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Mundys (formerly: Atlantia SpA)
Quarterly Report • May 13, 2021
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Quarterly Report
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Press Release
ATLANTIA GROUP'S QUARTERLY RESULTS FOR THREE MONTHS ENDED 31 MARCH 2021
Consolidated results for Q1 2021
- Q1 2021 results reflect impact of Covid-19 pandemic on traffic registered by Group's operators
- Operating revenue of €2,025m down €185m (8%)
- EBITDA of €1,124m down €147m (12%)
- Loss attributable to owners of Atlantia amounts to €67m
- Operating cash flow of €581m down €209m (26%)
- Capital expenditure of €384m up €23m (6%)
- Net debt of €38,264m down €974m
- Issue of bonds worth over €2bn and new bank borrowings of more than €0.6bn (further issues of €1.1bn in April and May 2021, including Aeroporti di Roma's first sustainability-linked bond)
- Liquidity totals €7.2bn as at 31 March 2021, in addition to committed lines of credit totalling €7.7bn (further lines worth €0.8bn agreed in April 2021)
- In line with strategy presented with Integrated Annual Report, acquisition of stake in Volocopter GmbH, a developer of new urban mobility solutions, was completed on 1 April 2021
- Sale of 49% stake in Telepass completed on 14 April 2021 (proceeds of €1.1bn)
Investor Relations e-mail: [email protected]
Media Relations e-mail: [email protected]
- On 30 April, Board of Directors decided to call an Ordinary General Meeting of shareholders for 31 May 2021 to examine latest offer from CDP Consortium to acquire stake in Autostrade per l'Italia
- Repayment of €0.75bn loan linked to funded collar on Hochtief shares on 4 May 2021, reducing interest in company from 23.9% to 15.9%
Roma, 13 May 2021 – Today's meeting of the Board of Directors of Atlantia SpA, chaired by Fabio Cerchiai, has approved the Atlantia Group's quarterly results announcement for the three months ended 31 March 2021 ("Q1 2021").
Financial review for the Atlantia Group
Scope of consolidation
The Group's scope of consolidation as at 31 March 2021 has not undergone significant changes with respect to 31 December 2020. However, it should be noted that amounts for the first quarter of 2021 include the contributions of Red de Carreteras de Occidente (RCO) and Elizabeth River Crossings (ERC), acquired by Abertis Infraestructuras in June and December 2020, respectively.
Disclosure on the impact of the Covid-19 pandemic
Since the end of February 2020, the restrictions on movement, imposed by many governments in response to the global spread of the Covid-19 pandemic, have resulted in significant reductions in the volumes of traffic using the motorways and airports operated under concession by the Group, with the impacts differing across the various geographies.
The performance of traffic in the first quarter of 2021, compared with the first quarter of 2020, is shown below.
In terms of the infrastructure operated by the Group, airport operators (traffic down 81.3%) were more affected than motorway operators (traffic down 6.7%).
With regard to motorway traffic, the most significant reductions were registered by the European operators as opposed to those in Chile, Brazil and Mexico. This primarily reflects the different timing of the spread of the Covid-19 pandemic and of the impact of the resulting restrictions on movement imposed by the various governments.
Reclassified consolidated income statement
| INCREASE/ | ||||
|---|---|---|---|---|
| €M | Q1 2021 | Q1 2020 | (DECREASE) | |
| ABSOLUTE | % | |||
| Motorway toll revenue | 1,694 | 1,751 | -57 | -3% |
| Aviation revenue | 32 | 120 | -88 | -73% |
| Other operating revenue | 299 | 339 | -40 | -12% |
| Total operating revenue | 2,025 | 2,210 | -185 | -8% |
| Cost of materials and external services | -580 | -529 | -51 | 10% |
| Concession fees | -97 | -105 | 8 | -8% |
| Staff costs | -334 | -328 | -6 | 2% |
| Operating change in provisions | 110 | 23 | 87 | n/s |
| Total operating costs | -901 | -939 | 38 | -4% |
| Gross operating profit (EBITDA) | 1,124 | 1,271 | -147 | -12% |
| Amortisation, depreciation, impairment losses and reversals of impairment losses |
-983 | -919 | -64 | 7% |
| Operating profit (EBIT) | 141 | 352 | -211 | -60% |
| Financial expenses, net | -264 | -375 | 111 | -30% |
| Share of profit/(loss) of investees accounted for using the equity method |
-9 | -2 | -7 | n/s |
| Profit/(Loss) before tax | -132 | -25 | -107 | n/s |
| Income tax benefits/(expense) | 14 | -4 | 18 | n/s |
| Loss for the period | -118 | -29 | -89 | n/s |
| Loss attributable to non-controlling interests | -51 | -19 | -32 | n/s |
| Loss attributable to owners of the parent | -67 | -10 | -57 | n/s |
Operating revenue for the first quarter of 2021 totals €2,025m, a reduction of €185m (8%) compared with the first quarter of 2020 (€2,210m). This reflects the impact of the restrictions on movement introduced in response to the Covid-19 pandemic from the beginning of March 2020, with an estimated impact of €200m.
Motorway toll revenue of €1,694m is down €57m compared with the first quarter of 2020 (€1,751m). The decline reflects the reduction in traffic on the networks operated by the Autostrade per l'Italia group (down 10.6%), the Abertis group's operators (down 4.3%) and the other overseas operators (down 9.1%), as well as the negative impact of the fall in the value of the Brazilian real (down 25%) against the euro, amounting to €48m, partially offset by the contributions from RCO and ERC, totalling €114m.
Aviation revenue of €32m is down €88m (73%) compared with first quarter of 2020, due to the above impact of the Covid-19 pandemic on traffic at Aeroporti di Roma (down 83.9%) and at Aéroports de la Côte d'Azur (down 72.1%).
Other operating income, amounting to €299m, is down €40m (12%) compared with the first quarter of 2020, essentially due to the reduction in revenue from motorway service areas and airport sub-concessions (€32m).
Operating costs of €901m are down €38m compared with the first quarter of 2020 (€939m).
The cost of materials and external services, amounting to €580m, is up €51m compared with the comparative period (€529m). This reflects:
- the increased costs incurred by Autostrade per l'Italia ("ASPI"), totalling €105m, essentially in connection with the company's network surveillance, inspection, maintenance and safety programmes, above all regarding tunnels (€67m) and additional costs connected with reconstruction of the Polcevera road bridge, amounting to €38m;
- a reduction in costs at Aeroporti di Roma and Aéroports de la Côte d'Azur (€17m), reflecting the reduced volume of traffic using Fiumicino and Nice airports;
- the positive impact of exchange rate movements (€16m), primarily the decline in the value of the Brazilian real;
- reduced costs at Pavimental (€18m), linked to the reduction in external revenue.
Concession fees of €97m are down €8m (8%) compared with the first quarter of 2020, primarily due to the lower volume of traffic.
Staff costs of €334m are up on the comparative period (€328m in the first quarter of 2020). This reflects the increase in the fair value of the rights vesting under incentive plans linked to the value of Atlantia's shares, after reductions in staff costs registered above all by the airport operators.
The operating change in provisions in the first quarter of 2021 generated net income of €110m (€23m in the first quarter of 2020) This primarily reflects the use of provisions for the repair and replacement of motorway infrastructure to fund work on reconstruction of the Polcevera road bridge (€78m).
EBITDA of €1,124m is down €147m (12%) compared with the first quarter of 2020 (€1,271m).
Amortisation and depreciation, impairment losses and reversals of impairment losses, totalling €983m, is up €64m compared with the same period of 2020, primarily due to the contributions of RCO and ERC (€42m).
EBIT of €141m is down €211m compared with first quarter of 2020 (€352m).
Net financial expenses of €264m are down €111m compared with the first quarter of 2020 (€375m). This essentially reflects:
- a reduction in expenses on derivatives incurred by Atlantia (€98m), linked to the positive movement in the fair value of Interest Rate Swaps following a rise in interest rates in the first quarter of 2021 and the opposing movement in the comparative period;
- the reduced impairment loss on financial assets deriving from concession rights guaranteed by the Grantor to the Argentine operators, GCO and Ausol (€69m);
- the contribution of RCO and ERC (€65m).
The tax benefit for the first quarter of 2021 amounts to €14m and is linked to the pre-tax loss for the period (tax expense of €4m in the first quarter of 2020).
The resulting loss for the first quarter of 2021 amounts to €118m (€29m in the first quarter of 2020).
The loss for the year attributable to owners of the parent totals €67m (€10m for the first quarter of 2020).
Reclassified consolidated statement of financial position
| €M | 31 MARCH 2021 31 DECEMBER 2020 | INCREASE/ (DECREASE) |
|
|---|---|---|---|
| Intangible assets deriving from | 48,485 | 49,229 | -744 |
| concession rights | |||
| Goodwill | 12,785 | 12,785 | - |
| Property, plant and equipment and other intangible assets |
1,256 | 1,257 | -1 |
| Investments | 2,787 | 2,841 | -54 |
| Working capital (net of current provisions) | 519 | 307 | 212 |
| Provisions and commitments | -8,525 | -8,789 | 264 |
| Deferred tax liabilities, net | -3,833 | -3,868 | 35 |
| Other non-current assets and liabilities | -269 | -260 | -9 |
| NET INVESTED CAPITAL | 53,205 | 53,502 | -297 |
| Equity attributable to owners of the parent |
6,528 | 6,190 | 338 |
| Equity attributable to non-controlling interests |
8,413 | 8,074 | 339 |
| Equity | 14,941 | 14,264 | 677 |
| Bond issues | 32,765 | 31,673 | 1,092 |
| Medium/long-term borrowings | 16,202 | 18,690 | -2,488 |
| Other financial liabilities | 2,713 | 3,283 | -570 |
| Financial assets deriving from concession rights | -3,592 | -3,484 | -108 |
| Cash and cash equivalents | -7,249 | -8,385 | 1,136 |
| Other financial assets | -2,575 | -2,539 | -36 |
| Net debt | 38,264 | 39,238 | -974 |
| EQUITY AND NET DEBT | 53,205 | 53,502 | -297 |
Intangible assets deriving from concession rights, totalling €48,485m (€49,229m as at 31 December 2020), are down €744m. This primarily reflects the recognition of amortisation for the period (€896m, including €608m essentially attributable to the Abertis group's French, Spanish, Chilean and Brazilian operators), partially offset by investment of €148m.
The value of goodwill, totalling €12,785m, essentially refers to the Abertis group (€8,377m) and ASPI (€4,383m).
Investments, totalling €2,787m (€2,841m as at 31 December 2020), are down essentially due to the €54m decline in the fair value of the investment in Hochtief.
Working capital (net of current provisions) amounts to €519m, marking an improvement of €212m compared with 31 December 2020 (€307m). This is due to:
- a reduction in trading liabilities (€244m), primarily attributable to ASPI (€153m), essentially reflecting the decline in amounts payable to the operators of interconnecting motorways due to the decline in traffic and to the Abertis group (€92m), largely due to a reduction in amounts payable to suppliers;
- an increase in trading assets (€125m), primarily at Telepass (€84m) due to the increased volume of overseas sales in the first quarter of 2021;
- the net change in current tax assets and liabilities has resulted in a deterioration of €136m, primarily linked to tax credits for 2019 collected by Abertis HoldCo (€109m) and the recovery of payments on account paid by Abertis Infraestructuras on the sale of its investment in Hispasat (€44m).
Provisions and commitments of €8,525m are down €264m (€8,789m in the first quarter of 2020), primarily due to ASPI (€184m) and the use of provisions to fund work carried out during the first quarter of 2021.
Equity attributable to owners of the parent, amounting to €6,528m, is up €338m compared with 31 December 2020 (€6,190m). This primarily includes €363m representing the Group's share of the hybrid bonds issued by Abertis Infraestructuras Finance, partially offset by the reduction in the fair value of the investment in Hochtief, totalling €54m (the company's share price has fallen from €79.55 as at 31 December 2020 to €76.30 as at 31 March 2021).
The Atlantia Group's net debt amounts to €38,264m as at 31 March 2021 (down €974m from €39,238m as at 31 December 2020). This essentially reflects the issue of the second tranche of the above hybrid bonds by Abertis Infraestructuras Finance (€734m net of issue costs) and operating cash flow after capital expenditure in the quarter (€197m).
With regard to the financial position, the Group issued new bonds worth €2,051m, essentially attributable to Atlantia (a nominal value of €1,000m) and ASPI (a nominal value of €1,000m).
Financial assets deriving from concession rights, totalling €3,592m are primarily attributable to the Abertis group's operators (€2,046m), Grupo Costanera's Chilean operators (€1,093m) and Autostrade Meridionali's takeover rights, totalling €415m. These assets are up €108m as a result of discounting receivables primarily attributable to the Chilean and Spanish operators to present value (€60m) and due to movements in exchange rates (€47m), broadly linked to the increase in the value of the Chilean peso against the euro.
The residual weighted average term to maturity of the Group's debt is five years and nine months as at 31 March 2021, an improvement on the five years and seven months of 31 December 2020. After also taking into account the related hedges, fixed rate debt represents 84.2% of the total.
The weighted average cost of the Atlantia Group's medium/long-term borrowings in the first quarter of 2021, including differentials on hedging instruments, is 3.3%.
As at 31 March 2021, Group companies have cash reserves of €14,918m, consisting of:
- €7,249m in cash and/or investments maturing in the short term, including €831m attributable to Atlantia;
- €7,669m in committed lines of credit not drawn on, having an average residual drawdown period of approximately two years and five months. With regard to two committed lines of credit agreed by ASPI and Cassa Depositi e Prestiti ("CDP"), amounting to €1,300m, talks are continuing with the aim of assessing whether or not the suspensive conditions that would permit disbursement have been met.
Net financial debt, an indicator usually used by analysts and rating agencies to assess the Group's financial structure (and which, compared with net debt, primarily excludes financial assets), amounts to €41,543m as at 31 March 2021, a reduction of €327m compared with 31 December 2020 (€41,870m), essentially due to the above events.
| €M | Q1 2021 | Q1 2020 |
|---|---|---|
| Operating cash flow | 581 | 790 |
| Change in operating capital | -379 | 7 |
| Other changes in non-financial assets and liabilities | 162 | 502 |
| Net cash generated from operating activities (A) | 364 | 1,299 |
| Capital expenditure | -384 | -361 |
| Government grants related to assets held under concession | 1 | 2 |
| Increase in financial assets deriving from concession rights (related to capital expenditure) |
42 | 49 |
| Investment in consolidated companies, including net debt assumed | -4 | -2 |
| Proceeds from sale of property, plant and equipment, intangible assets and unconsolidated investments |
11 | 2 |
| Net change in other non-current assets | 19 | 32 |
| Net cash used in investment in non-financial assets (B) | -315 | -278 |
| Dividends declared by Group companies and payable to non-controlling shareholders | -19 | -17 |
| Distribution of reserves and returns of capital to non-controlling shareholders | - | -4 |
| Issue of equity instruments | 734 | - |
| Interest accrued on equity instruments | -12 | - |
| Net equity cash inflows/(outflows) (C) | 703 | -21 |
| Increase/(Decrease) in cash and cash equivalents during period (A+B+C) | 752 | 1,000 |
| Change in fair value of hedging derivatives | 119 | 13 |
| Non-cash financial income/(expenses) | 34 | 8 |
| Effect of foreign exchange rate movements on net debt and other changes | 69 | 231 |
| Other changes in net debt (D) | 222 | 252 |
| Decrease in net debt for period (A+B+C+D) | 974 | 1,252 |
| Net debt at beginning of period | 39,238 | 36,722 |
| Net debt at end of period | 38,264 | 35,470 |
Statement of changes in consolidated net debt
Operating cash flow amounted to €581m in the first quarter of 2021, a reduction of €209m compared with the comparative period. This essentially reflects the reduction in motorway and airport traffic following extension of the restrictions on movement imposed in response to the Covid-19 pandemic.
Net cash generated from operating activities in the first quarter of 2021 amounts to €364m, compared with the figure of €1,299m for the first quarter of 2020. In addition to the performance of operating cash flow, the difference also reflects the Abertis group's collection of tax credits totalling €622m in 2020.
Net cash used for investment in non-financial assets in the first quarter of 2021 is up €37m compared with the first quarter of 2020, essentially due to increased capital expenditure.
The net equity cash inflow in the first quarter of 2021 totals €703m, compared with an outflow of €21m in the comparative period. This essentially reflects the above issue of hybrid bonds with a nominal value of €750m by the Abertis group.
The above cash flows in the first quarter of 2021 thus resulted in a reduction of €974m in net debt (a reduction of €1,252m in the first quarter of 2020).
Results by operating segment
| Autostrade per l'Italia group | Q1 2021 | Q1 2020 | Change | % change |
|---|---|---|---|---|
| Traffic (millions of km travelled) | 7,834 | 8,765 | -931 | -10.6% |
| €m | ||||
| Operating revenue | 722 | 728 | -6 | -1% |
| EBITDA | 321 | 391 | -70 | -18% |
| Operating cash flow | 47 | 224 | -177 | -79% |
| Capital expenditure | 164 | 104 | +60 | +58% |
| 31. Mar 2021 | 31 Dec 2020 | Change | % change | |
| Net debt | 8,916 | 8,557 | +359 | +4% |
AUTOSTRADE PER L'ITALIA GROUP
Traffic during the first quarter of 2021 continued to be significantly impacted by the effects of the spread of Covid-19 in Italy from the last week in February 2020, and by the resulting restrictions on movement imposed by the authorities. Traffic on the group's motorway network in the first quarter of 2021 was down 10.6% compared with the same period of the previous year. The reduction is due to the fall in the number of kilometres travelled by vehicles with 2 axles, which is down 14.9%, whilst the figure for vehicles with 3 or more axles is up 8.8%.
Operating revenue for the first quarter of 2021 amounts to €722m, a reduction of €6m compared with the first quarter of 2020. This reflects the reduction in toll revenue (down €35m) as a result of the above fall in traffic using the network, almost entirely offset by an increase in other operating income (€29m) due to the inclusion of construction and engineering activities (Pavimental and Tecne) in the ASPI Group compared with the comparative period.
Operating costs of €401m are up €64m (18%) compared with the first quarter of 2020. This reflects:
- increased work carried out by ASPI as the company continues with its planned network maintenance and safety improvement programme, focusing above all on bridges, viaducts and tunnels, included in the extraordinary maintenance plan, as well as an increase in the variable costs relating to winter operations, linked to the significant rise in snow events, net of the use of provisions for repairs carrioed out as part of cyclical maintenance;
- operating costs (mainly staff costs) linked to construction and engineering activities.
EBITDA thus amounts to €321m, a reduction of €70m (18%) compared with the first quarter of 2020.
Operating cash flow for the first quarter of 2021 amounts to €47m, a reduction of €177m (79%) compared with the first quarter of 2020. This primarily reflects the reduction in toll revenue linked to the above fall in traffic and increased maintenance work on Autostrade per l'Italia's network.
Capital expenditure amounts to €164m (€104m in the first quarter of 2020), including €154m spent by ASPI. Work continued on the works included in the Agreement of 1997 and the IV Addendum of 2002, other major works and on expenditure on ongoing improvements to quality and safety standards on the network and investment in the development of new technologies.
The first quarter of 2021 also saw ASPI proceed with work on numerous interventions on the network provided for in its development and modernisation programme, which the company plans to carry out by 2038. The programme, included in the updated Financial Plan still being examined by the Grantor, covers a series of works designed to improve, upgrade and modernise the motorway network, and extend the life of the infrastructure. This is in addition to the Company's existing obligations under its concession arrangement.
Disclosure on Autostrade per l'Italia
With regard to efforts to resolve the dispute over allegations of serious breaches of Autostrade per l'Italia's Concession Arrangement initiated by the Grantor on 16 August 2018, there were no major new developments during the first quarter of 2021 with respect to the information provided in the Integrated Annual Report for 2020. In its letter dated 1 March 2021, Autostrade per l'Italia urged the Grantor to sign all the documents necessary in order to proceed with submission of the Addendum and its annexes (the "draft Agreement") to the Interministerial Committee for Economic Planning (CIPE). It should also be remembered that, on 3 December 2020, Autostrade per l'Italia submitted the latest version of its updated Financial Plan to the Grantor, having reached agreement on the updated text with the Ministry for Sustainable Mobility and the Ministry of the Economy and Finance, expressing a willingness to sign the agreement, broadly as set out by the Government on 23 September 2020, subject solely to the removal of article 10, which ties effectiveness of the agreement to completion of the corporate reorganisation to be carried out after a positive conclusion to the talks between Atlantia and CDP.
In the draft agreement, Autostrade per l'Italia has, among other things, committed to covering total costs of €3,400m at its own expense, including:
a) €1,500m to be used to fund toll discounts for road users;
- b) €1,200m to fund additional maintenance of the infrastructure operated under concession in the regulatory period 2020-2024 and that will not be recovered through tolls;
- c) €700m in expenses relating to reconstruction of the Polcevera road bridge and all the associated expenses.
With regard to reconstruction of the Polcevera road bridge, as at 31 March 2021, Autostrade per l'Italia has incurred total costs of €534m (including exemptions from the payment of tolls).
ABERTIS GROUP
| Abertis group | Q1 2021 | Q1 2020 | Change | % change |
|---|---|---|---|---|
| Traffic (millions of km travelled) | 13,656 | 14,272 | -616 | -4.3% |
| Average exchange rate (currency/€) | ||||
| Chilean peso | 872.41 | 886.05 | - | +2% |
| Brazilian real | 6.60 | 4.92 | - | -25% |
| €m | ||||
| Operating revenue | 1,069 | 1,044 | +25 | +2% |
| EBITDA | 709 | 666 | +43 | +6% |
| Operating cash flow | 430 | 463 | -33 | -7% |
| Capital expenditure | 95 | 95 | - | - |
| 31. Mar 2021 | 31 Dec 2020 | Change | % change | |
| Net debt | 22,611 | 23,805 | -1,194 | -5% |
Based on a like-for-like scope of consolidation, the Abertis group's traffic fell by 4.3% in the first quarter of 2021 compared with the same period of 2020. This reflects the impact of the restrictions on movement imposed in the countries in which the group holds motorway concessions in response to the spread of the Covid-19 pandemic. Specifically, there was a marked decline in traffic in European countries (Spain, France and Italy), whilst the figures were in line with the first quarter of 2020 in Chile and Brazil and up in India, Puerto Rico and Argentina.
Operating revenue for the first quarter of 2021 amounts to €1,069m, an increase of €25m (2%) compared with the same period of 2020. This primarily reflects changes in the scope of consolidation (up €97m, above all following the first-time consolidation of RCO in Mexico and ERC in the United States after their acquisition in 2020) and an indemnity of €20m relating to the acquisition of A4 Holding, partially offset by the above reduction in traffic on the group's motorways and the decline in the value of the Brazilian currency. On a like-for-like basis, operating revenue is down €22m (2%).
Operating costs of €360m are down €18m compared with the same period of 2020. This reflects: lower non-income French tax charges, partly linked to the lower traffic recorded on the network and partly due to a reduction in tax rates; reduced provisions for surfacing work in Brazil and the impact of the fall in the value of overseas currencies, only partially offset by the increase in costs resulting from the change in the scope of consolidation.
EBITDA for the first quarter of 2021 thus amounts to €709m, an increase of €43m (6%) compared with the same period of 2020. On a like-for-like basis, EBITDA is down €6m (1%).
Breakdown of the Abertis group's EBITDA
Capital expenditure amounted to €95m in the first quarter of 2021, in line with the first quarter of 2020. This primarily regards work on the Plan de Relance investment programme in France and the Contorno de Florianopolisproject and resurfacing and widening work in Brazil.
Net debt amounts to €22,611m as at 31 March 2021, a reduction of €1,194m compared with 31 December 2020 (€23,805m). This primarily reflects the impact of the hybrid bond issue by Abertis Infraestructuras Finance in the first quarter of 2021 and an increase in operating cash flow, above all in France.
OTHER OVERSEAS MOTORWAYS
| Other overseas motorways | Q1 2021 | Q1 2020 | Change | % change |
|---|---|---|---|---|
| Traffic (millions of km travelled) | 1,998 | 2,198 | -200 | -9.1% |
| Average exchange rate (currency/€) | ||||
| Chilean peso | 872.41 | 886.05 | - | +2% |
| Brazilian real | 6.60 | 4.92 | - | -25% |
| Polish zloty | 4.55 | 4.32 | - | -5% |
| €m | ||||
| Operating revenue | 127 | 150 | -23 | -15% |
| EBITDA | 96 | 116 | -20 | -17% |
| Operating cash flow | 94 | 99 | -5 | -5% |
| Capital expenditure | 42 | 59 | -17 | -29% |
| 31. Mar 2021 | 31 Dec 2020 | Change | % change | |
| Net debt | 684 | 636 | +48 | +8% |
Traffic on the networks managed by the Group's other overseas operators fell 9.1% in the first quarter of 2021 2020, reflecting the impact of the restrictions on movement imposed by the various governments in response to the Covid-19 pandemic.
Operating revenue for the first quarter of 2021 amounts to €127m, a reduction of €23m (15%) compared with the same period of 2020. This primarily reflects the decline in the value of the Brazilian real (down €16m) and the above fall in traffic, partly offset by toll increases awarded to the Brazilian and Chilean operators and the favourable traffic mix in Brazil. On a like-for-like basis, operating revenue is down €7m (5%).
EBITDA for the first quarter of 2021 amounts to €96m (Chile 54%, Brazil 32% and Poland 14%) and is down €20m (17%) compared with the first quarter of 2020. This primarily reflects the above decline in operating revenue, partially offset by the impact of the fall in the value of the Brazilian real against the euro (down €10m). On a like-for-like basis, EBITDA is down €10m (9%).
Capital expenditure amounted to €42m in the first quarter of 2021 (€59m in the first quarter of 2020), including €38m in Chile and reflecting payments to the Grantor by the operators, Americo Vespucio Oriente II and Conexión Vial Ruta 78 Hasta Ruta 68, as their contributions to the cost of expropriations in accordance with the related concession arrangements.
AEROPORTI DI ROMA GROUP
| Aeroporti di Roma group | Q1 2021 | Q1 2020 | Change | % change |
|---|---|---|---|---|
| Traffic (millions of pax) | 1.1 | 6.8 | -5.7 | -83.9% |
| €m | ||||
| Operating revenue | 39 | 142 | -103 | -73% |
| EBITDA | -21 | 68 | -89 | n/s |
| Operating cash flow | -10 | 57 | -67 | n/s |
| Capital expenditure | 46 | 63 | -17 | -27% |
| 31. Mar 2021 | 31 Dec 2020 | Change | % change | |
| Net debt | 1,513 | 1,426 | +87 | +6% |
Passenger traffic handled by the Roman airport system was down 83.9% in the first quarter of 2021 compared with the same period of 2020. This reflects the major impact of the global spread of Covid-19, which, in the first quarter of 2020, only had a significant impact on traffic from mid-March. The domestic segment, which saw a less accentuated decline in traffic, ended the period down 66.7% compared with the first quarter of 2020, whilst the EU segment1 saw traffic drop 90.1% and the Non-EU segment a fall of 87.9% (including an 91.8% drop in long-haul).
Operating revenue for the first quarter of 2021 amounts to €39m, a reduction of €103m (73%) compared with the first quarter of 2020. Aviation revenue of €19m is down €76m (80%) due to the fall in traffic. Other operating income of €20m is down €27m (57%) compared with the first quarter of 2020, primarily due to reduced income from retail sub-concessions, real estate and car parks, reflecting the above fall in traffic and only partial use of Fiumicino, where activity has continued to be concentrated at Terminal 3.
Operating costs of €60m are down €14m (19%) compared with the same period of the previous year. This reflects the partial closure of Fiumicino airport, a reduction in staff costs, due partly to the use of government income support schemes (CIGS), and lower concession fees linked to the performance of traffic, as well as other initiatives taken to reduce other operating costs.
Negative EBITDA thus amounts to €21m, a deterioration of €89m compared with the first quarter of 2020.
Capital expenditure in the first quarter of 2021 amounted to €46m (€63m in the first quarter of 2020) and regarded work on the eastern part of Fiumicino airport and continuation of the radical upgrade of the "delta" taxiway and the Unified Control Room. Work also continued on essential safety improvements, operational continuity and compliance.
1 The UK is classed as Non-EU from 1 January 2021.
AÉROPORTS DE LA CÔTE D'AZUR GROUP
| Aéroports de la Côte d'Azur group | Q1 2021 | Q1 2020 | Change | % change |
|---|---|---|---|---|
| Traffic (millions of pax) | 0.6 | 2.0 | -1.4 | -72.1% |
| €m | ||||
| Operating revenue | 25 | 49 | -24 | -49% |
| EBITDA | 0 | 11 | -11 | -100% |
| Operating cash flow | -2 | 8 | -10 | n/s |
| Capital expenditure | 12 | 11 | +1 | +9% |
| 31. Mar 2021 | 31 Dec 2020 | Change | % change | |
| Net debt | 967 | 976 | -9 | -1% |
In the first quarter of 2021, the airport system serving the Cote d'Azur handled 0.6m passengers, registering a 72.1% fall in traffic compared with the first quarter of 2020. This reflects the restrictions on movement imposed in response to the global spread of Covid-19.
Operating revenue for the first quarter of 2021 amounts to €25m, a reduction of €24m (49%) compared with the first quarter of 2020. Aviation revenue of €13m is down €12m (48%) compared with the first quarter of 2020, essentially due to the above impact on traffic. Other operating income of €12m is down €12m (50%) compared with the first quarter of 2020, primarily due to reduced income from retail sub-concessions and car parks, reflecting the above fall in traffic.
Operating costs of €25m are down €13m (34%) compared with the first quarter of 2020, reflecting reflects the partial closure of Nice airport (Terminal 1), a reduction in staff costs achieved thanks to the use of government income support schemes (chômage partiel), a reduction in business rates directly linked to the performance of traffic, and other initiatives taken to reduce other operating costs.
EBITDA of €0m is down €11m (100%) compared with the first quarter of 2020.
Capital expenditure in the first quarter of 2021 amounted to €12m (€11m in the first quarter of 2020) and primarily regarded work on essential safety improvements, operational continuity and compliance.
TELEPASS GROUP
| Telepass group | Q1 2021 | Q1 2020 | Change | % change |
|---|---|---|---|---|
| Telepass devices (m) | 9.1 | 8.9 | 0.2 | 2.3% |
| €m | ||||
| Operating revenue | 59 | 57 | 2 | 4% |
| EBITDA | 21 | 30 | -9 | -30% |
| Operating cash flow | 18 | 25 | -7 | -28% |
| Capital expenditure | 25 | 18 | +7 | +39% |
| 31. Mar 2021 | 31 Dec 2020 | Change | % change | |
| Net debt | 712 | 557 | +155 | +28% |
As at 31 March 2021, there are a total of 9.1m active Telepass devices in circulation, an increase of approximately 200,000 compared with 31 March 2020 (up 2.3%), whilst Telepass Pay has 565,000 customers, marking an increase of 99,000 compared with 31 March 2020 (up 21.3%).
Operating revenue for the first quarter of 2021 amounts to €59m, an increase of €2m (4%) compared with the first quarter of 2020. This primarily reflects the positive performance of remote tolling for vehicles on overseas motorway networks, an increase in the customer base and the contribution of revenue generated by new insurance products, which offset the negative impact of the Covid-19 pandemic on the volume of transactions, above all in the Mobility segment.
Operating costs of €38m are up €11m (41%) compared with the same period of 2020. This reflects the costs linked to the increase in overseas business (e.g., overseas commissions, distribution costs, wash-outs), consolidation of the organisation (primarily IT and staff costs), sponsorship of the "Cortina 2021" alpine ski championships and the Antitrust fine relating to the distribution of motor insurance via the company's own app (€2m).
EBITDA of €21m is down €9m (30%) compared with the first quarter of 2020.
Capital expenditure in the first quarter of 2021 amounted to €25m (€18m in the first quarter of 2020) and primarily regarded software linked to the services offered and the group's digital transformation.
Net debt amounts to €712m as at 31 March 2021, an increase of €155m compared with 31 December 2020 (€557m). Above all, this reflects the shareholder resolution approving payment of dividends totalling €105m (not yet paid as at 31 March 2020 and accounted for in financial liabilities) and an increase in trade receivables.
Significant regulatory and legal aspects
In addition to the information already provided in the Integrated Annual Report for 2020, this section provides details of updates or new developments relating to significant regulatory and legal events affecting Group companies and occurring through to the date of approval of this results announcement for the three months ended 31 March 2021.
Autostrade per l'Italia group
Negotiations with Cassa Depositi e Prestiti and the dual-track process
The Extraordinary General Meeting of shareholders was held on 29 March 2021. The Meeting was called to deliberate on an extension of the deadline for the potential submission by third parties of binding offers for Atlantia's controlling 62.8% interest in Autostrade Concessioni e Costruzioni SpA ("ACC"), and thus indirectly for a 55% stake in ASPI, until 31 July 2021, compared with the original deadline of 31 March 2021. The original deadline was established in the plan for the partial, proportional demerger of Atlantia to ACC, approved by the Extraordinary General Meeting of 15 January 2021.
The Meeting did not approve the extension of the above deadline for satisfaction of the condition precedent in art. 7.1 (ix) of the Demerger Plan, as the voting quorum provided for in the legislation on extraordinary general meetings (i.e., two-thirds of the issued capital must be represented at the meeting) had not been reached.
As a result, given that no binding offers to acquire the stake in ACC, in accordance with the terms set out in the Demerger Plan, had been received by 31 March 2021, the demerger was halted.
On 31 March 2021, CDP Equity SpA, The Blackstone Group International Partners and Macquarie Infrastructure and Real Assets (the "CDP Consortium") submitted a second binding offer, after the one submitted on 24 February 2021, for Atlantia's entire stake in Autostrade per l'Italia.
The Board of Directors' meeting of 8 April 2021 thus began to examine this new binding offer with the assistance of the Company's legal and financial advisors. The Board also noted the expression of interest, received from the ACS group, in acquiring a stake in ASPI, in consortium with other Italian and international investors.
On 16 April 2021, the Board of Directors, in continuing its assessment, decided to call an Ordinary General Meeting of the Company's shareholders to be held by 28 May 2021 (the expiry date for the offer). The meeting will be asked to examine the binding offer submitted by the CDP Consortium to enable the Board to gauge the views of the Company's shareholders.
The Board met again on 23 April 2021 and, in view of the CDP Consortium's willingness to extend the validity of the offer until 31 May 2021, decided to meet again on 30 April to take the necessary decisions.
On 29 April, a new binding offer was received from the Consortium and the Board of Directors, meeting on 30 April, decided to call an Ordinary General Meeting of the Company's shareholders, to be held in single call on 31 May 2021, to examine the new offer.
The Board also approved the explanatory report published on the same day (30 April), explaining the content of the offer, the related background, the results of the Board's assessment and potential alternative scenarios. Reference should be made to this document for full details.
Only once shareholders have voted on the offer - and in any event no later than 11 June, the last day on which the offer is valid in the event of approval by shareholders – will the Board meet on the same day to take a final decision on this matter.
Claim for damages from the Ministry of the Environment
The grounds for the Supreme Court ruling on the criminal case brought before the Court of Florence, regarding alleged violations of environmental laws during construction of the Variante di Valico, were published on 15 March 2021. The Court of Appeal in Florence must now examine all the technical evidence relating to the excavated materials obtained by ARPAT (the regional environmental protection agency) but not used during the trial at first instance. It should be noted that this evidence is not dissimilar, in terms of technical and scientific content, from the conclusions reached following ARPAT's inspection of the same materials, and included in the evidence used during the previous trial and on the basis of which the Court at first instance decided to acquit the accused, as there was no case to answer given that the law had not been breached.
The Court of Appeal must also carry out an examination of the use made of the soil and rocks from excavation work and the related by-products to ensure compliance with the consents obtained, and the absence of any potential contamination or environmental damage.
Proceeding initiated by the Antitrust Authority
On 26 March 2021, Italy's Antitrust Authority announced that it was going to fine Autostrade per l'Italia the sum of €5m for: (i) the disruption to traffic on the A14, A16 and sections of motorway in the Genoa area due to the operator's failure to properly manage and maintain the infrastructure; and (ii) failing to ensure that road users were appropriately informed about their right to claim a refund of any tolls paid in recognition of the inferior quality of service provided.
Whilst taking steps to comply with the Authority's ruling, Autostrade per l'Italia has asked its legal advisers to examine the ruling with a view to challenging it in court.
Extraordinary tunnel inspections – Settlement of the procedure for serious breach pursuant to art. 8 of the Single Concession Arrangement
With reference to the announcement of 22 July 2020, launching a procedure for serious breaches pursuant to art. 8 of the Single Concession Arrangement in relation to checks carried out by Autostrade per l'Italia on tunnels on the network it operates, with particular regard to those in the Liguria region, following the Company's submission of counterarguments and two specific meetings at the Grantor's offices, on 21 April 2021, the Grantor announced its decision to impose a fine of €100,000 on Autostrade per l'Italia, thereby bringing the dispute to an end.
Investigation of the collapse of a section of the Polcevera road bridge by the Public Prosecutor's Office in Genoa
On 22 April 2021, the Public Prosecutor's Office in Genoa notified the parties under investigation that the preliminary investigation of the offences of accessory to culpable collapse, violation of transport safety regulations aggravated by culpable disaster and culpable vehicular homicide had come to an end. In addition to containing a summary of the charges being brought, the notice sets out charges relating to further offences, including the removal or failure to use occupational safety equipment, grievous or very grievous bodily harm due to a road traffic accident and making false statements in a digital public document or forming part of evidence.
In addition to art. 25septies of Legislative Decree 231/2001 (culpable homicide or grievous or very grievous bodily harm resulting from breaches of occupational health and safety regulations), ASPI is also under investigation with regard to the violation of art. 24bis of the same Decree (computer crime and the illegal processing of data) in relation to the preparation of reports on surveillance of the Polcevera road bridge by the relevant technical units at SPEA. Based on the information currently available, the trial is expected to begin by the end of this year.
Other activities
Antitrust Authority investigation of motor insurance policies
On 18 March 2021, Italy's Antitrust Authority ("AGCM") published the ruling that has imposed a fine of €2m on Telepass SpA and Telepass Broker SpA for misleading commercial practices in the distribution of motor insurance policies.
AGCM acknowledged that the related conduct has ceased and the companies are not, therefore, required to enter into a compliance programme or to assume obligations regarding changes to or implementation of the insurance process.
After assessments conducted by their legal advisors, Telepass and Telepass Broker believe that aspects of the ruling are open to challenge and the companies' legal counsel is preparing to file a challenge before Lazio Regional Administrative Court.
Going concern assumption
Following the updated assessment presented in the Integrated Annual Report for 2020, Atlantia's Board of Directors has confirmed application of the going concern assumption and will continue to monitor the risk factors and uncertainties to which Autostrade per l'Italia is exposed, and Atlantia's exposure to liquidity and financial risk.
Assessment of whether the going concern assumption is appropriate requires a judgement, at a certain time, of the future outcome of events or circumstances that are by nature uncertain. Whilst taking due account of all the available information at that time, this judgement is, therefore, susceptible to change as developments occur, should events that were reasonably foreseeable at the time of the assessment not occur, or should facts or circumstances arise that are incompatible with such events, and that are currently not known or, in any event, not reasonably estimable at the date of preparation of this results announcement for the three months ended 31 March 2021.
Requirement to provide additional disclosures pursuant to art. 114, paragraph 5 of Legislative Decree 58/1998 (the "CFA")
The additional disclosures required by the CONSOB pursuant to art. 114 of Legislative Decree 58/1998 (the "CFA") are provided below.
a) The net debt or net funds of the Company and the Group it controls, with short-term components shown separately from medium/long-term components
The following tables show the Company's and the Group's net debt or net funds as at 31 March 2021 and 31 December 2020, as required by CONSOB Ruling DEM/6064293 of 28 July 2006 and 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).
Atlantia SpA's net debt
| €M | 31 MARCH 2021 |
31 DECEMBER 2020 |
INCREASE/ (DECREASE) |
|---|---|---|---|
| Cash | 646 | 1,686 | -1,040 |
| Cash equivalents | 185 | 575 | -390 |
| Cash and cash equivalents (A) | 831 | 2,261 | -1,430 |
| Current financial assets (B) | 86 | 6 | 80 |
| Intercompany current account payables due to related parties | 1 | - | 1 |
| Current portion of medium/long-term financial liabilities | 47 | 204 | -157 |
| Current financial liabilities (C) | 48 | 204 | -156 |
| Current net funds (D=A+B+C) | 869 | 2,063 | -1,194 |
| Medium/long-term borrowings | 2,988 | 5,234 | -2,246 |
| Bond issues | 2,725 | 1,738 | 987 |
| Non-current derivative liabilities | 159 | 205 | -46 |
| Non-current financial liabilities (E) | 5,872 | 7,177 | -1,305 |
| Net debt as defined by ESMA recommendation (F=D+E) | 5,003 | 5,114 | --111 |
| Non-current financial assets (G) | 665 | 679 | -14 |
| Net debt (H=F+G) | 4,338 | 4,435 | -97 |
As at 31 March 2021, Atlantia SpA has net debt of €4,338m, down €97m compared with 31 December 2020 (€4,435m).
Non-current financial liabilities of €5,872m as at 31 March 2021 are down €1,305m compared with 31 December 2020 (€7,177m). This essentially reflects voluntary early repayment of the revolving credit facility of €1,250m maturing in 2023 and of the principal on the term loan maturing in 2022, totalling €1,000m, using the proceeds from the new €1,000m bond issue of February 2021, maturing in 2028.
Correspondingly, current net funds of €869m as at 31 March 2021 are down €1,194m compared with 31 December 2020 (€2,063m). This essentially reflects the above bond issue and the repayments of the revolving credit facility and the term loan, the recognition of amounts receivable in the form of dividends declared by Telepass (€53m) and Stalexport (€21m) and partial repayment of the loan granted to Autostrade dell'Atlantico (€29m).
The Group's net debt
| €M | 31 MARCH | 31 DECEMBER | INCREASE/ |
|---|---|---|---|
| 2021 | 2020 | (DECREASE) | |
| Cash | 5,175 | 6,633 | -1,458 |
| Cash equivalents | 2,074 | 1,752 | 322 |
| Cash and cash equivalents (A) | 7,249 | 8,385 | -1,136 |
| Current financial assets (B) | 1,285 | 1,274 | 11 |
| Current account overdrafts repayable on demand | 46 | 67 | -21 |
| Current portion of medium/long-term financial liabilities | 5,078 | 6,819 | -1,741 |
| Other financial liabilities | 499 | 551 | -52 |
| Current financial liabilities (C) | 5,623 | 7,437 | -1,814 |
| Current net funds (D=A+B+C) | 2,911 | 2,222 | 689 |
| Bond issues | 30,547 | 28,454 | 2,093 |
| Medium/long-term borrowings | 13,848 | 15,877 | -2,029 |
| Other non-current financial liabilities | 1,662 | 1,878 | -216 |
| Non-current financial liabilities (E) | 46,057 | 46,209 | -152 |
| Net debt as defined by ESMA recommendation (F=E-D) | 43,146 | 43,987 | -841 |
| Non-current financial assets (G) | 4,882 | 4,749 | 133 |
| Net debt (H=F+G) | 38,264 | 39,238 | -974 |
As at 31 March 2021, the Atlantia Group has net debt of €38,264m, down €974m compared with 31 December 2020 (€39,238m). This essentially reflects the issue of the second tranche of Abertis Infraestructuras Finance's hybrid bonds (€734m net of issue costs) and operating cash flow after capital expenditure in the quarter (€197m).
Non-current financial liabilities of €46,057m are down €152m compared with 31 December 2020 (€46,209m), primarily reflecting the above voluntary early repayment of debt by Atlantia, totalling €2,250m, and by Abertis Infraestructuras, amounting to €750m. The effect of these transactions was partially offset by bond issues by Atlantia (€1,000m) and Autostrade per l'Italia (€1,000m), new bank borrowing of €500m at Abertis Infraestructuras, and reclassification of the non-current portion of the loan from Cassa Depositi e Prestiti ("CDP") with a nominal value of €400m – included in the current portion of financial liabilities as at 31 December 2020 solely for the purposes provided for in IAS 1 – to long-term following the grant, in March 2021, of a covenant holiday solely in relation to the measurement date of 31 December 2020.
Current net funds of €2,911m are up €689m compared with 31 December 2020 (€2,222m), primarily reflecting the issue of the second tranche of Abertis Infraestructuras Finance's hybrid bonds, the above reclassification of the non-current portion of the loan to Autostrade per l'Italia from CDP and operating cash flow after capital expenditure in the quarter.
b) Past due payables of the Company and the Group it controls by category (financial, trade, tax, social security, due to employees) and the related actions taken by creditors (reminders, injunctions, suspensions of supply, etc.)
A summary of Atlantia SpA's payables as at 31 March 2021 is provided below by category, showing past due amounts.
Atlantia SpA
| €M | 31 MARCH 2021 |
of which past due |
|---|---|---|
| Financial liabilities | 5,920 | - |
| Trading liabilities | 9 | - |
| Tax liabilities | 42 | - |
| Amounts payable to staff | 12 | - |
| Social security contributions payable |
1 | - |
| Other liabilities | 10 | 3 |
| Total liabilities | 5,994 | 3 |
As at 31 March 2021, Atlantia SpA does not report any past due payables as a result of insufficient financial resources or action taken by creditors involving material amounts or items deemed critical with regard to the Company's operations.
A summary of the Group's payables as at 31 March 2021 is provided below by category, showing past due amounts.
| Atlantia Group | ||
|---|---|---|
| €M | 31 MARCH 2021 |
of which past due |
| Financial liabilities | 51,680 | - |
| Trading liabilities | 1,916 | 220 |
| Tax liabilities | 183 | - |
| Amounts payable to staff | 197 | - |
| Social security contributions payable |
51 | - |
| Other liabilities | 1,071 | 8 |
| Total liabilities | 55,098 | 228 |
The Group's past due payables as at 31 March 2021 primarily regard trade payables for the most part reflecting non-payment within the usual contractual or commercial terms of payment, disputes over the services received, suppliers involved in insolvency proceedings awaiting settlement, the seizure of amounts due to suppliers and amounts to be offset against receivables due from the same party. No action has been taken by the creditors of the Atlantia Group as at 31 March 2021 involving material amounts or items deemed critical with regard to the operations of Group companies.
c) Main changes in related party transactions involving the Company and Group it controls, compared with the latest annual or half-year report approved pursuant to art. 154-ter of the CFA
With regard to the main changes in related party transactions during the three months ended 31 March 2021, Atlantia SpA collected partial repayment (€29m) of the loan (classified in non-current financial assets) granted to Autostrade dell'Atlantico (maturing in 2022).
In the Atlantia Group's case, compared with 31 December 2020, the Group has collected tax credits from Sintonia, relating to 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. There has also been an increase of €17m in trading assets due from Autogrill (€21m as at 31 December 2020), primarily due to advance billing in accordance with the related contracts.
d) Any breaches of covenants, negative pledge provisions or any other provisions attaching to the Group's borrowings, resulting in restrictions on the use of cash, with an up-to-date indication of the degree to which the provisions have been complied with
With respect to compliance with covenants, negative pledge provisions and other provisions involving restrictions on the use of cash by Group companies, following the downgrade of its ratings to below investment grade by two out of three rating agencies on 8 January 2020, a number of loan agreements entered into by Autostrade per l'Italia SpA with the European Investment Bank ("EIB") and CDP may trigger requests for early repayment. At the date of this results announcement, neither the EIB or CDP have requested the enforcement of any contractual rights and/or remedies.
Furthermore, with regard to two lines of credit amounting to €1.3bn obtained by Autostrade per l'Italia from CDP, following a request to drawn down €200m of the Revolving Credit Facility, talks are continuing with the aim of assessing whether or not the suspensive conditions that would permit disbursement have been met.
Finally, as a result of the negative impact of Covid-19 on the operating results and financial position of Group companies, a number of them (Atlantia, Autostrade per l'Italia, Aeroporti di Roma, Aéroports de la Côte D'Azur, A4 Holding and Nascentes das Gerais) have, on a preventive, precautionary basis, agreed covenant holidays with their lenders at the measurement date of 31 December 2020 and, where suitable, at subsequent measurement dates. The assessment carried out on the basis of the actual operating results and financial position as at 31 December 2020, following approval of the request for covenant holidays, showed that the financial covenants provided for in the loan agreements of the Parent Company, Atlantia, had been complied with.
Group companies will monitor the level of traffic and the implementation of mitigating actions in 2021, where necessary entering into dialogue with their lenders in order to negotiate further covenant holidays.
e) The state of progress in implementing the Financial Plan, highlighting any differences between actual and expected performance
The "Outlook" reports on the sensitivity analysis conducted in order to assess the potential impact on revenue and operating cash flow in 2021.
Events after 31 March 2021
Sale of 49% stake in Telepass completed
Atlantia completed the sale of its 49% stake in Telepass to the global private markets investment manager, Partners Group AG, on 14 April 2021. The proceeds from the sale amounted to €1,056m.
New sustainability-linked financing
On 22 April 2022, Aeroporti di Roma placed its first issue of sustainability-linked bonds directly linking the cost of the debt to the sustainability targets effectively achieved.
The issue, worth €500m and with a term to maturity of 10 years, was more than 5 times oversubscribed.
On 27 April 2021, Autostrade per l'Italia agreed a 5-year, €750m revolving credit facility with the aim of strengthening the Company's financial structure. The proceeds will be used for general corporate purposes and to fund the upgrade and modernisation of the motorway network operated under concession.
The financing includes an option to convert the agreement into a Sustainability-linked Revolving Credit Facility following publication of the Autostrade per l'Italia Group's first Sustainability Report, expected by June 2021.
Early repayment of Atlantia's term loans
On 30 April, Atlantia effected voluntary early repayment of principal amounting to €1,250m on term loans maturing in 2022 and 2023. At the date of this quarterly results announcement, Atlantia's next debt repayment date is in September 2023.
Bond issue by HIT
On 5 May, HIT placed bonds with a value of €600m, maturing in September 2028 and paying annual coupon interest of 0.625%. The company also agreed an extension of the weighted average residual term to maturity for its committed lines of credit from 2.2 to 3.5 years.
Funded collar on Hochtief shares
On 6 May 2021, Atlantia completed repayment of the €752m loan associated with the stock loan agreement involving shares in Hochtief and funded collar transaction entered into with Goldman Sachs International in March 2019. As a result, both these transactions have been unwound. As a result of the transaction, which did not involve any cash outflow, Atlantia's net debt was reduced by €752m and Atlantia's interest in Hochtief decreased to 15.9%, compared with the 23.9%
acquired in 2018.
Notices of claim received from ASPI's non-controlling shareholders
On 3 and 5 May, respectively, Atlantia received Notices of Claim from Appia Investments Srl ("Appia") and Silk Road Fund, both non-controlling shareholders in ASPI with a total 11.94% interest. The claims relate to the tragic collapse of a section of the Polcevera road bridge in Genoa and have been filed under the terms of the respective share purchase agreements ("SPAs") entered into by the parties in May 2017.
In the Notices of Claim, Appia and Silk Road Fund generically refer to breaches of representations and warranties, also stating that they are not currently able to quantify their claims. The above SPAs cap such claims at 15% of the price paid in order to purchase the respective interests, absent wilful misconduct or gross negligence.
The SPAs require the parties to attempt to reach an amicable settlement within the deadlines provided for in the agreements. Having failed to reach an amicable settlement, within the deadlines provided for in the agreements, Appia and Silk Road Fund may resort to arbitration.
Outlook
At the date of preparation of this results announcement, there are certain uncertainties with the potential to have a negative impact on Group companies.
Due to the effects of the prolongation of the Covid-19 pandemic and the impact of the resulting restrictions on movement and on the economies of the countries in which the Group operates, it is not currently possible to predict with any certainty how long it will take to return to pre-Covid levels of traffic.
With reference to the current year, based on traffic figures through to 9 May 2021 (a 21% fall in motorway traffic and an 87% decline in airport traffic compared with 2019), and assuming a gradual relaxation of the restrictions on movement, as the rollout of vaccination programmes progresses, we expect to see a potential improvement in the operating performance in 2021 compared with 2020. This improvement will be more significant in the motorway segment than in the airport segment, although not sufficient to return to the pre-crisis levels of 2019.
Under this scenario, we expect motorway and airport traffic to be down 10% and 70%, respectively, on 2019, in line with the assumptions announced at the beginning of March at the time of preparation of the Integrated Annual Report for 2020.
As a result, we expect the Group's revenue for 2021 to be in the order of €9.4bn, with operating cash flow of approximately €3bn. In any event, operating cash flow is expected to exceed the cost of investment planned for 2021.
It should be noted, however, that the assumptions underlying such a sensitivity analysis are subject to change depending on events and on a number of risk factors and uncertainties (for example, movements in exchange and interest rates). As a result, the actual figures may differ, perhaps significantly, from the expected amounts. The above figures should, therefore, be considered as forecasts of a purely indicative nature and based on the above assumptions. They are subject to review based on future traffic projections as the situation evolves and, as such, do not constitute the outlook or future performance targets for the Group.
In any event, with the aim of mitigating the impact on our earnings and financial position, Group companies will continue to focus on delivering efficiencies and cost savings and on monitoring (or reviewing) their investment plans, whilst at the same time guaranteeing works linked to the safety of infrastructure. We will also continue to identify and assess all the various forms of aid made available to operators by governments and local regulators in the various countries.
Explanatory notes and other information
The manager responsible for financial reporting, Tiziano Ceccarani, declares, pursuant to section 2 of article 154 bis of the Consolidated Finance Act, that the accounting information contained in this release is consistent with the underlying accounting records.
In addition to the conventional financial indicators required by IFRS contained in this press release, certain alternative performance indicators have been included in order to permit a better appraisal of the Company's results and financial position. These indicators have been calculated in accordance with market practices.
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 entail the deduction of non-current financial assets from debt), amounts to €43,146m as at 31 March 2021 (€43,987m as at 31 December 2020).
Alternative performance indicators
In addition to amounts from the income statement and statement of financial position measured and presented under IFRS, the Atlantia Group's reclassified financial statements present a number of indicators and items derived from them, even when they are not required by the above standards. These are, therefore, identifiable as alternative performance indicators ("APIs") in application of the CONSOB Ruling of 3 December 2015, governing implementation in Italy of the guidelines issued by the European Securities and Markets Authority ("ESMA"). The APIs shown in this release are unchanged with respect to those used in the Integrated Annual Report for 2020.
Reconciliation of key indicators included in the reclassified consolidated income statement
Components of the reclassified consolidated income statement are, as required by the ESMA, always linked to the line items presented in the consolidated income statement.
| €m | |||
|---|---|---|---|
| EBITDA/EBIT | Ref. | Q1 2021 | Q1 2020 |
| LOSS FOR THE PERIOD | -118 | -29 | |
| Tax benefit/(expense) | -14 | 4 | |
| Share of (profit)/loss of investees accounted for using the equity method | 9 | 2 | |
| Net financial expenses | (a) | 264 | 375 |
| Operating profit/(loss) (EBIT) | 141 | 352 | |
| Amortisation and depreciation | 968 | 903 | |
| (Impairment losses)/Reversals of impairment losses | 1 | -1 | |
| Provisions for renewal of assets held under concession | (b) | 14 | 17 |
| Gross operating profit/(loss) (EBITDA) | 1,124 | 1,271 | |
| Total operating revenue | Rif | Q1 2021 | Q1 2020 |
| TOTAL REVENUE | 2,212 | 2,425 | |
| Revenue from construction services | -187 | -215 | |
| Total operating revenue | 2,025 | 2,210 | |
| Total operating costs | Rif | Q1 2021 | Q1 2020 |
| TOTAL COSTS | -2,064 | -2,066 | |
| Revenue from construction services – government grants and the cost of materials and external services |
(c) | 165 | 197 |
| Capitalised staff costs - construction services for which additional economic benefits are received |
(c) | 15 | 11 |
| Provisions for renewal of assets held under concession | (b) | 14 | 17 |
| Amortisation and depreciation | 968 | 903 | |
| (Impairment losses)/Reversals of impairment losses | 1 | -1 | |
| Total operating costs | -901 | -939 |
Note: (a) the reconciliation of net financial expenses is shown below:
| Net financial expenses | Ref. | Q1 2021 | Q1 2020 |
|---|---|---|---|
| NET FINANCIAL INCOME/(EXPENSES) | 271 | 382 | |
| Revenue from construction services: capitalised financial expenses | (c) | -7 | -7 |
| Net financial expenses | (a) | 264 | 375 |
Reconciliation of the reclassified consolidated statement of financial position
Components of the reclassified consolidated statement of financial position are, as required by the ESMA, always linked to the line items presented in the consolidated statement of financial position.
| €m | |||||
|---|---|---|---|---|---|
| 31 MARCH 2021 | 31 DECEMBER 2020 | ||||
| Intangible assets deriving from concession rights | 48,485 | 49,229 | |||
| Goodwill | 12,785 | 12,785 | |||
| Property, plant and equipment and other intangible assets | 1,256 | 1,257 | |||
| Property, plant and equipment | 759 | 774 | |||
| Other intangible assets | 497 | 483 | |||
| Investments | 2,787 | 2,841 | |||
| Working capital (net current provisions) | 519 | 307 | |||
| Trading assets | 2,563 | 2,438 | |||
| Current tax assets | 362 | 404 | |||
| Other current assets | 705 | 668 | |||
| Non-financial assets and liabilities held for sale and discontinued operations |
23 | 23 | |||
| Trading liabilities | -1,916 | -2,160 | |||
| Current tax liabilities | -183 | -89 | |||
| Other current liabilities | -1,035 | -977 | |||
| Provisions and commitments | -8,525 | -8,789 | |||
| Provisions for construction services required by contract | -2,862 | -2,977 | |||
| Other provisions | -5,663 | -5,812 | |||
| Deferred tax assets/(liabilities), net | -3,833 | -3,868 | |||
| Deferred tax assets | 2,404 | 2,469 | |||
| Deferred tax liabilities | -6,237 | -6,337 | |||
| Other non-current assets and liabilities, net | -269 | -260 | |||
| NET INVESTED CAPITAL | 53,205 | 53,502 | |||
| Total equity | 14,941 | 14,264 | |||
| Bond issues | 32,765 | 31,673 | |||
| Bond issues – non-current portion | 30,547 | 28,454 | |||
| Bond issues – current portion | 2,218 | 3,219 | |||
| Medium/long-term borrowings | 16,202 | 18,690 | |||
| Medium/long-term borrowings – non-current portion | 13,848 | 15,877 | |||
| Medium/long-term borrowings – current portion | 2,354 | 2,813 | |||
| Other financial liabilities | 2,713 | 3,283 | |||
| Financial assets deriving from concession rights | -3,592 | -3,484 | |||
| Non-current financial assets deriving from concession rights | -3,035 | -2,931 | |||
| Current financial assets deriving from concession rights | -557 | -553 | |||
| Cash and cash equivalents | -7,249 | -8,385 | |||
| Other financial assets | -2,575 | -2,539 | |||
| Net debt | 38,264 | 39,238 | |||
| NET DEBT AND EQUITY | 53,205 | 53,502 |
Reconciliation of the statement of changes in consolidated net debt and the consolidated
statement of cash flows
Key APIs, as required by the ESMA, always linked to the line items presented in the consolidated statement of cash flows.
| €m | ||
|---|---|---|
| Q1 2021 | Q1 2020 | |
| Net cash generated from operating activities | 364 | 1,299 |
| Net cash used in investment in non-financial assets (A) | -315 | -278 |
| Net debt assumed as a result of investments in consolidated companies (*) | 2 | - |
| Net change in current and non-current financial assets | -107 | -157 |
| Differences relating to cash generated from/(used in) investing activities (B) | -105 | -157 |
| Net cash generated from/(used in) investing activities (C=A+B) | -420 | -435 |
| Net equity cash inflows/(outflows) (D) | 703 | -21 |
| Dividends declared net of dividends paid by Group companies to non-controlling shareholders | 12 | 6 |
| Issuance of bonds | 2,051 | 593 |
| Increase in medium/long term borrowings (excluding lease liabilities) | 635 | 4,279 |
| Bond redemptions | -1,015 | -1,545 |
| Repayments of medium/long term borrowings (excluding lease liabilities) | -3,226 | -362 |
| Repayments of lease liabilities | - 9 |
-9 |
| Net change in other current and non-current financial liabilities | - 211 |
372 |
| Accrued interest on equity instruments | 12 | - |
| Differences relating to cash generated from/(used in) financing activities (E) | -1,751 | 3,334 |
| Net cash generated from/(used in) financing activities (F=D+E) | -1,048 | 3,313 |
| Decrease in net debt for the period | 974 | 1,252 |
| Differences relating to cash generated from/(used in) investing activities (B) | - 105 |
-157 |
| Differences relating to cash generated from/(used in) financing activities (E) | -1,751 | 3,334 |
| Other changes in net debt | - 222 |
-252 |
| Effect of foreign exchange rate movements on cash and cash equivalents | -11 | -79 |
| Increase/(Decrease) in net cash and cash equivalents during the period | -1,115 | 4,098 |
(*) This item does not include cash and cash equivalents contributed by newly consolidated companies.
Operating segments
Following the corporate reorganisation involving the investment in Pavimental, which resulted in Autostrade per l'Italia acquiring a controlling interest of 59.4%, the subsidiaries, Pavimental and Pavimental Polska were included in the Autostrade per l'Italia group segment in the first quarter of 2021 (these companies' contributions for the first quarter of 2020 are, on the other hand, included in the Atlantia and other activities segment).
The following table shows operating revenue, EBITDA, operating cash flow, capital expenditure and net debt by operating segment (compared with 31 December 2020).
| €M | AUTOSTRADE PER L'ITALIA GROUP |
ABERTIS GROUP | OTHER OVERSEAS MOTORWAYS |
AEROPORTI DI ROMA GROUIP |
AÉROPORTS DE LA CÔTE D'AZUR GROUP |
TELEPASS GROUP |
ATLANTIA AND OTHER ACTIVITIES |
CONSOLIDATION ADJUSTMENTS |
TOTAL ATLANTIA GROUP |
|||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | Q1 2020 |
2021 | Q1 | 2020 2021 2020 | Q1 | 2021 | Q1 | 2020 2021 2020 2021 2020 | Q1 | Q1 | 2021 | Q1 2020 |
2021 | Q1 2020 |
2021 | Q1 2020 |
||
| REPORTED AMOUNTS | ||||||||||||||||||
| External operating revenue | 710 | 716 | 1,069 | 1,044 | 127 | 150 | 39 | 142 | 25 | 49 | 54 | 51 | 1 | 58 | - | - | 2,025 | 2,210 |
| Intersegment operating revenue | 12 | 12 | - | - | - | - | - | - | - | - | 5 | 6 | 4 | 88 | -21 | -106 | - | - |
| Total operating revenue | 722 | 728 | 1,069 | 1,044 | 127 | 150 | 39 | 142 | 25 | 49 | 59 | 57 | 5 | 146 | -21 | -106 | 2,025 | 2,210 |
| EBITDA | 321 | 391 | 709 | 666 | 96 | 116 | -21 | 68 | - | 11 | 21 | 30 | -12 | -9 | 10 | -2 | 1,124 | 1,271 |
| Operating cash flow | 47 | 224 | 430 | 463 | 94 | 99 | -10 | 57 | -2 | 8 | 18 | 25 | -8 | -86 | 12 | - | 581 | 790 |
| Capital expenditure | 164 | 104 | 95 | 95 | 42 | 59 | 46 | 63 | 12 | 11 | 25 | 18 | - | 2 | - | 9 | 384 | 361 |
| Net debt | 8,916 8,557 22,611 23,805 | -684 | -636 1,513 1,426 | 967 | 976 | 712 | 557 4,336 4,612 | -107 | -59 38,264 | 39,238 |
Like-for-like performance indicators by operating segment
Operating revenue
| Q1 2021 | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| €M | AUTOSTRADE PER L'ITALIA GROUP |
ABERTIS GROUP |
OTHER OVERSEAS MOTORWAYS |
AEROPORTI DI ROMA GROUP |
AÉROPORTS DE LA CÔTE D'AZUR GROUP |
TELEPASS GROUP |
ATLANTIA AND OTHER ACTIVITIES |
CONSOLIDATION ADJUSTMENTS |
TOTAL ATLANTIA GROUP |
| Reported amounts (A) | 722 | 1,069 | 127 | 39 | 25 | 59 | 5 | -21 | 2,025 |
| Adjustments for non like-for-like items |
|||||||||
| Change in scope of consolidation | 27 | 118 | - | - | - | - | -27 | - | 118 |
| Exchange rate movements and impact of hyperinflation |
- | -49 | -16 | - | - | - | - | - | -65 |
| Sub-total (B) | 27 | 69 | -16 | - | - | - | -27 | - | 53 |
| Like-for-like amounts (C) = (A)-(B) | 695 | 1,000 | 143 | 39 | 25 | 59 | 32 | -21 | 1,972 |
| Q1 2020 | |||||||||
| Reported amounts (A) | 728 | 1,044 | 150 | 142 | 49 | 57 | 146 | -106 | 2,210 |
| Adjustments for non like-for-like items |
|||||||||
| Change in scope of consolidation | - | 21 | - | - | - | - | 17 | - | 38 |
| Impact of hyperinflation | - | 1 | - | - | - | - | - | - | 1 |
| Impact connected with collapse of a section of the Polcevera road bridge |
-4 | - | - | - | - | - | - | - | -4 |
| Sub-total (B) | -4 | 22 | - | - | - | - | 17 | - | 35 |
| Like-for-like amounts (C) = (A)-(B) | 732 | 1,022 | 150 | 142 | 49 | 57 | 129 | -106 | 2,175 |
| Like-for-like change | -37 | -22 | -7 | -103 | -24 | 2 | -97 | 85 | -203 |
| % like-for-like change | -5% | -2% | -5% | -73% | -49% | 4% | -75% | n/s | -9% |
EBITDA
| Q1 2021 | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| €M | AUTOSTRADE PER L'ITALIA GROUP |
ABERTIS GROUP |
OTHER OVERSEAS MOTORWAYS |
AEROPORTI DI ROMA GROUP |
AÉROPORTS DE LA CÔTE D'AZUR GROUP |
TELEPASS GROUP |
ATLANTIA AND OTHER ACTIVITIES |
CONSOLIDATION ADJUSTMENTS |
TOTAL ATLANTIA GROUP |
| Reported amounts (A) | 321 | 709 | 96 | -21 | - | 21 | -12 | 10 | 1,124 |
| Adjustments for non like-for-like items |
|||||||||
| Change in scope of consolidation | -6 | 90 | - | - | - | - | 6 | - | 90 |
| Exchange rate movements and impact of hyperinflation |
- | -26 | -10 | - | - | - | - | - | -36 |
| Change in discount rate applied to provisions |
2 | - | - | - | - | - | - | - | 2 |
| Sub-total (B) | -4 | 64 | -10 | - | - | - | 6 | - | 56 |
| Like-for-like amounts (C) = (A)-(B) | 325 | 645 | 106 | -21 | - | 21 | -18 | 10 | 1,068 |
| Q1 2020 | |||||||||
| Reported amounts (A) | 391 | 666 | 116 | 68 | 11 | 30 | -9 | -2 | 1,271 |
| Adjustments for non like-for-like items |
|||||||||
| Change in scope of consolidation | - | 15 | - | - | - | - | 2 | - | 17 |
| Impact connected with collapse of a section of the Polcevera road bridge |
-4 | - | - | - | - | - | - 1 |
- | -5 |
| Sub-total (B) | -4 | 15 | - | - | - | - | 1 | - | 12 |
| Like-for-like amounts (C) = (A)-(B) | 395 | 651 | 116 | 68 | 11 | 30 | -10 | -2 | 1,259 |
| - | |||||||||
| Like-for-like change | -70 | -6 | -10 | 89 | -11 | -9 | -8 | 12 | -191 |
| % like-for-like change | -18% | -1% | -9% | n/s | -100% | -30% | 80% | n/s | -15% |
Operating cash flow
| Q1 2021 | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| €M | AUTOSTRADE PER L'ITALIA GROUP |
ABERTIS GROUP |
OTHER OVERSEAS MOTORWAYS |
AEROPORTI DI ROMA GROUP |
AÉROPORTS DE LA CÔTE D'AZUR GROUP |
TELEPASS GROUP |
ATLANTIA AND OTHER ACTIVITIES |
CONSOLIDATIO N ADJUSTMENTS |
TOTAL ATLANTIA GROUP |
| Reported amounts (A) | 47 | 430 | 94 | - 10 |
- 2 |
18 | -8 | 12 | 581 |
| Adjustments for non like-for-like items |
|||||||||
| Change in scope of consolidation | -5 | 27 | - | - | - | - | 5 | - | 27 |
| Exchange rate movements and impact of hyperinflation |
- | -23 | -8 | - | - | - | - | - | -31 |
| Impact connected with collapse of a section of the Polcevera road bridge |
-50 | - | - | - | - | - | - | - | -50 |
| Change in discount rate applied to provisions |
- 1 |
- | - | - | - | - | - | - | -1 |
| Sub-total (B) | -56 | 4 | -8 | - | - | - | 5 | - | -55 |
| Like-for-like amounts (C) = (A)-(B) | 103 | 426 | 102 | - 10 |
-2 | 18 | -13 | 12 | 636 |
| Q1 2020 | |||||||||
| Reported amounts (A) | 224 | 463 | 99 | 57 | 8 | 25 | -86 | - | 790 |
| Adjustments for non like-for-like items |
|||||||||
| Change in scope of consolidation | - | 10 | - | - | - | - | 1 | - | 11 |
| Impact connected with collapse of a section of the Polcevera road bridge |
-39 | - | - | - | - | - | -1 | - | -40 |
| Sub-total (B) | -39 | 10 | - | - | - | - | - | - | -29 |
| Like-for-like amounts (C) = (A)-(B) | 263 | 453 | 99 | 57 | 8 | 25 | -86 | - | 819 |
| Like-for-like change | -160 | -27 | 3 | -67 | -10 | -7 | 73 | 12 | -183 |
| % like-for-like change | -61% | -6% | 3% | n/s | n/s | -28% | -85% | n/s | -22% |
Reconciliation of net financial debt with net debt
Net financial debt is presented below as a synthetic indicator of the financial structure and is based on the nominal redemption value of bond issues, medium/long-term and short-term borrowings, after deducting cash.
The statement has been prepared to enable readers to assess the Group's financial structure, distinguishing between financial liabilities in the form of bank borrowings, and thus in the form of borrowing in the financial market in general, from other types of financial asset and liability.
| €M | 31 MARCH 2021 |
31 DECEMBER 2020 |
INCREASE/ (DECREASE) |
|---|---|---|---|
| Bond issues (nominal value) | 30,759 | 28,616 | 2,143 |
| Bank borrowings (nominal value) | 13,397 | 15,400 | -2,003 |
| Non-current debt, gross (A) | 44,156 | 44,016 | 140 |
| Bond issues (nominal value) | 2,108 | 3,110 | -1,002 |
| Bank borrowings (nominal value) | 2,222 | 2,713 | -491 |
| Short-term borrowings and bank overdrafts repayable on demand | 306 | 416 | -110 |
| Current debt, gross (B) | 4,636 | 6,239 | -1,603 |
| Cash (C) | -7,249 | -8,385 | 1,136 |
| Net financial debt (D=A+B+C) | 41,543 | 41,870 | -327 |
| Amortised cost and fair value of financial liabilities included in gross debt (E) | 92 | 146 | -54 |
| Other current and non-current financial liabilities (F) | 1,417 | 1,667 | -250 |
| Other borrowings (G) | 389 | 376 | 13 |
| Derivative liabilities (H) | 990 | 1,202 | -212 |
| Derivative assets (I) | -468 | -431 | -37 |
| Financial assets deriving from concession rights and other current and non current financial assets (J)(1) |
-5,691 | -5,584 | -107 |
| Net debt related to assets held for sale (K) | -8 | -8 | - |
| Net debt (L=D+E+F+G+H+I+J+K) | 38,264 | 39,238 | -974 |
(1) Includes the line items "Non-current financial assets " and "Current financial assets" net of the line item "Non-current derivative assets ". This item essentially includes financial assets deriving from concession rights (€3,592m as at 31 March 2021) regarding the concessions held by the Group in Spain, Chile and Argentina and Autostrade Meridionali's takeover rights (€415m as at 31 March 2021). The other financial assets included in this item primarily regard term deposits and government grants to fund construction work.
* * *
The Atlantia Group's statutory consolidated income statement, consolidated statement of financial position and consolidated statement of cash flows as at and for the three months ended 31 March 2021 are provided below. Consolidated income statement
| €M | Q1 2021 | Q1 2020 |
|---|---|---|
| REVENUE Toll revenue |
1,694 | 1,751 |
| Aviation revenue | 32 | 120 |
| Revenue from construction services | 187 | 215 |
| Other revenue | 299 | 339 |
| TOTAL REVENUE | 2,212 | 2,425 |
| COSTS | ||
| Raw and consumable materials | -70 | -92 |
| Service costs | -685 | -610 |
| Staff costs | -363 | -356 |
| Other operating costs | -188 | -209 |
| Concession fees | -97 | -105 |
| Lease expense | -8 | -8 |
| Other | -83 | -96 |
| Operating change in provisions | 118 | 16 |
| Provisions/(Uses of provisions) for repair and replacement of motorway infrastructure | 124 | 29 |
| (Provisions)/Uses of provisions for renewal of assets held under concession | 8 | -7 |
| Provisions for risks and charges | -14 | -6 |
| Use of provisions for construction services required by contract | 93 | 87 |
| Amortisation and depreciation | -968 | -903 |
| Depreciation of property, plant and equipment | -43 | -47 |
| Amortisation of intangible assets deriving from concession rights | -896 | -826 |
| Amortisation of other intangible assets | -29 | -30 |
| (Impairment losses)/Reversals of impairment losses | -1 | 1 |
| TOTAL COSTS | -2,064 | -2,066 |
| OPERATING PROFIT/(LOSS) | 148 | 359 |
| Financial income | 232 | 215 |
| Financial income accounted for as an increase in financial assets deriving from | 61 | 67 |
| concession rights and government grants | ||
| Other financial income | 171 | 148 |
| Financial expenses | -492 | -610 |
| Financial expenses from discounting of provisions for construction services | -3 | -12 |
| required by contract and other provisions | ||
| Other financial expenses | -489 | -598 |
| Foreign exchange gains/(losses) | -11 | 13 |
| FINANCIAL INCOME/(EXPENSES) | -271 | -382 |
| Share of (profit)/loss of investees accounted for using the equity method | -9 | -2 |
| PROFIT/(LOSS) BEFORE TAX FROM CONTINUING OPERATIONS | -132 | -25 |
| Income tax benefit/(expense) | 14 | -4 |
| Current tax expense | -103 | |
| Differences on tax expense for previous years | ||
| -89 | ||
| 5 | -2 | |
| Deferred tax income and expense PROFIT/(LOSS) FROM CONTINUING OPERATIONS |
98 -118 |
101 -29 |
| Profit/(Loss) from discontinued operations | - | - |
| LOSS FOR THE PERIOD | -118 | -29 |
| of which: Loss for the year attributable to owners of the parent |
-67 | -10 |
Consolidated statement of financial position
| €M | 31 MARCH 2021 | 31 DECEMBER 2020 |
|---|---|---|
| ASSETS | ||
| NON-CURRENT ASSETS | ||
| Property, plant and equipment | 759 | 774 |
| Property, plant and equipment | 758 | 773 |
| Investment property | 1 | 1 |
| Intangible assets | 61,767 | 62,497 |
| Intangible assets deriving from concession rights | 48,485 | 49,229 |
| Goodwill | 12,785 | 12,785 |
| Other intangible assets | 497 | 483 |
| Investments | 2,787 | 2,841 |
| Investments accounted for at fair value | 1,387 | 1,442 |
| Investments accounted for using the equity method | 1,400 | 1,399 |
| Non-current financial assets | 4,882 | 4,749 |
| Non-current financial assets deriving from concession rights | 3,035 | 2,931 |
| Non-current financial assets deriving from government grants | 176 | 175 |
| Non-current term deposits | 321 | 249 |
| Non-current derivative assets | 468 | 431 |
| Other non-current financial assets | 882 | 963 |
| Deferred tax assets | 2,404 | 2,469 |
| Other non-current assets | 15 | 38 |
| TOTAL NON-CURRENT ASSETS | 72,614 | 73,368 |
| CURRENT ASSETS | ||
| Trading assets | 2,563 | 2,438 |
| Inventories | 118 | 114 |
| Contract assets | 61 | 48 |
| Trade receivables | 2,384 | 2,276 |
| Cash and cash equivalents | 7,249 | 8,385 |
| Cash | 5,175 | 6,633 |
| Cash equivalents | 2,074 | 1,752 |
| Other current financial assets | 1,277 | 1,266 |
| Current financial assets deriving from concession rights | 557 | 553 |
| Current financial assets deriving from government grants | 34 | 58 |
| Current term deposits | 430 | 391 |
| Current portion of medium/long-term financial assets | 97 | 123 |
| Other current financial assets | 159 | 141 |
| Current tax assets | 362 | 404 |
| Other current assets | 705 | 668 |
| Assets held for sale and related to discontinued operations | 31 | 31 |
| TOTAL CURRENT ASSETS | 12,187 | 13,192 |
| TOTAL ASSETS | 84,801 | 86,560 |
| €M | 31 MARCH 2021 |
31 DECEMBER 2020 |
|---|---|---|
| EQUITY AND LIABILITIES | ||
| EQUITY | ||
| Equity attributable to owners of the parent | 6,528 | 6,190 |
| Issued capital | 826 | 826 |
| Reserves and retained earnings | 5,919 | 6,691 |
| Treasury shares | -150 | -150 |
| Profit/(Loss) for the period | -67 | -1,177 |
| Equity attributable to non-controlling interests | 8,413 | 8,074 |
| Issued capital and reserves | 8,464 | 8,540 |
| Profit/(Loss) for the period net of interim dividends | -51 | -466 |
| TOTAL EQUITY NON-CURRENT LIABILITIES |
14,941 | 14,264 |
| Non-current portion of provisions for construction services required by contract |
2,117 | 2,161 |
| Non-current provisions | 2,814 | 2,850 |
| Non-current provisions for employee benefits | 213 | 219 |
| Non-current provisions for repair and replacement obligations | 1,767 | 1,775 |
| Non-current provisions for renewal of assets held under concession | 323 | 341 |
| Other non-current provisions | 511 | 515 |
| Non-current financial liabilities | 46,057 | 46,209 |
| Bond issues | 30,547 | 28,454 |
| Medium/long-term borrowings | 13,848 | 15,877 |
| Non-current derivative liabilities | 896 | 1,134 |
| Other non-current financial liabilities | 766 | 744 |
| Deferred tax liabilities | 6,237 | 6,337 |
| Other non-current liabilities | 284 | 298 |
| TOTAL NON-CURRENT LIABILITIES | 57,509 | 57,855 |
| CURRENT LIABILITIES | ||
| Trading liabilities | 1,916 | 2,160 |
| Current portion of provisions for construction services required by contract |
745 | 816 |
| Current provisions | 2,849 | 2,962 |
| Current provisions for employee benefits | 89 | 98 |
| Current provisions for repair and replacement of motorway infrastructure | 951 | 995 |
| Current provisions for renewal of assets held under concession | 88 | 77 |
| Other current provisions | 1,721 | 1,792 |
| Current financial liabilities Bank overdrafts repayable on demand |
5,623 46 |
7,437 67 |
| Short-term borrowings | 260 | 349 |
| Current derivative liabilities | 94 | 68 |
| Current portion of medium/long-term financial liabilities | 5,078 | 6,819 |
| Other current financial liabilities | 145 | 134 |
| Current tax liabilities | 183 | 89 |
| Other current liabilities | 1,035 | 977 |
| Liabilities related to assets held for sale and discontinued operations | - | - |
| TOTAL CURRENT LIABILITIES | 12,351 | 14,441 |
| TOTAL LIABILITIES | 69,860 | 72,296 |
| TOTAL EQUITY AND LIABILITIES | 84,801 | 86,560 |
Consolidated statement of cash flows
| €M | Q1 2021 | Q1 2020 |
|---|---|---|
| Loss for the period | -118 | -29 |
| Adjusted by: | ||
| Amortisation and depreciation | 968 | 903 |
| Operating change in provisions (*) | -110 | -18 |
| Financial expenses from discounting of provisions for construction services required by contract and other provisions |
3 | 12 |
| Impairment losses/(Reversals of impairment losses) on financial assets and investments accounted for at fair value |
31 | 93 |
| Share of (profit)/loss of investees accounted for using the equity method | 9 | 2 |
| Impairment losses/(Reversals of impairment losses) and adjustments of current and non-current assets |
1 | -1 |
| Net change in deferred tax (assets/(liabilities) through profit or loss | -98 | -101 |
| Other non-cash costs (income) | -105 | -71 |
| Change in trading assets and liabilities and other non-financial assets and liabilities | -217 | 509 |
| Net cash generated from operating activities [a] | 364 | 1,299 |
| Investment in assets held under concession | -301 | -313 |
| Purchase of property, plant and equipment | -33 | -26 |
| Purchase of other intangible assets | -50 | -22 |
| Government grants related to assets held under concession | 1 | 2 |
| Increase in financial assets deriving from concession rights (related to capital expenditure) | 42 | 49 |
| Investment in consolidated companies net of cash acquired | -2 | -2 |
| Proceeds from sale of property, plant and equipment, intangible assets and unconsolidated investments |
11 | 2 |
| Net change in other non-current assets | 19 | 32 |
| Net change in current and non-current financial assets | -107 | -157 |
| Net cash generated used in investing activities [b] | -420 | -435 |
| Dividends paid by Group companies to non-controlling shareholders | -7 | -11 |
| Distribution of reserves and returns of capital to non-controlling shareholders | - | -4 |
| Issue of equity instruments | 734 | - |
| Issuance of bonds | 2,051 | 593 |
| Increase in medium/long term borrowings (excluding lease liabilities) | 635 | 4,279 |
| Redemption of bonds | -1,015 | -1,545 |
| Repayments of medium/long term borrowings (excluding lease liabilities) | -3,226 | -362 |
| Repayments of lease liabilities | -9 | -9 |
| Net change in other current and non-current financial liabilities | -211 | 372 |
| Net equity cash inflows/(outflows) [c] | -1,048 | 3,313 |
| Net effect of foreign exchange rate movements on net cash and cash equivalents | ||
| equivalents [d] | -11 | -79 |
| Increase/(Decrease) in net cash and cash equivalents for period [a+b+c+d] | -1,115 | 4,098 |
| NET CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 8,318 | 5,202 |
| NET CASH AND CASH EQUIVALENTS AT END OF PERIOD | 7,203 | 9,300 |
(*) This item does not include uses of provisions for the renewal of assets held under concession and includes uses of provisions for risks and charges.