AI Terminal

MODULE: AI_ANALYST
Interactive Q&A, Risk Assessment, Summarization
MODULE: DATA_EXTRACT
Excel Export, XBRL Parsing, Table Digitization
MODULE: PEER_COMP
Sector Benchmarking, Sentiment Analysis
SYSTEM ACCESS LOCKED
Authenticate / Register Log In

Poste Italiane

Earnings Release May 10, 2017

4431_10-q_2017-05-10_b7a8a624-c7d1-47f6-b983-26819dbef3d9.pdf

Earnings Release

Open in Viewer

Opens in native device viewer

Informazione
Regolamentata n.
1130-37-2017
Data/Ora Ricezione
10 Maggio 2017
17:37:31
MTA
Societa' : POSTE ITALIANE
Identificativo
Informazione
Regolamentata
: 89221
Nome utilizzatore : POSTEN03 - Fabio Ciammaglichella
Tipologia : IRAG 03
Data/Ora Ricezione : 10 Maggio 2017 17:37:31
Data/Ora Inizio
Diffusione presunta
: 10 Maggio 2017 17:37:32
Oggetto : March 31, 2017 Poste Italiane: BoD approves results as of
Testo del comunicato

Vedi allegato.

POSTE ITALIANE: BOARD OF DIRECTORS APPROVES RESULTS AS OF 31 MARCH 2017

  • Total consolidated revenues: € 9.5 billion, -2.3% (€ 9.8 billion in Q1 2016)
  • Consolidated operating profit: € 526 million, -6.4% (€ 562 million in Q1 2016)
  • Consolidated net profit: € 351 million, -4.4% (€ 367 million in Q1 2016)
  • Client assets under management/administration: € 498 billion, +1% (€ 493 billion at YE 2016)

Rome, 10 May 2017 – The Board of Directors of Poste Italiane S.p.A. ("Poste Italiane"), chaired by Maria Bianca Farina, reviewed and approved today the Interim Financial Report as of 31 March 2017, drawn up in compliance with the measurement, recognition and classification criteria laid down by international accounting standards (IAS/IFRS).

Q1 2017 Q1 2016 Change
Total revenue 9,539 9,759 -2.3%
Operating profit 526 562 -6.4%
Net profit 351 367 -4.4%
31.3.2017 31.12.2016
Client assets under
management/administration
498,435 493,347 +1.0%
Net industrial financial position
Surplus 103 893 n.m.

Consolidated economic and financial highlights (EUR/million):

Matteo Del Fante, Chief Executive Officer and General Manager, commented on the results as follows:

"I am extremely proud to have been appointed Chief Executive Officer of Poste Italiane, a Group which I had the pleasure to appreciate during my previous professional experiences.

In the weeks since my appointment I have been working closely with the management team - to whom I extend my thanks – in order to ensure the continuity of the Company's managerial and operating processes.

Regarding the Q1 results, total revenues were substantially in line with the same period of last year, despite the sharp contraction in the insurance market as well as the inevitable decline in traditional mail. On the other hand, the parcels and logistics segments grew significantly compared to the same period of the previous year.

The next few months will be key to the preparation of the new strategic plan which will enable the Group to continue its pursuit of growth. In particular we will be focusing on broadening our product offering in insurance and asset management. With regards to financial services, we will concentrate on reinforcing payment systems, leveraging our client base and our recent acquisition of the SIA stake. We will also give further impetus to developing innovative services for the public administration. On the postal-logistics front, we will continue to strengthen our parcels business, driven by e-commerce and ongoing improvements on the quality of postal services.

All this will help strengthen the Group's cash generation in support of our 2017 dividend policy, which we will be finalising over the next few months and we expect to be reasonably similar to the last two years."

* * *

In addition to the standard financial indicators required by IFRS, Poste Italiane also utilises a number of alternative performance indicators, with a view to providing a clearer assessment of the business performance and financial position. The meaning and makeup of such indicators are described in the annex, in line with the ESMA/2015/1415 Guidelines of 5 October 2015.

* * *

In the first quarter of 2017, the Group's total revenues, inclusive of insurance premiums, fell -2.3% compared with the same period of the previous year, to € 9.5 billion. The Insurance Services and Asset Management segment, in a market that has seen a sharp contraction in insurance premiums, contributed € 7.1 billion of total revenues, with a slight decline of -2.1%. Financial Services also fell slightly, recording revenues of € 1.5 billion (- 2.4%) and Postal and Business Services posted revenues of € 914 million (-2.4%), reflecting the structural decline in mail volumes in Italy (-9%). Revenues for the Express Delivery, Logistics and Parcels segment grew to € 174 million, up 11% compared with the same period of the previous year.

The operating profit, of € 526 million, decreased by -6.4% compared with the same period of the previous year (€ 562 million). The decrease was due to lower revenues from Postal and Business Services and Financial Services, only partially offset by the stronger result in Insurance Services and Asset Management.

The net profit is € 351 million, also showing a slight decline versus €367 million in the same period of the previous year.

The Group net financial position shows a €4.3 billion surplus versus €6.2 billion at yearend 2016, mainly due to a €1,649 million decrease in the fair value of the financial instruments. The cash generated by operating activities was € 518 million and was used for the acquisition of a stake in FSIA Investimenti for € 222 million as well as for capital expenditure of € 81 million.

The net industrial financial position shows cash for € 103 million.

Capital expenditure for the period, before disposals, comes to € 81 million and is primarily related to the digitalisation of telecommunication networks and to property renovation and restructuring.

During the first quarter of 2017, the client assets under management/administration rose to € 498 billion, up 1% from € 493 billion at year-end 2016. This was attributable mainly to growth in BancoPosta direct deposits to current accounts (+5 billion euros) and in the technical provisions of the Life insurance segment.

As regards the distribution networks, the process of modernisation and digitalisation of post offices continued in Q1 2017 with the roll-out of wi-fi connectivity in 3,585 post offices from the start of the project and the installation of a "new queue management" system already present in 2,078 offices. These initiatives continue to further improve the quality of customer services, including the opening of 26 multilingual offices across the nation to simplify access to the Group's services for "new Italians".

Information on the main operating segments is reported below.

FINANCIAL SERVICES

  • Market revenues of € 1.5 billion, down -2.4%
  • Operating profit down -14.6% to € 228 million
  • BancoPosta's average deposits total € 55 billion, up 10% versus year end 2016
  • 3.7 million Postepay Evolution cards issued and active as of 31 March 2017

Total revenues, of €1.7 billion, showed a decline of -2% primarily attributable to the lower fees from postal savings and interest income on current account deposits, in line with market performance, only in part mitigated by the growth in revenues from active management of the securities portfolio held by Bancoposta, the positive contribution of Postepay cards and the placement fees for loan products.

The operating profit comes to €228 million, down -14.6% from the same period in the previous year (€ 267 million).

BancoPosta's average deposits (including long-term repos) amount to € 54.5 billion, up 10% from € 49.6 billion at year-end 2016.

The number of Postepay Evolution cards – the personal rechargeable prepaid card with IBAN code – issued since the product was first launched (July 2014) has exceeded 3.9 million, with 409,317 cards issued in the first quarter of 2017.

Poste Italiane, through BancoPosta, has continued to strengthen its services for Italian households by expanding the range of consumer loans and mortgages, with different solutions in terms of length, amount and repayment flexibility.

INSURANCE SERVICES AND ASSET MANAGEMENT

  • Insurance and asset management revenues down -2.1% to € 7.1 billion
  • Operating profit of € 155 million, up 43.5%

Total revenues, inclusive of other income from insurance operations, come to € 7.1 billion, down -2.1% compared with the same period of the previous year (€ 7.2 billion), mainly due to the slight fall in insurance premiums, offset by the positive net inflows from mutual funds (fees +77% compared with the same period of the previous year). More specifically, Poste Vita, the leading Italian insurance provider with technical provisions amounting to € 115.3 billion (€ 113.5 billion at the end of December 2016) collected premiums for € 5.9 billion, posting a slight decline of -3.2% compared with Q1 2016, notwithstanding the fall of more than -24% in new production by the Italian insurance market in general in the same period.

Operating profit was € 155 million, up 43.5% compared with the same period of the previous year (€ 108 million), thanks to the increase in assets under management (mutual funds and technical provisions).

POSTAL AND BUSINESS SERVICES

Market revenues of € 914 million, down -2.4% (€ 936 million)

Total revenues amount to € 2.2 billion (inclusive of € 1.3 billion in captive revenue, mainly due to distribution services), down -1.7% compared with the same period of 2016 (€ 2.3 billion). The fall in market revenues for mail services, while less steep than the previous year (-5.4%, versus -5.9% in the same period of 2016), is due to the structural decline in volumes of postal products (-9%).

The slowing in the decline in revenues, besides tariff effects and the growth in the parcels segment is also explained by the measures taken to improve the quality of traditional postal services and the efficiency of the related operating processes.

Parcels posted a 21% growth compared to the same period of 2016, for a total number of 28 million parcels handled in the first quarter of 2017, partly due to the developing growth of e-commerce in Italy.

Operating profit amounted to € 135 million (€ 177 million in the first quarter of 2016) explained - besides the aforementioned contraction of the market in traditional mail deliveries - by smaller intersegment revenues for distribution services provided to the financial segment and settled internally. The fact that total costs were substantially in line with the first quarter of 2016 was also thanks to the lower labour costs due to efficiency measures on the workforce.

RECENT EVENTS AND BUSINESS OUTLOOK

Key events during the period

Please be reminded that, following negotiations during the last quarter of 2016, on 8 February 2017 Poste Italiane signed an agreement to transfer to Invitalia - the national agency for the attraction of investment and business development - the entire equity package of Banca del Mezzogiorno-Medio Credito Centrale (BdM-MCC) for a total value of € 390 million. The operation is expected to close in 2017, subject to approval by the Ministry of Economic Development, the Bank of Italy and the European Central Bank.

On 15 February 2017 - in execution of the preliminary agreement signed on 16 September 2016 between Poste Italiane and CDP for the transfer from FSI Investimenti SpA (controlled by CDP Equity SpA via a 77% stake) to Poste of an indirect shareholding in SIA SpA (amounting to 14.85%), business leader in e-payments, payments and online services - Poste completed the acquisition of a 30% stake in FSIA Investimenti Srl (holder of 49.5% of SIA), owned 100% by FSI Investimenti SpA. On completion of the deal, Poste paid 80% of the acquisition price – expected to come to 278 million euros. The final price might be adjusted, up or down, depending on the results obtained by SIA in its Net Financial Position at the end of 2016 and its operating performance for the full year 2017.

Main events subsequent to 31 March 2017

You are also reminded that the Poste Italiane S.p.A. Ordinary Shareholders' Meeting of 27 April 2017 in Rome, resolved, among other things:

  • to approve the Annual Financial Statements of Poste Italiane S.p.A. as of 31 December 2016;
  • to distribute the profits of Poste Italiane S.p.A. for financial year 2016, amounting to € 625 million: (i) for € 509 million in a shareholders' dividend of € 0.39 for each of the 1,306,110,000 ordinary shares (ii) and € 116 million to "Retained earnings", of which € 110 million to BancoPosta's Ring-Fenced Capital;
  • to elect the Board of Directors, which will remain in office until approval of the Annual Financial Statements for FY 2019, in the persons of: Maria Bianca Farina – Chairman, Giovanni Azzone, Carlo Cerami, Matteo Del Fante, Antonella Guglielmetti, Francesca Isgrò, Mimi Kung, Roberto Rao, Roberto Rossi.

On 28 April 2017 the Board of Directors appointed Matteo Del Fante to serve as Chief Executive Officer and General Manager of the Company.

Business outlook

Poste Group will be working throughout the rest of 2017 to produce a new Business Plan designed to permit further balanced growth for the business, as well as continuing to pursue the Country's path of innovation with particular attention to services for the Public Administration.

In the Logistics-Postal segment the Group will continue the restructuring process already begun in recent years through the use of new automation technologies to support the production process. Our goal will be to raise the efficiency and quality of postal services and improve our competitive positioning in the Express Delivery and Parcels market.

With regard to Financial Services, 2017 will be, among other things, focused on our positioning in transaction banking, with particular focus on growth in receipts and payments, partly through the recent acquisition of the stake in SIA SpA. Meanwhile the Group's efforts will be directed to the valorisation of the client base, through targeted products and services, a refocus on Postal Savings, where work will continue to define the conditions of the agreement governing the provision of intermediation services in favour of CDP SpA, growth in the distribution of consumer credit products and consolidation of "digital banking" business as part of Poste Italiane's wider multichannel strategy. In addition, we will continue to actively manage our portfolio of financial instruments in light of the persisting volatility in international and national financial markets, with the aim of stabilising overall returns in terms of interest income and capital gains.

In addition, on 8 February 2017 a contract was signed between Poste Italiane and Invitalia for the transfer of the entire equity package of Banca del Mezzogiorno. The contract states that with its signing an interim period begins in which specific instructions apply as to how it is to be managed, with particular reference to the development of lending activity. The finalisation of the operation is subject to authorization by the Ministry of Economic Development, the Bank of Italy and the European Central Bank.

In the Insurance Segment, besides consolidating its leadership position in the Life market, the Group will work to extend the penetration of its Mutual Fund products and Class III policies, guaranteeing transparency and the maximum satisfaction of the needs of our clients. We will also continue to grow the protection and welfare segment, partly by strengthening the integrated social security, health and social care model, exploiting Poste Group's assets and social vocation.

The above objectives will all be pursued while reinforcing the Group's cash generation in support of a dividends policy, to be finalised over the next few months, which for FY 2017 we expect to be reasonably similar to that of the last two years.

Regarding the Parent's financial investments, the Company will continue to monitor, as foreseen by the prevailing contractual arrangements, the information made available by MidCo SpA - which controls 51% of Alitalia SAI, and placed in extraordinary administration on 2 May 2017 - in which on 23 December 2014 Poste Italiane subscribed Contingent Convertible Notes for an original value of 75 million euros with a 20-year duration. Over the next six months the airline's continuity will be assisted by a € 600 million bridge loan provided by the Italian state. Based on the information available at the date of this press release regarding the new developments and contractual terms of the notes, the credit granted to MIDCO SpA was valued consistently with the past, pending news which might reduce the uncertainties, at present unquantifiable, regarding its recoverability in accordance with original forecasts.

* * *

Poste Italiane presents its quarterly financial report on a voluntary basis, with a summary picture of the business focusing on the key highlights in compliance with Consob Resolution no. 19770 of 26 October 2016 which gives listed companies whose Member State of origin is Italy, the faculty to voluntarily publish additional periodic financial information besides their annual and half-yearly reports.

The document containing the Interim Financial Report as of 31 March 2017 will be published by 15 May 2017, made available to the public at the Company's head office, on the Company's website (www.posteitaliane.it), on the website of the authorised storage system "eMarket Storage" (), and filed with Borsa Italiana S.p.A. (www.borsaitaliana.it), the Italian stock exchange management company. The disclosure regarding the filing will be issued in due course.

A conference call will be held at 6 p.m. today, 10 May 2017, in order to present the results for the first quarter of 2017 to financial analysts and institutional investors. Journalists will be able to listen to the call. Supporting material will be made available in the "Investors" section of the website www.posteitaliane.it as the conference call begins.

* * *

Tables showing the results of the individual business units (before intersegment eliminations) are provided below, together with the period accounts (consolidated statement of financial position, consolidated statement of profit/loss for the period, consolidated statement of comprehensive income, consolidated statement of changes in equity and condensed consolidated statement of cash flows).

A brief description of the "alternative performance indicators" used is also provided.

The manager responsible for financial reporting, Luciano Loiodice, pursuant to art. 154 bis, paragraph 2 of the Consolidated Law on Finance, declares that the accounting information contained in this release is consistent with the underlying documents, accounting books and records.

* * *

Condensed financial information on the operating segments.

In compliance with the provisions of IFRS 8 – Operating Segments, an operating segment is a component of an entity: a) that engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of the same entity) and b) whose operating results are reviewed regularly by the entity's chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance. Following is the key financial information on the operating segments of Poste Italiane Group.

FINANCIAL SERVICES

Results (EUR/million):

Q1 2017 Q1 2016 Var.
Market revenues 1,518 1,556 -2.4%
Intersegment revenues 159 154 3.2%
Total revenues 1,677 1,710 -1.9%
Operating profit 228 267 -14.6%

INSURANCE SERVICES AND ASSET MANAGEMENT

Results (EUR/million):

Q1 2017 Q1 2016 Var.
Market revenues 7,057 7,210 -2.1%
Intersegment revenues - - -
Total revenues 7,057 7,210 -2.1%
Operating profit 155 108 43.5%

POSTAL AND BUSINESS SERVICES

Results (EUR/million):

Q1 2017 Q1 2016 Var.
Market revenues 914 936 -2.4%
Intersegment revenues 1,334 1,352 -1.3%
Total revenues 2,248 2,288 -1.7%
Operating profit 135 177 -23.7%

* * *

ALTERNATIVE PERFORMANCE INDICATORS

We report below the meaning and content of the "alternative performance indicators", which are not required by IAS/IFRS but have been used in this release with a view to providing a clearer assessment of the Group's operating performance and financial position.

GROUP NET FINANCIAL POSITION: the sum of financial liabilities, insurance technical provisions, financial assets, reinsurers' share of technical provisions, BancoPosta cash and deposits and cash and cash equivalents. This indicator is also given separately for each operating segment.

NET INDUSTRIAL FINANCIAL POSITION: the sum of the net financial position of the Postal and Business Services segment and the net financial position of the Other Services segment, before adjusting for intersegment transactions.

Breakdown of Net Financial Position (EUR/million):

Postal
and
Business
Services
Financial
Services
Insurance
Services
and Asset
Managem
ent
Other
Services
Elimina
tions
Consoli
dated
Balance at 31 March 2017
Financial liabilities (2,499) (60,871) (1,024) (2) 1,826 (62,570)
Technical provisions for insurance
business
(115,494) (115,494)
Financial assets 1,171 58,954 116,751 32 (1,683) 175,225
Technical provisions attributable to
reinsurers
72 72
Cash and deposits attributable to
BancoPosta
2,957 2,957
Cash and cash equivalents 1,393 897 2,144 8 (316) 4,126
Net financial position 65 1,937 2,449 38 (173) 4,316
Net industrial financial position 65 38 103
Balance at 31 December 2016
Financial liabilities (1,947) (59,225) (1,012) (2) 1,265 (60,921)
Technical provisions for insurance
business
(113,678) (113,678)
Financial assets 1,236 58,681 115,596 29 (1,180) 174,362
Technical provisions attributable to
reinsurers
66 66
Cash and deposits attributable to
BancoPosta
2,494 2,494
Cash and cash equivalents 1,556 1,320 1,324 21 (319) 3,902
Net financial position 845 3,270 2,296 48 (234) 6,225
Net industrial financial position 845 48 893

* * *

For further information:

Poste Italiane S.p.A. – Press Office Pierpaolo Cito Head of Press Office

Tel. +39 0659589008 Mail [email protected]

Poste Italiane S.p.A. – Investor Relations Luca Torchia Head of Investor Relations Tel. +39 0659589421 Mail [email protected]

FINANCIAL STATEMENTS OF POSTE ITALIANE GROUP

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(€m)
ASSETS at 31 March 2017 at 31 December 2016
Non-current assets
Property, plant and equipment 2,026 2,080
Investment property 55 56
Intangible assets 506 513
Investments accounted for using the equity method 501 218
Financial assets 158,146 155,819
Trade receivables 4 4
Deferred tax assets 1,039 799
Other receivables and assets 3,073 2,682
Technical provisions attributable to reinsurers
Total
72
165,422
66
162,237
Current assets
Inventories 137 137
Trade receivables 2,674 2,168
Current tax assets 15 15
Other receivables and assets 807 989
Financial assets 17,079 18,543
Cash and deposits attributable to BancoPosta 2,957 2,494
Cash and cash equivalents 4,126 3,902
Total 27,795 28,248
Non-current assets and disposal groups held for sale 2,665 2,720
TOTAL ASSETS 195,882 193,205
LIABILITIES AND EQUITY at 31 March 2017 at 31 December 2016
Equity
Share capital 1,306 1,306
Reserves 1,194 2,374
Retained earnings 4,805 4,454
Equity attributable to owners of the Parent 7,305 8,134
Equity attributable to non-controlling interests - -
Total 7,305 8,134
Non-current liabilities
Technical provisions for insurance business 115,494 113,678
Provisions for risks and charges 700 658
Employee termination benefits and pension plans 1,299 1,347
Financial liabilities 6,871 8,404
Deferred tax liabilities 517 746
Other liabilities 1,050 1,071
Total 125,931 125,904
Current liabilities
Provisions for risks and charges 909 849
Trade payables 1,398 1,506
Current tax liabilities 257 88
Other liabilities 2,339 2,147
Financial liabilities
Total
55,699
60,602
52,517
57,107
Liabilities related to assets held for sale 2,044 2,060
TOTAL EQUITY AND LIABILITIES 195,882 193,205

CONSOLIDATED STATEMENT OF PROFIT/LOSS FOR THE PERIOD

(€m)
For the three
months ended 31
March 2017
For the three
months ended 31
March 2016
Revenue from sales and services
Insurance premium revenue
2,095
5,916
2,161
6,116
Other income from financial and insurance activities 1,513 1,467
Other operating income 15 15
Total revenue 9,539 9,759
Cost of goods and services 592 600
Net change in technical provisions for insurance business and other claims
expenses
6,574 6,728
Other expenses from financial and insurance activities 135 197
Personnel expenses
Depreciation, amortisation and impairments
Capitalised costs and expenses
Other operating costs
1,480
142
(9)
99
1,505
151
(4)
20
Operating profit/(loss) 526 562
Finance costs
Finance income
Profit/(Loss) on investments accounted for using the equity method
23
25
4
28
31
3
Profit/(Loss) before tax 532 568
Income tax expense 181 201
PROFIT FOR THE PERIOD 351 367
of which, attributable to owners of the Parent
of which, attributable to non-controlling interests
351
-
367
-
Earnings per share 0.269 0.281
Diluted earnings per share 0.269 0.281

11

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(€m) (€m)
For the three
months ended
31 March 2017
For the year
ended 31
December
2016
For the three
months ended
31 March 2016
Profit/(Loss) for the period 351 622 367
Items to be reclassified in the Statement of profit or loss for the period
Available-for-sale financial assets
Increase/(decrease) in fair value during the period (1,197) (1,673) (198)
Transfers to profit or loss (438) (592) (369)
Cash flow hedges
Increase/(decrease) in fair value during the period (10) (15) 43
Transfers to profit or loss (4) (22) (17)
Taxation of items recognised directly in, or transferred from, equity to be reclassified in the Statement of
profit or loss for the period
473 627 153
Share of after-tax comprehensive income/(loss) of investees accounted for using equity method - - -
After-tax increase/(decrease) in reserves related to group of assets and liabilites held for sale (4) - -
Items not to be reclassified in the Statement of profit or loss for the period
Actuarial gains/(losses) on provisions for employee termination benefits and pension plans - (51) -
Taxation of items recognised directly in, or transferred from, equity not to be reclassified in the Statement
of profit or loss for the period
- 18 -
Share of after-tax comprehensive income/(loss) of investees accounted for using equity method - -
Total other comprehensive income (1,180) (1,708) (388)
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD (829) (1,086) (21)
of which, attributable to owners of the Parent (829) (1,086) (21)
of which, attributable to non-controlling interests - - -

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

(€m)
Reserves Equity
Share capital Legal reserve BancoPosta RFC reserve Fair value
reserve
Cash flow
hedge reserve
Reserves related
to disposal
groups and
liabilites held for
sale
Reserve for
investees
accounted for
using equity method
Retained
earnings /
(Accumulated
losses)
Total equity
attributable to
owners of the Parent
Equity
attributable to
non
controlling
interests
Total equity
Balance at 1 January 2016 1,306 299 1,000 2,739 9 - - 4,305 9,658 - 9,658
Total comprehensive income for the period - - - (407) 19 - - 367 (21) - (21)
Attribution of profit to reserves - - - - - - - - - - -
Dividends paid - - - - - - - - - - -
Changes due to share-based payments - - - - - - - - - - -
Other changes - - - - - - - - - - -
Change in scope of consolidation - - - - - - - - - - -
Other shareholder transactions - - - - - - - - - - -
Balance at 31 March 2016 1,306 299 1,000 2,332 28 - -
4,672
9,637 - 9,637
Total comprehensive income for the period - - - (1,241) (46) - - 222 (1,065) - (1,065)
Attribution of profit to reserves - - - - - - - - - - -
Dividends paid - - - - - - - (444) (444) - (444)
Changes due to share-based payments - - - - - - - - - - -
Other changes - - - - - - 2 - 2 - 2
Reclassifications to reserves related to disposal groups and liabilites held for
sale
- - - 1
-
(1) - - - - -
Change in scope of consolidation - - - - - - - - - - -
Other shareholder transactions
Amount due from MEF following cancellation of EC Decision of 16 July
2008
-
-
-
-
-
-
-
-
-
-
- - 4
6
4
6
-
-
4
6
Taxation - - - - - (1) (1) - (1)
Balance at 31 December 2016 1,306 299 1,000 1,092 (18) (1) 2
4,454
8,134 - 8,134
Total comprehensive income for the period - - - (1,166) (10) (4) - 351 (*) (829) - (829)
Attribution of profit to reserves - - - - - - - - - - -
Dividends paid - - - - - - - - - - -
Changes due to share-based payments - - - - - - - - - - -
Other changes - - - - - - - - - - -
Change in scope of consolidation - - - - - - - - - - -
Other shareholder transactions - - - - - - - - - - -
Balance at 31 March 2017 1,306 299 1,000 (74) (28) (5) 2
4,805
7,305 - 7,305

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(€m)
For the three For the three
months ended months ended
31 March 2017 31 March 2016
Unrestricted net cash and cash equivalents at beginning of period 2,292 1,783
Cash subject to investment restrictions 780 1
Cash attributable to technical provisions for insurance business 799 1,324
Amounts that cannot be drawn on due to court rulings 12 11
Current account overdrafts 2 5
Cash received on delivery (restricted) and other restrictions 17 18
Cash and cash equivalents at beginning of period 3,902 3,142
Cash and cash equivalents at beginning of period
Profit/(loss) for the period
3,902
351
3,142
367
Depreciation, amortisation and impairments 142 151
Losses and impairments/(recoveries) on receivables 10 7
(Gains)/Losses on disposals (1) -
Impairment of disposal groups 2 -
(Increase)/decrease in inventories - (1)
(Increase)/decrease in receivables and other assets (744) (194)
Increase/(decrease) in payables and other liabilities 197 359
Movement in group of assets and liabilites held for sale 26 -
Movement in provisions for risks and charges 106 9
Movement in provisions for employee termination benefits and pension plans (48) (25)
Differences in accrued finance costs and income (cash correction) 12 7
Other changes 5 (10)
Net cash flow generated by/(used in) non-financial operating activities [a] 58 670
Increase/(decrease) in liabilities attributable to financial activities 1,929 1,388
Net cash generated by/(used for) held for trading financial assets attributable to financial activities - -
Net cash generated by/(used for) available-for-sale financial assets attributable to financial activities 14 (616)
Net cash generated by/(used for) held-to-maturity financial assets attributable to financial activities (212) 103
(Increase)/decrease in cash and deposits attributable to BancoPosta (463) 338
(Increase)/decrease in other assets attributable to financial activities (790) (508)
(Income)/expenses from financial activities (610) (599)
Cash generated by/(used for) assets and liabilities attributable to financial activities [b] (132) 106
Net cash generated by/(used for) financial assets at fair value through profit or loss attributable to insurance activities (1,381) (1,347)
Increase/(decrease) in net technical provisions for insurance business 3,890 4,266
Net cash generated by/(used for) available-for-sale financial assets attributable to insurance activities (999) (2,132)
(increase)/decrease in other assets attributable to insurance activities (46) (114)
(Gains)/losses on financial assets/liabilities measured at fair value (238) (322)
(Income)/expenses from insurance activities (634) (511)
Cash generated by/(used for) assets and liabilities attributable to insurance activities
Net cash flow from/(for) operating activities
[c]
[d]=[a+b+c]
592
518
(160)
616
Investing activities
Property, plant and equipment, investment property and intangible assets (81) (62)
Investments (227) -
Other financial assets - (103)
Disposals
Property, plant and equipment, investment property and intangible assets and assets held for sale 2 2
Investments - -
Other financial assets 6 -
Change in scope of consolidation - -
Net cash flow from/(for) investing activities [e] (300) (163)
Proceeds from/(Repayments of) borrowings 6 (502)
(Increase)/decrease in loans and receivables - -
Dividends paid - -
Net cash flow from/(for)financing activities and shareholder transactions [f] 6 (502)
Net increase/(decrease) in cash [g]=[d+e+f] 224 (49)
Cash and cash equivalents at end of period 4,126 3,093
Cash and cash equivalents at end of period 4,126 3,093
Cash subject to investment restrictions (435) -
Cash attributable to technical provisions for insurance business (1,848) (1,301)
Amounts that cannot be drawn on due to court rulings (13) (13)
Current account overdrafts - (12)
Cash received on delivery (restricted) and other restrictions (20) (11)
Unrestricted net cash and cash equivalents at end of period 1,810 1,756

Talk to a Data Expert

Have a question? We'll get back to you promptly.