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CIR Group

Earnings Release Jul 28, 2017

4434_10-q_2017-07-28_e8462b81-67d6-49b8-8773-b3beb5bcb8d4.pdf

Earnings Release

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Informazione
Regolamentata n.
0097-76-2017
Data/Ora Ricezione
28 Luglio 2017
16:58:30
MTA
Societa' : COFIDE
Identificativo
Informazione
Regolamentata
: 92411
Nome utilizzatore : COFIDEN03 - Ricco
Tipologia : 1.2
Data/Ora Ricezione : 28 Luglio 2017 16:58:30
Data/Ora Inizio
Diffusione presunta
: 28 Luglio 2017 16:58:31
Oggetto : Cofide: in H1 revenues at € 1,392.4 mln
(+5.6%), EBITDA at € 147.5 mln (+18.8%)
Testo del comunicato

Vedi allegato.

PRESS RELEASE

Board of Directors approves results as of June 30 2017

COFIDE GROUP: REVENUES AT € 1,392.4 MLN (+5.6%), EBITDA AT € 147.5 MLN (+18.8%) NET INCOME FOR THE FIRST HALF AT € 14.6 MLN (€ 17.5 MLN IN 2016)

Higher contribution to earnings by the subsidiary CIR (€ 14.9 million), lower contribution of the parent company of the group COFIDE S.p.A.

(in millions of €)
1H 2016 1H 2017 Δ%
Revenues 1,319.1 1,392.4 +5.6%
EBITDA 124.2 147.5 +18.8%
Net result 17.5 14.6
30/6 30/6
Net debt (end of period) 244.8 192.5

Financial highlights for 1H 2017

Milan, July 28 2017 - The Board of Directors of COFIDE-Gruppo De Benedetti S.p.A., which met today in Milan under the chairmanship of Rodolfo De Benedetti, approved the Semi-Annual Financial Report as of June 30 2017.

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 media sector (GEDI Gruppo Editoriale), automotive components (Sogefi) and healthcare (KOS). The COFIDE group also has financial investments in Jargonnant, the private equity fund specializing in real estate assets in Germany and Eastern Europe, and in Three Hills Decalia, the investment fund that supports the growth of small and medium European enterprises.

Consolidated results and results of the parent company

The revenues of the COFIDE group in the first half of 2017 totalled € 1,392.4 million, up by 5.6% from € 1,319.1 million in the same period of 2016. The increase reflects the performance of the revenues of the CIR group, driven mainly by the significant growth of Sogefi.

EBITDA came to € 147.5 million (10.6% of revenues), up by 18.8% from € 124.2 million (9.4% of revenues) in the first half of 2016. The figure benefited from the higher EBITDA of the CIR group.

In first half of 2017 the COFIDE group obtained net income of € 14.6 million, down from € 17.5 million in the same period of the previous year. This result consisted of a positive contribution of € 14.9 million from the subsidiary CIR, up from € 14.1 million in the first half of 2016, and the contribution substantially equal to zero of the parent company COFIDE S.p.A. (- € 0.3 million versus € 3.4 million in 2016).

The contribution of the parent company COFIDE S.p.A to consolidated earnings consists of the result obtained by the company in the period, a positive € 13.5 million, minus the dividends received from the subsidiary CIR S.p.A. (€ 13.8 million). In the first half of 2016 the net income of COFIDE S.p.A. had been € 19.4 million as an effect of higher financial income.

In the first half of 2017 the CIR group reported net income of € 27.1 million, up from € 25.9 million in the first half of 2016.

The consolidated net debt of the COFIDE group totalled € 192.5 million at June 30 2017 compared to € 166.9 million at December 31 2016 and € 244.8 million at June 30 2016.

The net financial debt of the parent company COFIDE S.p.A. came to € 29.5 million at June 30 2017 (€ 23.3 million at December 31 2016 and € 26.6 million at June 30 2016). The change in the first half was due to the increase resulting from the buyback of own shares for € 7.3 million and from net investment in private equity funds for € 1.8 million offset by the receipt of dividends, net of those paid out, for € 3.9 million.

Total consolidated equity stood at € 1,579.2 million at June 30 2017, up from € 1,506.9 million at December 31 2016.

The consolidated equity of the group amounted to € 539.1 million at June 30 2017 versus € 563.4 million at December 31 2016. The change was essentially due to the dilution resulting from the merger of the ITEDI Group into GEDI, the distribution of dividends and the buyback of own shares. These effects were partly offset by the results for the period.

The value of the investment in the Jargonnant fund was € 4.7 million at June 30 2017 compared to € 6.3 million at the end of 2016 after the distributions that took place in the first half of the year. The COFIDE group also has an investment in the Three Hills Decalia fund, specializing in small and medium enterprises in Europe: the value of the investment at June 30 2017 was € 6.6 million (€ 5.6 million at the end of 2016).

At June 30 2017 the COFIDE group had 14,613 employees (14,329 at December 31 2016).

Outlook for 2017

Regarding the performance of the COFIDE group for the whole year 2017, a positive result should be confirmed unless there are any extraordinary events that cannot for the moment be foreseen.

***

For further information on the results of the subsidiary CIR, see the press release published by the company today (goo.gl/ywTYFZ).

***

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 Salvatore Ricco Mariella Speciale Tel.: +39 02 722701 e-mail: [email protected] www.cofide.it

Alternative performance indicators

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.

  • EBITDA (gross operating margin): an indicator of operating performance calculated by adding "amortization, depreciation and write-downs" to the EBIT figure (earnings before financial items and taxes);
  • Consolidated net financial debt: an indicator of the financial structure of the group; it is the algebraic sum of financial receivables, securities, available-for-sale financial assets and cash and cash equivalents in current assets, of bonds and other borrowings in non-current liabilities, and of bank overdrafts, bonds and other borrowings in current liabilities

Attached are key figures from the consolidated statement of financial position and income statement.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(in thousands of euro)

NON-CURRENT ASSETS
2,187,981
2,070,459
INTANGIBLE ASSETS
1,108,989
988,003
TANGIBLE ASSETS
682,224
671,159
INVESTMENT PROPERTY
19,767
20,144
INVESTMENTS IN COMPANIES CONSOLIDATED AT EQUITY
125,041
129,987
OTHER EQUITY INVESTMENTS
6,547
5,323
OTHER RECEIVABLES
78,465
79,099
of which with related parties
1,644
1,644
SECURITIES
78,569
85,009
DEFERRED TAXES
88,379
91,735
CURRENT ASSETS
1,376,325
1,349,077
INVENTORIES
145,052
137,406
CONTRACTED WORK IN PROGRESS
43,034
40,947
TRADE RECEIVABLES
462,697
414,246
of which with related parties
1,168
1,542
OTHER RECEIVABLES
108,587
92,863
of which with related parties
105
105
FINANCIAL RECEIVABLES
19,211
30,183
SECURITIES
64,834
66,157
AVAILABLE-FOR-SALE FINANCIAL ASSETS
232,571
234,012
CASH AND CASH EQUIVALENTS
300,339
333,263
ASSETS HELD FOR DISPOSAL
3,418
3,418
TOTAL ASSETS
3,567,724
3,422,954
30.06.2017
31.12.2016
LIABILITIES AND EQUITY
EQUITY
1,579,196
1,506,896
ISSUED CAPITAL
359,605
359,605
less OWN SHARES
(6,170)
--
SHARE CAPITAL
353,435
359,605
RESERVES
73,227
95,041
RETAINED EARNINGS (LOSSES)
97,759
87,519
NET INCOME (LOSS) FOR THE YEAR
14,629
21,249
EQUITY OF THE GROUP
539,050
563,414
MINORITY SHAREHOLDERS' EQUITY
1,040,146
943,482
NON-CURRENT LIABILITIES
1,029,660
975,300
BONDS
266,201
283,742
OTHER BORROWINGS
345,013
311,815
OTHER PAYABLES
15,391
15,175
DEFERRED TAXES
180,744
149,833
PERSONNEL PROVISIONS
140,186
131,058
PROVISIONS FOR RISKS AND LOSSES
82,125
83,677
CURRENT LIABILITIES
958,868
940,758
BANK OVERDRAFTS
18,273
12,771
BONDS
19,979
20,980
OTHER BORROWINGS
159,980
201,179
TRADE PAYABLES
455,579
433,354
of which with related parties
1,208
2,189
OTHER PAYABLES
215,694
199,697
PROVISIONS FOR RISKS AND LOSSES
89,363
72,777
LIABILITIES HELD FOR DISPOSAL
--
--
ASSETS 30.06.2017 31.12.2016
TOTAL LIABILITIES AND EQUITY 3,567,724 3,422,954

CONSOLIDATED INCOME STATEMENT

(in thousands of euro)

1st Half
2017
1st Half
2016
SALES REVENUES 1,392,360 1,319,146
of which from related parties -- --
CHANGE IN INVENTORIES 2,487 1,325
COSTS FOR THE PURCHASE OF GOODS (536,702) (498,046)
of which from related parties -- --
COSTS FOR SERVICES (326,481) (307,988)
of which from related parties (1,168) (2,703)
PERSONNEL COSTS (362,817) (363,987)
OTHER OPERATING INCOME 13,157 11,980
of which from related parties 945 834
OTHER OPERATING COSTS (34,461) (38,190)
of which with related parties -- --
AMORTIZATION, DEPRECIATION AND WRITEDOWNS (65,186) (58,776)
INCOME BEFORE FINANCIAL ITEMS
AND TAXES ( E B I T ) 82,357 65,464
FINANCIAL INCOME 5,253 5,935
of which from related parties 1 19
FINANCIAL EXPENSE (26,657) (31,018)
of which with related parties -- --
DIVIDENDS 40 7,953
of which with related parties -- --
GAINS FROM TRADING SECURITIES 9,104 10,053
LOSSES FROM TRADING SECURITIES (33) (538)
ADJUSTMENTS TO THE VALUE OF INVESTMENTS
CONSOLIDATED AT EQUITY (664) 2,186
ADJUSTMENTS TO THE VALUE OF FINANCIAL ASSETS 1,316 1,433
NET INCOME(LOSS) BEFORE TAXES 70,716 61,468
INCOME TAXES (24,723) (17,202)
RESULT BEFORE TAXES FROM OPERATING ACTIVITY 45,993 44,266
NET INCOME (LOSS) FROM ASSETS HELD FOR DISPOSAL 1,000 1,000
NET INCOME (LOSS) FOR PERIOD INCLUDING MINORITY INTERESTS 46,993 45,266
- LOSS (INCOME) OF MINORITY SHAREHOLDERS (32,364) (27,723)
- NET INCOME (LOSS) OF THE GROUP 14,629 17,543
BASIC EARNINGS (LOSS) PER SHARE (in euro) 0.0205 0.0244
DILUTED EARNINGS (LOSS) PER SHARE (in euro) 0.0205 0.0244

CONSOLIDATED CASH FLOW STATEMENT

(in thousands of euro)

1st Half
2017
1st Half
2016
OPERATING ACTIVITY
NET INCOME/(LOSS) FOR THE PERIOD INCLUDING MINORITY INTERESTS CONTINUING
OPERATIONS 45,993 44,266
ADJUSTMENTS:
AMORTIZATION, DEPRECIATION AND WRITEDOWNS 65,186 58,776
SHARE OF THE RESULT OF COMPANIES CONSOLIDATED AT EQUITY 4,946 (2,186)
ACTUARIAL VALUATION OF STOCK OPTION/STOCK GRANT PLANS 1,792 2,405
CHANGE IN PERSONNEL PROVISIONS/PROVISIONS FOR RISKS AND LOSSES (5,302) (13,201)
ADJUSTMENTS TO THE VALUE OF FINANCIAL ASSETS (1,316) (1,433)
LOSSES (GAINS) ON SALE OF FIXED ASSET SECURITIES (6,028) (4,720)
INCREASE (REDUCTION) IN NON-CURRENT RECEIVABLES AND PAYABLES 10,786 10,804
(INCREASE) REDUCTION IN NET WORKING CAPITAL (37,357) (13,199)
CASH FLOW FROM OPERATING ACTIVITY CONTINUING OPERATIONS 78,700 81,512
of which:
- interest received (paid) (16,897) (19,922)
- income tax payments (12,601) (3,740)
INVESTMENT ACTIVITY
CONSIDERATION FOR BUSINESS COMBINATIONS (3,761) (100)
NET FINANCIAL POSITION OF ACQUIRED COMPANIES 9,053 --
PURCHASE OF MINORITY SHAREHOLDINGS -- (84,457)
(PURCHASE) SALE OF SECURITIES 4,195 74,438
PURCHASE OF FIXED ASSETS (47,538) (26,154)
CASH FLOW FROM INVESTMENT ACTIVITY CONTINUING OPERATIONS (38,051) (36,273)
FINANCING ACTIVITY
INFLOWS FROM CAPITAL INCREASES 973 10,696
OTHER CHANGES IN EQUITY (2,201) (11,429)
DRAWDOWN/(EXTINGUISHMENT) OF OTHER FINANCIAL PAYABLES/RECEIVABLES (32,334) (31,526)
BUYBACK OF OWN SHARES (16,751) (17,164)
DIVIDENDS PAID (29,762) (41,673)
CASH FLOW FROM FINANCING ACTIVITY CONTINUING OPERATIONS (80,075) (91,096)
INCREASE (REDUCTION) IN NET CASH AND CASH EQUIVALENTS CONTINUING
OPERATIONS (39,426) (45,857)
CASH FLOW/NET CASH AND CASH EQUIVALENTS AT START OF PERIOD DISCONTINUED
OPERATIONS 1,000 1,000
NET CASH AND CASH EQUIVALENTS AT START OF PERIOD 320,492 293,126
NET CASH AND CASH EQUIVALENTS AT END OF PERIOD 282,066 248,269

STATEMENT OF CHANGES IN CONSOLIDATED EQUITY

Attributable to the Shareholders of the parent company
Issued less own Share Reserves Retained Net income Total Minority Total
(in thousands of euro) capital shares capital earnings
(losses)
(losses)
for the year
interests
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 -- -- -- -- -- -- -- 84,625 84,625
Dividends to Shareholders -- -- -- -- -- (10,069) (10,069) (19,693) (29,762)
Retained earnings -- -- -- 940 10,240 (11,180) -- -- --
Adjustment for own share transactions -- (6,170) (6,170) (1,179) -- -- (7,349) -- (7,349)
Effects of equity changes in subsidiaries -- -- -- (15,382) -- -- (15,382) 7,232 (8,150)
Comprehensive result for the year
Fair value measurement of hedging instruments -- -- -- 620 -- -- 620 1,355 1,975
Fair value measurement of securities -- -- -- (2,032) -- -- (2,032) (1,202) (3,234)
Securities fair value reserve released to income statement -- -- -- (439) -- -- (439) (358) (797)
Effects of equity changes in subsidiaries -- -- -- (94) -- -- (94) (331) (425)
Currency translation differences -- -- -- (4,987) -- -- (4,987) (8,950) (13,937)
Actuarial gains (losses) -- -- -- 739 -- -- 739 1,622 2,361
Result for the year -- -- -- -- -- 14,629 14,629 32,364 46,993
Total comprehensive result for the year -- -- -- (6,193) -- 14,629 8,436 24,500 32,936
BALANCE AT JUNE 30 2017 359,605 (6,170) 353,435 73,227 97,759 14,629 539,050 1,040,146 1,579,196

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