2015, and the consolidated income statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Consolidated Financial Statements

The Company's Directors are responsible for the preparation of these consolidated financial statements that give a true and fair view in accordance with International Financial Reporting Standards as adopted by the European Union and the requirements of national regulations issued pursuant to art. 9 of Italian Legislative Decree nº 38/2005.

Auditor's Responsibility

Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing (ISA Italia) issued pursuant to art. 11, nº 3, of Italian Legislative Decree 39/10. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are from material misstatements.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparat on that give a true and fair view of consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the en:ity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Directors, as well as evaluating the overall presentation of the consolidated financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Ancona Bargamo Bologna Blescia Caglian Firence Genova Milano Napol Padova
Palermo Parma Roma Torino Treviso Verona

Sede Legale: Via Tortona, 25 - 20144 Milano - Capitale Sociale: Euro 10 328,220.00 Lu Crodice FistaleRegistro delle imprese Milano n. 03049560166 - R.E.A. Milano n. 1720239.
Parsta NA, IT 03049560166.

Opinion

In our opinion, the consolidated financial statements give a true and fair view of the financial position of the Atlantia Group as at December 31, 2015, and of its financial performance and cash flows for the year then ended in accordance with International Financial Reporting Standards as adopted by the European Union and the requirements of national regulations issued pursuant to art. 9 of Italian Legislative Decree nº 38/2005.

Report on Other Legal and Regulatory Requirements

We have performed the procecures indicated in the Auditing Standard (SA Italia) nº 720B in order to express, as required by law, an opinion on the consistency of the report on operations and of certain information included in the report on corporate governance required by art. 123-bis, nº 4, of Italian Legislative Decree nº 58/98, which are the responsibility of the Directors of Atlantia S.p.A., with the consolidated financial statements of the Atlantia Group as at December 31, 2015. In our opinion the report on operations and the information included in the report on corporate governance referred to above are consistent with the consolidated financial statements of the Atlantia Group as at December 31,2015.

DELOITTE & TOUCHE S.p.A.

Signed by Fabio Pompei Partner

Rome, Italy March 30, 2016

This revort has been translated into the English language solely for the convenience of international readers.

Deloitte

Deloitte & Touche S.c. A. Via della Camillucola, 589/% 00135 Rama Italia Tel: +39 06 367491 Fax +39 06 36749282 www.delpitte.it

INDEPENDENT AUDITORS' REPORT PURSUANT TO ART. 14 AND 16 OF LEGISLATIVE DECREE No. 39 OF JANUARY 27, 2010

To the Shareholders of Atlantia S.p.A.

Report on the Financial Statements

We have audited the accompanying financial statements of Atantia S.p.A. which comprise the statement of financial position as at December 31, 2015, and the income statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Directors are responsible for the preparation of these financial statements that give a true and fair view in accordance with International Financial Reporting Standards as adopted by the European Union and the requirements of national regulations issued pursuant to art. 9 of Italian Legislative Decree nº 38/2005.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing (ISA Italia) issued pursuant to art. 11, nº 3, of Ita ian Legislative Decree 39/10. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatements.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation that give a true and fair view of financial statements in order to cesign audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Directors, as well as evaluating the overall presentation of the financial statements,

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Ancona Barl Bergamo Bologna Brascia Caglian Fininae Genova Millano Nepoli Padova Palermo Parma Roma Toring Trevoo Veror

Sede Legale: V.a Tortana, 25 -20144 Millano - Cipitale Sociale: Euro 10 328, 220,00 Liv Codice RiscaleRogistro delle le press Milario n. 03049562166 - R.E.A. Millano n. 1720239 Partita D/A; IT (03049560166

Opinion

In our opinion, the financial statements give a true and fair view of the financial position of Atlantia S.p.A. as at December 31, 2015, and of its financial performance and cash flows for the year then ended in accordance with International Financial Reporting Standards as adopted by the European Union and the requirements of national regulations issued pursuant to art. 9 of Italian Legistative Decree nº 38/2005.

Report on Other Legal and Regulatory Requirements

We have performed the procecures indicated in the Auditing Standard (SA Italia) nº 720B in order to express, as required by law, an opinion on the consistency of the report on operations and of certain information included in the report on corporate governance required by art. 23-bis, nº 4, of Italian Legislative Decree nº 58/98, which are the rsponsibility of the Directors of Atlantia S.p.A., with the financial statements of Atlantia S.p.A as at December 31, 2015. In our opinion the report on operations and the information included in the report on corporate governance referred to above are consistent with the financial statements of Atlantia S.p.A as at December 31, 2015.

DELOITTE & TOUCHE S.p.A.

Signed by Fabio Pompei Partner

Rome, Italy March 30, 2016

This revort has been translated into the English language solely for the convenience of international readers.

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317

Key performance indicators for subsidiaries, associates and joint ventures pursuant to art. 2429, paragraphs 3 and 4 of the Italian Civil Code 6

Key indicators extracted from the financial statements of subsidiaries, associates and joint ventures, as defined by paragraphs 3 and 4 of art. 2429 of the Italian Civil Code

The figures provided below were extracted from the most recent financial statements of Atlantia's subsidiaries and joint ventures, as approved by their respective boards of directors. The companies' reporting date is 31 December of each year, unless otherwise indicated.

Autostrade per l'Italia SpA and Aeroporti di Roma SpA prepare their financial statements in accordance with international financial reporting standards, whereas the other companies' financial statements are prepared in accordance with accounting principles generally accepted in their countries.

Subsidiaries

Aeroporti di Roma SpA

€000	FINANCIAL POSITION	31 December 2015	31 December 2014
Non-current assets		2,231,667	2,163,470
Current assets		554,415	610,050
Total assets		2,786,082	2,773,520
Equity		1,128,704	1,126,311
of which issued capital		62,225	62,225
Liabilities		1,657,378	1,647,209
Total equity and liabilities		2,786,082	2,773,520

€000	RESULTS OF OPERATIONS	2015	2014
Operating income		941,220	804,767
Operating costs		-692,693	-558,795
Operating profit/(loss)		248,527	245,972
Profit/(Loss) for the period		134,556	131,023

Autostrade per l'Italia SpA

€000	FINANCIAL POSITION	31 December 2014	31 December 2013
Non-current assets		19,779,305	19,685,369
Current assets		2,259,732	4,483,643
Total assets		22,039,037	24,169,012
Equity		2,268,554	2,304,278
of which issued capital		622,027	622,027
Liabilities		19,770,483	21,864,734
Total equity and liabilities		22,039,037	24,169,012

€000	RESULTS OF OPERATIONS	2014	2013
Operating income		3,646,013	3,565,855
Operating costs		-2,217,086	-2,112,734
Operating profit/(loss)		1,428,927	1,453,121
Profit/(Loss) for the period		703,531	809,810

1. Key performance indicators for subsidiaries, associates and joint ventures pursuant to art. 2429, paragraphs 3 and 4 of the Italian Civil Code

Fiumicino Energia Srl

€000	FINANCIAL POSITION	31 December 2015	31 December 2014
Non-current assets		4,200	4,332
of which non-current investments		266	266
Current assets		5,677	4,209
Other assets		9 6	109
Total assets		9,973	8,650
Equity		9,343	8,117
of which issued capital		742	742
Provisions and post-employment benefits		1 3	1 0
Payables		617	523
Other liabilities		-	-
Total equity and liabilities		9,973	8,650

€000	RESULTS OF OPERATIONS	2015	2014
Value of production		6,502	8,022
Costs of production		-4,779	-4,546
Operating profit/(loss)		1,723	3,476
Profit/(Loss) for the period		1,226	2,139

Mizard Srl

€000	FINANCIAL POSITION	31 December 2015	31 December 2014
Non-current assets		-	-
of which non-current investments		-	-
Current assets		1 4	1 5
Other assets		-	-
Total assets		1 4	1 5
Equity		1 4	1 5
of which issued capital		1 0	1 0
Provisions and post-employment benefits		-	-
Payables		-	-
Other liabilities		-	-
Total equity and liabilities		1 4	1 5

€000	RESULTS OF OPERATIONS	2015	2014
Value of production		-	-
Costs of production		-1	-1
Operating profit/(loss)		-1	-1
Profit/(Loss) for the period		- 1	- 1

Pavimental SpA

€000	FINANCIAL POSITION	31 December 2015	31 December 2014
Non-current assets		58,290	40,625
of which non-current investments		5,397	5,396
Current assets		313,007	327,397
Other assets		6,038	4,029
Total assets		377,335	372,051
Equity		49,295	41,537
of which issued capital		10,116	10,116
Provisions and post-employment benefits		11,356	9,661
Payables		316,641	320,848
Other liabilities		4 3	5
Total equity and liabilities		377,335	372,051

€000	RESULTS OF OPERATIONS	2015	2014
Value of production		510,984	402,122
Costs of production		-495,441	-393,786
Operating profit/(loss)		15,543	8,336
Profit/(Loss) for the period		7,764	3,047

SPEA Engineering SpA (1)

€000	FINANCIAL POSITION	31 December 2015	31 December 2014
Non-current assets		6,913	6,944
of which non-current investments		634	634
Current assets		164,753	126,983
Other assets		840	613
Total assets		172,506	134,540
Equity		87,370	60,132
of which issued capital		6,966	5,160
Provisions and post-employment benefits		23,954	21,061
Payables		61,182	53,347
Other liabilities		-	-
Total equity and liabilities		172,506	134,540
€000	RESULTS OF OPERATIONS	2015	2014
Value of production		109,508	79,045
Costs of production		-84,627	-63,143
Operating profit/(loss)		24,881	15,902
Profit/(Loss) for the period		16,408	9,772

(1) Amounts for 2014 refer to Spea Ingegneria Europea, which absorbed ADR Engineering SpA, with effect from 1 June 2015, changing its name to Spea Engineering SpA.

1. Key performance indicators for subsidiaries, associates and joint ventures pursuant to art. 2429, paragraphs 3 and 4 of the Italian Civil Code

Associates and joint ventures

PuneSolapur Expressways Private Ltd

		31 March	31 March
THOUSANDS OF RUPEES	FINANCIAL POSITION	2015	2014
Non-current assets		13,421,264	12,698,167
Current assets		270,162	322,554
Total assets		13,691,426	13,020,721
Equity		3,698,483	3,797,544
of which issued capital		47,734	47,734
Liabilities		9,992,943	9,223,177
Total equity and liabilities		13,691,426	13,020,721

		1 April 2014 -	1 April 2013 -
THOUSANDS OF RUPEES	RESULTS OF OPERATIONS	31 March	31 March
		2015	2014
Operating income		1,231,619	1,010,366
Operating costs		-422,228	-401,254
Operating profit/(loss)		809,391	609,112
Profit/(Loss) for the period		-187,994	-136,386

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