Earnings Release • Mar 12, 2018
Earnings Release
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| Informazione Regolamentata n. 0097-30-2018 |
Data/Ora Ricezione 12 Marzo 2018 17:14:23 |
MTA | |
|---|---|---|---|
| Societa' | : | COFIDE | |
| Identificativo Informazione Regolamentata |
: | 100040 | |
| Nome utilizzatore | : | COFIDEN03 - Speciale | |
| Tipologia | : | 1.1 | |
| Data/Ora Ricezione | : | 12 Marzo 2018 17:14:23 | |
| Data/Ora Inizio Diffusione presunta |
: | 12 Marzo 2018 17:14:24 | |
| Oggetto | : | € 2,796.7 million (+6.7%) | COFIDE Group: revenues higher in 2017 at |
| Testo del comunicato |
Vedi allegato.
Board of Directors approves results as of December 31 2017
| (in millions of €) | |||
|---|---|---|---|
| 2016 | 2017 | Δ% | |
| Revenues | 2,620.7 | 2,796.7 | +6.7% |
| EBITDA | 257.1 | 289 | +12.4% |
| Net result | 21.2 | (3.0) | |
| Net debt (end of period) | 166.9 | 303.6 |
Milan, March 12 2018 - The Board of Directors of COFIDE-Gruppo De Benedetti S.p.A., which met today under the chairmanship of Rodolfo De Benedetti, has approved the proposed financial statements and the consolidated financial statements for the year ended December 31 2017. The Board also approved the consolidated Non-Financial Statement (NFS) for the year 2017, in compliance with the terms of Legislative Decree no. 254/2016.
COFIDE is the controlling shareholder of CIR-Compagnie Industriali Riunite S.p.A., the company at the head of an industrial group active mainly in the automotive components sector (Sogefi), in media (GEDI Gruppo Editoriale) and in healthcare (KOS). The COFIDE group also has financial investments in Jargonnant, the private equity fund specializing in real estate assets, and in Three Hills Decalia, the investment fund that supports the growth of small and medium enterprises in Europe.
The revenues of the COFIDE group for 2017 totalled € 2,796.7 million, and were up by 6.7% from € 2,620.7 million in 2016.
EBITDA came in at € 289 million (10.3% of sales revenues), up by 12.4% compared to € 257.1 million (9.8% of sales) in 2016. The figure benefited from the higher EBITDA of the CIR group.
In 2017 the COFIDE group reported a net loss of € 3 million compared to net income of € 21.2 million in 2016. The result was determined by the negative contribution of the subsidiary CIR of € 3.3 million (positive for € 18.4 million in 2016) and by the positive contribution of the parent company of the group COFIDE S.p.A. for € 0.3 million (positive for € 2.8 million in 2016). CIR reported a consolidated net loss of € 5.9 million compared to earnings of € 33.8 million in the previous year, as an effect of the tax charge of an extraordinary nature incurred by the subsidiary GEDI for the settlement of a dispute pending in the Court of Cassation for events going back to 1991. The impact of this charge pro-rata on the net result of CIR was a negative € 65.5 million. Excluding this charge, the consolidated net result of the COFIDE group would have been a positive € 33.3 million.
The consolidated net financial debt of the COFIDE group amounted to € 303.6 million at December 31 2017 versus € 166.9 million at December 31 2016. The difference was due mainly to the disbursement made by GEDI to settle its tax dispute (€ 140.2 million).
The net financial debt of the parent company COFIDE S.p.A. stood at € 31.1 million at December 31 2017 (€ 23.3 million at December 31 2016). The increase was due mainly to the buyback of own shares (€ 11.4 million).
Total equity amounted to € 1,480.8 million at December 31 2017, down from € 1,506.9 million at December 31 2016.
The equity of the group stood at € 524.7 million at December 31 2017, down from € 563.4 million at December 31 2016. The change was mainly due to the loss for the year (€ 3 million), to the dilution in GEDI (€ 14.5 million), resulting from the merger of the ITEDI group, the distribution of dividends (€ 10.1 million) and the buyback of own shares (€ 11.4 million).
The equity of the parent company of the group COFIDE S.p.A. amounted to € 562.2 million at December 31 2017, unchanged from the end of 2016. The equity increased with the result for the year of € 14.2 million and the change in the fair value reserve of € 7.3 million and decreased with the distribution of dividends of € 10.1 million and the buyback of own shares for € 11.4 million.
The value of the investment in the Jargonnant fund was € 3.6 million at December 31 2017 compared to € 6.3 million at the end of 2016, following distributions and repayments of capital. The COFIDE group has also invested in the Three Hills Decalia fund, which specializes in small and medium enterprises in Europe: the value of the investment at December 31 2017 was € 6.6 million (€ 5.6 million at the end of 2016).
At December 31 2017 the COFIDE group had 15,885 employees (14,329 at December 31 2016).
Regarding the performance of the COFIDE group in 2018, in the components sector the process of development is expected to continue producing a higher result, despite the further increase in the cost of steel; in the media sector the evidence available today does not allow us to forecast any significantly different market evolution than that of 2017. The group will be committed to achieving all the advantages deriving from the merger with ITEDI with action aimed at preserving profitability in a difficult market; in healthcare there is expected to be a rise in sales revenues and profit margins and business development will continue particularly in Italy both externally (acquisitions) and internally (greenfield development projects).
The Board of Directors has decided to put before the Annual General Meeting of the Shareholders a proposed dividend of € 0.014 per share, unchanged from last year. The dividend will be paid out on June 13 2018 with detachment of coupon no. 32 on June 11 and record date June 12.
The Annual General Meeting of the Shareholders has been convened for April 26 2018 at the first call and for April 27 2018 at the second call. At today's meeting the Board resolved:
• To put before the Shareholders' Meeting a motion to cancel and renew the Board's authorization for a period of 18 months to buy back a maximum of 70 million of the Company's own shares at a unit price that cannot be more than 10% higher or lower than the benchmark price recorded by the shares on regulated markets on the trading day preceding each single buyback transaction or the date on which the price is fixed. In any case, when the shares are bought back in the regulated market, the price must not be higher than the higher of the price of the last independent transaction and the highest current independent bid price on the same market, in compliance with what is set out in EU Delegated Regulation no. 2016/1052. The main reasons why this authorization is being renewed are: to fulfil the obligations resulting from possible stock option plans or other awards of shares of the Company to employees or members of the Board of Directors of COFIDE or its subsidiaries; to fulfil any obligations resulting from debt instruments that are convertible into or exchangeable with equity instruments; to have a portfolio of own shares to use as consideration in any possible extraordinary transactions, even those involving an exchange of equity holdings with other entities within the scope of transactions of interest to the Company (a so-called "stock of securities"); to support market liquidity of the shares; to take advantage of opportunities for creating value, as well as investing liquidity efficiently in relation to the market trend; for any other purpose qualified by the competent Authorities as admitted market practice in accordance with applicable European or domestic rules, and with the procedures established therein.
The Board of Directors also voted to submit to the Annual General Meeting of the Shareholders, in an extraordinary session:
***
For further details about the results of the subsidiary CIR, see the press release published by the company today (goo.gl/LFD1Hr).
***
The executive responsible for the preparation of the company's financial statements, Giuseppe Gianoglio, hereby declares, in compliance with the terms of paragraph 2 Article 154 bis of the Finance Consolidation Act (TUF), that the figures contained in this press release correspond to the results documented in the company's accounts and general ledger.
***
Contacts: CIR Group Communication Department Mariella Speciale Tel.: +39 02 722701 e-mail: [email protected] www.cofide.it
Below the meaning and content are given of the "alternative performance indicators", not envisaged by IFRS accounting standards but used in this press release to provide a better evaluation of the economic and financial performance of the COFIDE group.
***
Attached are key figures from the consolidated statement of financial position and income statement
| (in thousands of euro) | |
|---|---|
| NON-CURRENT ASSETS 2,220,109 2,070,459 INTANGIBLE ASSETS 1,138,329 988,003 TANGIBLE ASSETS 691,148 671,159 INVESTMENT PROPERTY 19,434 20,144 INVESTMENTS CONSOLIDATED USING THE EQUITY METHOD 125,181 129,987 OTHER EQUITY INVESTMENTS 12,249 5,323 OTHER RECEIVABLES 56,874 79,099 of which with related parties () -- 1,644 SECURITIES 79,511 85,009 DEFERRED TAX ASSETS 97,383 91,735 CURRENT ASSETS 1,347,959 1,349,077 INVENTORIES 139,072 137,406 CONTRACTED WORK IN PROGRESS 36,536 40,947 TRADE RECEIVABLES 472,614 414,246 of which with related parties () 1,677 1,542 OTHER RECEIVABLES 105,207 92,863 of which with related parties () 105 105 FINANCIAL RECEIVABLES 38,986 30,183 SECURITIES 57,228 66,157 AVAILABLE-FOR SALE FINANCIAL ASSETS 235,251 234,012 CASH AND CASH EQUIVALENTS 263,065 333,263 ASSETS HELD FOR DISPOSAL 3,418 3,418 TOTAL ASSETS 3,571,486 3,422,954 LIABILITIES AND SHAREHOLDERS' EQUITY 31.12.2017 31.12.2016 SHAREHOLDERS' EQUITY 1,480,773 1,506,896 SHARE CAPITAL 350,011 359,605 RESERVES 79,861 95,041 RETAINED EARNINGS (LOSSES) 97,758 87,519 NET INCOME (LOSS) FOR THE YEAR (2,966) 21,249 EQUITY OF THE GROUP 524,664 563,414 MINORITY SHAREHOLDERS' EQUITY 956,109 943,482 NON-CURRENT LIABILITIES 1,033,504 975,300 BONDS 365,112 283,742 OTHER BORROWINGS 281,863 311,815 OTHER PAYABLES 6,829 15,175 DEFERRED TAX LIABILITIES 171,068 149,833 PERSONNEL PROVISIONS 139,735 131,058 PROVISIONS FOR RISKS AND LOSSES 68,897 83,677 CURRENT LIABILITIES 1,057,209 940,758 BANK LOANS 17,551 12,771 BONDS 20,168 20,980 OTHER BORROWINGS 213,458 201,179 TRADE PAYABLES 469,451 433,354 of which to related parties () 1,830 2,189 OTHER PAYABLES 265,337 199,697 PROVISIONS FOR RISKS AND LOSSES 71,244 72,777 LIABILITIES HELD FOR DISPOSAL -- -- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 3,571,486 3,422,954 |
ASSETS | 31.12.2017 | 31.12.2016 |
|---|---|---|---|
(in thousands of euro)
| 2017 | 2016 | |||
|---|---|---|---|---|
| REVENUES | 2,796,698 | 2,620,680 | ||
| CHANGE IN INVENTORIES | (4,268) | 5,460 | ||
| COSTS FOR THE PURCHASE OF GOODS | (1,046,116) | (988,180) | ||
| COSTS FOR SERVICES | (674,459) | (614,406) | ||
| of which from related parties (*) | (2,573) | (6,272) | ||
| PERSONNEL COSTS | (732,661) | (712,409) | ||
| OTHER OPERATING INCOME | 30,907 | 26,812 | ||
| of which from related parties (*) | 1,949 | 1,778 | ||
| OTHER OPERATING COSTS | (81,059) | (80,853) | ||
| of which with related parties (*) | -- | -- | ||
| AMORTIZATION, DEPRECIATION AND WRITE-DOWNS | (136,176) | (129,277) | ||
| OPERATING RESULT | 152,866 | 127,827 | ||
| FINANCIAL INCOME | 9,594 | 13,058 | ||
| of which from related parties (*) | 3 | 15 | ||
| FINANCIAL EXPENSE | (59,810) | (61,352) | ||
| DIVIDENDS | 5,373 | 11,557 | ||
| GAINS FROM TRADING SECURITIES | 26,391 | 16,582 | ||
| LOSSES FROM TRADING SECURITIES | (156) | (668) | ||
| PART OF INCOME (LOSS) OF INVESTMENTS CONSOLIDATED | ||||
| USING THE EQUITY METHOD | (524) | 849 | ||
| ADJUSTMENTS TO THE VALUE OF FINANCIAL ASSETS | (3,998) | 3,827 | ||
| RESULT BEFORE TAXES | 129,736 | 111,680 | ||
| INCOME TAXES | (180,718) | (53,192) | ||
| RESULT FROM OPERATIONS DESTINED TO CONTINUE | (50,982) | 58,488 | ||
| NET INCOME (LOSS) FROM ASSETS HELD FOR DISPOSAL | 7,594 | 2,000 | ||
| NET INCOME (LOSS) FOR THE YEAR INCLUDING MINORITY INTERESTS | (43,388) | 60,488 | ||
| - NET LOSS (INCOME) OF MINORITY INTERESTS | 40,422 | (39,239) | ||
| - NET INCOME (LOSS) OF THE GROUP | (2,966) | 21,249 | ||
| BASIC EARNINGS (LOSS) PER SHARE (in euro) | (0.0042) | 0.0295 | ||
| DILUTED EARNINGS (LOSS) PER SHARE (in euro) | (0.0042) | 0.0295 |
(in thousands of euro)
| 2017 | 2016 | |
|---|---|---|
| OPERATING ACTIVITY | ||
| RESULT OF OPERATIONS DESTINED TO CONTINUE | (50,982) | 58,488 |
| ADJUSTMENTS: | ||
| AMORTIZATION, DEPRECIATION AND WRITE-DOWNS | 136,176 | 129,277 |
| ADJUSTMENT FOR INVESTMENTS CONSOLIDATED AT EQUITY | 4,806 | 2,356 |
| ACTUARIAL VALUATION OF STOCK OPTION/STOCK GRANT PLANS | 3,430 | 4,242 |
| CHANGE IN PERSONNEL PROVISIONS/PROVISIONS FOR RISKS AND LOSSES | (37,324) | (2,952) |
| ADJUSTMENTS TO THE VALUE OF FINANCIAL ASSETS | 3,998 | (3,827) |
| LOSSES (GAINS) ON SALE OF CAPITAL ASSETS | (22,877) | (20,966) |
| INCREASE (REDUCTION) IN NON-CURRENT RECEIVABLES/PAYABLES | (4,508) | 38,417 |
| (INCREASE) REDUCTION IN NET WORKING CAPITAL | 45,502 | 8,041 |
| CASH FLOWS FROM OPERATING ACTIVITY | 78,221 | 213,076 |
| of which: | ||
| - interest received (paid) | (32,945) | (33,133) |
| - income tax payments | (30,908) | (19,320) |
| INVESTMENT ACTIVITY | ||
| PRICE PAID FOR BUSINESS COMBINATIONS | (43,948) | (9,861) |
| NET FINANCIAL POSITION OF ACQUIRED COMPANIES | 9,983 | 53 |
| (PURCHASE) SALE OF MINORITY SHAREHOLDINGS | -- | (64,330) |
| (PURCHASE) SALE OF SECURITIES | 8,143 | 87,025 |
| SALE OF CAPITAL ASSETS | 14,223 | 23,636 |
| PURCHASE OF CAPITAL ASSETS | (136,158) | (123,874) |
| CASH FLOWS FROM INVESTMENT ACTIVITY | (147,757) | (87,351) |
| FINANCING ACTIVITY | ||
| INFLOWS FROM CAPITAL INCREASES | 1,546 | 11,487 |
| OTHER CHANGES IN EQUITY | (443) | (212) |
| DRAWDOWN/(EXTINGUISHMENT) OF OTHER FINANCIAL PAYABLES/RECEIVABLES | 37,319 | (47,574) |
| PURCHASE OF THE GROUP'S OWN SHARES | (25,421) | (19,387) |
| DIVIDENDS PAID | (29,860) | (44,673) |
| CASH FLOWS FROM FINANCING ACTIVITY | (16,859) | (100,359) |
| INCREASE (REDUCTION) IN NET CASH AND CASH EQUIVALENTS – CONTINUING | ||
| OPERATIONS | (86,395) | 25,366 |
| CASH FLOW/NET CASH AND CASH EQUIVALENTS AT START OF YEAR – ASSETS HELD FOR DISPOSAL |
11,417 | 2,000 |
| NET CASH AND CASH EQUIVALENTS AT START OF YEAR | 320,492 | 293,126 |
| NET CASH AND CASH EQUIVALENTS AT END OF YEAR | 245,514 | 320,492 |
| Attributable to the Shareholders of the parent company | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Net income | Minority | Total | |||||||
| Issued | less | Share | Reserves | Retained | (losses) | Total | Interests | ||
| (in thousands of euro) | own | earnings | |||||||
| Capital | shares | Capital | (losses) | for the year | |||||
| BALANCE AT DECEMBER 31 2015 | 359,605 | -- | 359,605 | 110,571 | 78,901 | 18,687 | 567,764 | 1,005,314 | 1,573,078 |
| Capital increases | -- | -- | -- | -- | -- | -- | -- | 11,487 | 11,487 |
| Dividends to Shareholders | -- | -- | -- | -- | (10,069) | -- | (10,069) | (34,604) | (44,673) |
| Retained earnings | -- | -- | -- | 18,687 | (18,687) | -- | -- | -- | |
| Effects of equity changes in subsidiaries | -- | -- | -- | (12,258) | -- | -- | (12,258) | (73,323) | (85,581) |
| Comprehensive result for the year | |||||||||
| Fair value measurement of hedging instruments | -- | -- | -- | 486 | -- | -- | 486 | 1,091 | 1,577 |
| Fair value measurement of securities | -- | -- | -- | (274) | -- | -- | (274) | 2,351 | 2,077 |
| Securities fair value reserve released to income statement |
-- | -- | -- | (314) | -- | -- | (314) | (260) | (574) |
| Effects of equity changes in subsidiaries | -- | -- | -- | 92 | -- | -- | 92 | 188 | 280 |
| Currency translation differences | -- | -- | -- | 751 | -- | -- | 751 | 852 | 1,603 |
| Actuarial gains (losses) | -- | -- | -- | (4,013) | -- | -- | (4,013) | (8,853) | (12,866) |
| Result for the year | -- | -- | -- | -- | 21,249 | 21,249 | 39,239 | 60,488 | |
| Total comprehensive result for the year | -- | -- | -- | (3,272) | -- | 21,249 | 17,977 | 34,608 | 52,585 |
| BALANCE AT DECEMBER 31 2016 | 359,605 | -- | 359,605 | 95,041 | 87,519 | 21,249 | 563,414 | 943,482 | 1,506,896 |
| Capital increases | -- | -- | -- | -- | -- | -- | -- | 85,198 | 85,198 |
| Dividends to Shareholders | -- | -- | -- | (10,069) | -- | (10,069) | (19,791) | (29,860) | |
| Retained earnings | -- | -- | -- | 941 | 20,308 | (21,249) | -- | -- | -- |
| Adjustment for own-share transactions | -- | (9,594) | (9,594) | (1,770) | -- | -- | (11,364) | -- | (11,364) |
| Effects of equity changes in subsidiaries | -- | -- | -- | (13,099) | -- | -- | (13,099) | 1,274 | (11,825) |
| Comprehensive result for the year | |||||||||
| Fair value measurement of hedging instruments | -- | -- | -- | 980 | -- | -- | 980 | 2,146 | 3,126 |
| Fair value measurement of securities | -- | -- | -- | 6,689 | -- | -- | 6,689 | (426) | 6,263 |
| Securities fair value reserve released to income statement |
-- | -- | -- | (852) | -- | -- | (852) | (685) | (1,537) |
| Effects of equity changes in subsidiaries | -- | -- | -- | (220) | -- | -- | (220) | (428) | (648) |
| Currency translation differences | -- | -- | -- | (8,450) | -- | -- | (8,450) | (15,458) | (23,908) |
| Actuarial gains (losses) | -- | -- | -- | 601 | -- | -- | 601 | 1,219 | 1,820 |
| Result for the year | -- | -- | -- | -- | -- | (2,966) | (2,966) | (40,422) | (43,388) |
| Total comprehensive result for the year | -- | -- | -- | (1,252) | -- | (2,966) | (4,218) | (54,054) | (58,272) |
| BALANCE AT DECEMBER 31 2017 | 359,605 | (9,594) | 350,011 | 79,861 | 97,758 | (2,966) | 524,664 | 956,109 | 1,480,773 |
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