Earnings Release • Oct 30, 2020
Earnings Release
Open in ViewerOpens in native device viewer
| Informazione Regolamentata n. 1155-44-2020 |
Data/Ora Ricezione 30 Ottobre 2020 13:00:16 |
MTA - Star | ||
|---|---|---|---|---|
| Societa' | : | TESMEC | ||
| Identificativo Informazione Regolamentata |
: | 138607 | ||
| Nome utilizzatore | : | TESMECN03 - Turani | ||
| Tipologia | : | REGEM | ||
| Data/Ora Ricezione | : | 30 Ottobre 2020 13:00:16 | ||
| Data/Ora Inizio Diffusione presunta |
: | 30 Ottobre 2020 13:00:17 | ||
| Oggetto | : | Tesmec - The BoD approved the Interim consolidated financial report as at 30 September 2020 |
||
| Testo del comunicato |
Vedi allegato.
TESMEC S.P.A.: THE BOARD OF DIRECTORS APPROVED THE INTERIM CONSOLIDATED FINANCIAL REPORT AS AT 30 SEPTEMBER 2020, WHICH RECORDS IN THE THIRD QUARTER REVENUES IN LINE WITH THE PERFORMANCE OF THE PREVIOUS YEAR, A GROWING MARGIN AND AN IMPROVEMENT IN NET FINANCIAL INDEBTEDNESS.
BUSINESS PLAN GUIDELINES AND 2020 GUIDANCE CONFIRMED
1 The pro-forma results were prepared for illustrative purposes only, and were obtained by making appropriate pro-forma adjustments to the historical data to retroactively highlight the effects of the 4Service Group's transaction, as if this transaction had occurred on 1st January 2020, instead of on 23 April 2020. The pro-forma results therefore include the result of the 4Service Group on nine months basis, instead of just the results achieved within the perimeter of the Tesmec Group from the date of first consolidation (April 23, 2020).
2 The EBITDA is represented by the operating income gross of amortization/depreciation. The EBITDA thus defined represents a measurement used by Company management to monitor and assess the company's operating performance. EBITDA is not recognized as a measure of performance by the IFRS and therefore is not to be considered an alternative measurement for assessing the performance of the Group's operating income. As the composition of EBITDA is not governed by the reference accounting standards, the criterion for determination applied by the Group may not be in line with the criterion adopted by others and is therefore not comparable.
Grassobbio (Bergamo - Italy), 30 October 2020 – The Board of Directors of Tesmec S.p.A. (MTA, STAR: TES) ("Tesmec" or the "Company"), at the head of a group leader in the market of technologies for infrastructures (overhead, underground and railway networks) related to the transport of energy, data and materials (oil and derivatives, gas and water), and of technologies in surface mining, convened today and chaired by Ambrogio Caccia Dominioni, examined and approved the Interim consolidated financial report as at 30 September 2020, influenced by the actions taken by public authorities during the first half to contain the spread of the pandemic COVID-19, which recorded in the third quarter revenues in line with the previous year, an improvement in margins and a reduction of the net financial indebtedness compared to 30 June 2020, confirming the improvement trend expected for the end of the year. Tesmec also recorded an order backlog of Euro 238.0 million, up compared to 30 June 2020.
Assuming that the current pandemic situation does not get worse with extremely more stringent measures compared to those introduced by the last DPCM in October, the Group confirms the expectations for the 2020 closing, with revenues of around Euro 170 million, EBITDA of Euro 22-24 million and Debt/EBITDA of around 5.4x, with cash generation in the last quarter of 2020 resulting from the actions on net working capital and the contraction in investments.
The Chairman and CEO Ambrogio Caccia Dominioni commented as follows: "We are satisfied with the results of the third quarter of 2020 which recorded revenues in line with 2019 performance, an increase in margins, also thanks to the role of the rental business, and an improvement in net financial indebtedness. We favored cash and profitability avoiding some deals that did not guarantee a proper level of margins. Order acquisition is up compared to June, especially in the Energy Automation segment. The international scenario is not easy due to the second wave of the COVID pandemic, but the Group's strategies are strong and what is happening in the last few days has not changed our expectations. Therefore, the medium to long-term growth drivers that are based on strategic pillars of the energy transition, digitization and sustainability are confirmed. We expect the year-end targets to be confirmed."
As at 30 September 2020 consolidated proforma Revenues of Tesmec Group amount to Euro 119.0 million (Euro 116.8 million non-proforma), compared to Euro 144.2 million as at 30 September 2019. This decrease, generated during the first half, is affected by the slowdown in production activities following the health emergency from COVID-19, the stops of the movement of goods and the consequent lockdown. The Group reached full operation in June achieving consolidated revenues in the third quarter of Euro 46.0 million, in line with the performance of the third quarter of the previous year.
| Results as at 30 September | Revenues from sales and services | ||
|---|---|---|---|
| (Euro in thousands) | 2020 | 2019 | Change |
| Trencher proforma | 68,381 | 89,398 | -23.5% |
| Effect on Consolidated Revenues | 57.5% | 62.0% | |
| Railway | 21,428 | 23,329 | -8.1% |
| Effect on Consolidated Revenues | 18.0% | 16.2% | |
| Energy | 29,187 | 31,481 | -7.3% |
| Effect on Consolidated Revenues | 24.5% | 21.8% | |
| Consolidated pro-forma | 118,996 | 144,208 | -17.5% |
In detail, the proforma revenues of the Trencher sector, including the rental activity of the 4Service Group, amount to Euro 68.4 million, with a decrease of 23.5% compared to Euro 89.4 million as at 30 September 2019. This performance was affected by the slowdown in logistics and rental activities, as well as by the production and transport blocks in the first half of the year; during the third quarter the impact was stabilized thanks to the return to full operation. Therefore, the fourth quarter is expected to be better compared to the fourth quarter in 2019. The non-proforma revenues of the Trencher sector amounted to Euro 66.2 million. The commercial activities did not have significant contractions, and, in fact, the confirmed order backlog of the Trencher sector amounted to Euro 92 million as at 30 September 2020 (compared to Euro 70.9 million at 30 September 2019).
The Railway segment recorded Revenues as at 30 September 2020 of Euro 21.4 million, with a decrease of 8.1% compared to the Euro 23.3 million as at 30 September 2019. This trend is essentially due to the slowdown in activities and the temporary closure of the Monopoli plant in March and April. During the third quarter, production levels maintained full operation ensuring better performance than last year, the fourth quarter is projected in line with the expectations of the period. Also in this sector there was no reduction in commercial activities: the confirmed order backlog was, in fact, equal to Euro 69 million as at 30 September 2020 and including the provisional award of the RFI - Rete Ferroviaria Italiana SpA - tender, called for the production of diagnostic vehicles of the railway network, for around Euro 50 million in the three-year period, the order backlog would amount to around Euro 119.0 million (compared to Euro 96.7 million as at 30 September 2019).
With reference to the Energy segment, Revenues as at 30 September 2020 were Euro 29.2 million, with a decrease of 7.3% compared to Euro 31.5 million as at 30 September 2019. In particular, the Stringing segment recorded revenues of Euro 20.9 million, compared to Euro 23.5 million as at 30 September 2019, with a reduction in turnover due to the slowdown and blocks of production activities from March to the first days of May. The Energy-Automation segment recorded revenues of Euro 8.2 million compared to Euro 7.9 million as at 30 September 2019, recovering in the third quarter the gap generated by the slowdown of production and transport blocks of the first half and, therefore, confirming the growth expectations for this segment in the short and medium term. The third quarter recorded a better performance than last year, confirming the improvement trend and the year-end outlook. The commercial activities of the two segments have had a strong push and in fact the confirmed order backlog amounted to Euro 77,0 million (compared to Euro 30.4 million as at 30 September 2019).
In geographic terms, Tesmec Group keeps the percentage distribution of sales in line with the first nine months of 2019 with a focus in Italy, Europe and North America.
Proforma EBITDA, including the rental activity of 4Service Group, was Euro 17.6 million, compared to Euro 17.4 million as at 30 September 2019. In the third quarter the Group, after facing a first half characterized by a decrease of margins due to the reduction in turnover and after taking the necessary measures in order to contain its costs and improve the efficiency of the corporate structure, recorded higher margins compared to the previous year, thanks to the support of the rental business and to the focus on the cost management. In this regard, it should be noted that the proforma EBITDA in the third quarter was Euro 7.5 million, 16.4% on revenues, compared to Euro 5.3 million of the previous year (11.4% on revenues). The non-proforma EBITDA amounted to Euro 15.7 million in the first nine months.
The proforma EBIT of the Tesmec Group as at 30 September 2020 was Euro 0.4 million, compared to Euro
3.9 million as at 30 September 2019. The figure is influenced by the depreciation of the fleet of 4Service Group for Euro 3.8 million. With reference to the third quarter of 2020, the figure recorded a better performance than the previous year, even including the additional depreciation of the 4service fleet, recording Euro 1.8 million compared to Euro 0.6 million of the corresponding period of the past year. The non-proforma EBIT amounted to Euro 0.2 million.
The Net Financial Expenses of the Tesmec Group were Euro 6.6 million as at 30 September 2020, compared to Euro 2.6 million as at 30 September 2019. This change, for an amount of Euro 4.0 million, is mainly due to the different exchange rate trends in the two periods. Regarding exchange rate losses, it should be noted that Euro 2.4 million are related to period-end foreign exchange accruals.
The consolidated proforma Net Result is negative for Euro 4.5 million as at 30 September 2020, compared to a profit of Euro 0.7 million as at 30 September 2019. The non-proforma Net Result amounted to negative Euro 4.8 million.
The Net Financial Indebtedness was Euro 137.8 million, compared to Euro 143.5 million as at 30 June 2020 and to Euro 130.9 million proforma as at 31 December 2019. During the third quarter, the Group focused on revenues with higher margins and consequent cash generation which partially offset the negative change of the first half, due to the contingent pandemic situation and the increase in net working capital to support growth. The Group, therefore, confirms the improvement trend and the closing targets. The net financial indebtedness includes approximately Euro 23.1 million of financial liabilities from rights of use (IFRS 16), Euro 4.8 million of which from the 4Service Group acquired in April and Euro 10.5 million of debt vs shareholders.
The Total Order Backlog of the Tesmec Group as at 30 September 2020 was around Euro 238.0 million - Euro 92.0 million of which referring to the Trencher segment, Euro 69.0 million of which to the Railway segment, not including the provisional award of the RFI tender of around Euro 50 million, and Euro 77.0 million of which to the Energy segment – compared to Euro 194.2 million as at 31 June 2020 and to Euro 198.0 million as at 30 September 2019. The order backlog shows a significant improvement because the Group operates in sectors having a positive trend in the medium term. And indeed:
Starting from January 2020, the national and international scenario has been characterized by the spread of the COVID-19 virus (so-called Coronavirus) and the consequent restrictive measures for its containment. As regards Italy, via specific Decrees of the Presidency of the Council of Ministers (DPCM), a state of emergency was declared, currently in force until 31 January 2021. The Group took prompt actions to monitor and manage the situation with great attention, applying all the health and safety protocols in full compliance with
the provisions of the Ministry of Health. These circumstances, extraordinary in nature and extent, had direct and indirect impact on operating activities. Since the early days of the health emergency, the Group has been committed to fight it trying to ensure the business continuity of its offices and plants but at the same time ensuring the safety of its staff, customers and suppliers. The main actions adopted concerned the incentive to smart working, the business travels restriction, the increase of spaces in the workplace and measures to avoid occasions of gatherings of large groups. Frequent cleaning and sanitization of the premises have been guaranteed and Group employees and collaborators have been periodically updated, through internal communications, on the protocols to be adopted which, with the evolution of the epidemic, have become increasingly tighten. These measures have always been adopted in full compliance with government provisions and, in compliance with the Authority's requirements, the Group stopped its operations in the factories of Grassobbio, Endine, Sirone, Fidenza and Padua from March 23 to May 4, and in plants in Patrica and Monopoli from 23 March to 12 April. Operations in Durtal (France) were suspended from March 17 to April 20, in compliance with the provisions of the French government, while the Alvarado (USA) plant had no interruptions. In Australia and New Zealand, where the Group does not have production plants but where it operates in several jobsites, the activities were stopped from March 19 to May 15 and from March 25 to April 27 respectively. The progressive slowdown in the spread of infections has made it possible to restart, after the adoption of a prevention and safety protocol which has been agreed with the doctors and union representatives. In compliance with this protocol, the Group made an extended sanitation of its premises, bought the necessary individual protection devices, such as masks, gloves, screens and protective barriers and changed some of its internal procedures, such as the methods of access to facilities, where it is requested the measurement of body temperature before entry, and the organization of areas and work shifts to better guarantee the social distancing measures. Implementation of the so-called smart working continues to be encouraged, and investments have been integrated to allow remote activities to be carried out. In this difficult context, the Group has also adopted some initiatives to protect the welfare of employees and support its local community. The Group's production activities are carried out in some of the provinces of Italy which have suffered the most dramatic consequences of the current pandemic. To this end, some solidarity actions have been taken such as: a specific insurance coverage in case of hospitalization for COVID-19, the creation of the "Solidarity Bank" and the "Tesmec Family Solidarity Fund" to collect the contributions and the hours of leave voluntarily donated by employees to their colleagues in difficult situations due to COVID-19, the introduction of the figure of the "corporate butler", a service to take on some personal tasks of the employees in this difficult period, and a fundraiser: " Abitare la cura - Coronavirus: una mano per alleggerire gli ospedali" aimed to finance the hospitals in the province of Bergamo.
The COVID-19 pandemic impacted the performance of the first half of 2020. The various containment measures caused delays in the supply chain, the production and consequently the sales of the period, especially in March. These critical issues continued also in the month of April, during which the interruption of the operating activity continued, and which led to a slowdown in the commercial activity, which had already restarted in the first days of May. The Group reached full operation during the month of June and the first results from the restarting of the activities were confirmed with the growth of turnover and improvement in margins in the second quarter compared to the first quarter. Based on what is known to date, the Group believes that the impacts of this situation will not have consequences in the medium term. In order to meet the short-term liquidity needs from the slowdown in production and commercial activities, on 13 March 2020 a loan agreement has been signed with the majority shareholder, to be disbursed according to the needs of the Group in the next three years for a maximum amount of Euro 7 million, of
which Euro 4.2 million was used as at 30 September 2020. Furthermore, the Italian companies of the Group were able to benefit from some ABI moratoriums on the maturities of their financial liabilities and from new loans, while the Marais company was able to benefit from a new guaranteed credit line. From May the Group made full use of the measures introduced by Legislative Decree n. 23 of 8 April 2020 (the so-called "Liquidity Decree") to facilitate access to credit for businesses, with the opening of credit lines of around Euro 50 million, in addition to those collected by the subsidiary Groupe Marais in France for Euro 7.7 million.
The COVID-19 pandemic is considered a "trigger event", in intensity and unpredictability, it is an external factor of potential impairment and therefore the Directors have deemed appropriate to make impairment tests as at 30 June 2020, with the aim of assessing the impact of the crisis on the value of its net assets. The impairment tests did not reveal any problems of recoverability of the values recorded in the financial statements.
In light of the new Prime Ministerial Decrees proposed in Italy in October and of the restrictive measures introduced in the countries in which Tesmec operates, the Group confirms the short-term forecasts and assumes that the future developments of the Covid-19 pandemic will not impact the macro economic scenario in such a way as to modify the medium-long term strategic assumptions of the business plan. A possible tightening of the measures, like those introduced in the first part of the year, could impact on shortterm results but not on medium-long term choices.
The short-term targets and the Business Plan are based on the assumption that the pandemic situation does not involve the adoption of new restrictive measures similar to those adopted in the first part of the year and a significant worsening of the international macroeconomic scenario. Conversely, the possible adoption of similar measures could have impacts in the short term, but not in the long term given the strategic sectors in which the Group operates.
The extraordinary and unpredictable spread of the COVID-19 pandemic has had socio-economic consequences both nationally and internationally, negatively impacting the short-term performance. The recovery phase, which began at the end of the first half, allowed the Group to achieve a performance in the third quarter in line in terms of revenues and even better in terms of margins and cash generation compared to the same quarter of 2019. These results allow the Group to confirm the closing targets, which forecast revenues of around Euro 170 million, EBITDA of Euro 22-24 million and a reduction of the net financial indebtedness in line with the 2019 proforma figure. Cash generation for the period is linked to the containment of investments, to the reduction in net working capital and to the expected profitability of the second half, as per the trend of the third quarter.
Also in light of the new Prime Ministerial Decrees proposed in Italy in October and of the restrictive measures introduced in the countries in which Tesmec operates, the Group confirms the short-term forecasts and assumes that the future developments of the Covid-19 pandemic will not impact the macro economic scenario in such a way as to modify the medium-long term strategic assumptions of the business plan. A possible tightening of the measures, like those introduced in the first part of the year, could impact on shortterm results but not on medium-long term choices. The Group's operating sectors, in fact, will benefit from
new investments and development policies aimed at strengthening the key infrastructures of the main countries. The Group's business is focused on strategic sectors which are characterized by extreme vivacity and have significant development prospects. In fact, huge investments are planned in the trencher sector to strengthen telecommunications networks with the consequent increase in excavation and connection projects. A strong development in the mining sector is also expected. The railway sector is benefiting from a significant increase in investments to reduce congestion in the movement of road vehicles and increase sustainable mobility together with important investments in the maintenance of the lines in order to guarantee the safety of rail transport. In the Energy sector, the transition to renewable energy sources, as well as the growing importance of the efficiency of electricity grids, will drive to investments to support these trends.
On 3 September 2020 the Board of Directors approved the 2020-2023 business plan guidelines and the amount of the share capital increase with rights issue of Euro 35 million expected by the end of 2020.
On 20 October 2020, with reference to the capital increase in option equal to a maximum of Euro 35 million, the majority shareholder TTC S.r.l., owner, directly and indirectly, of 46.067% of the share capital of Tesmec, extended the irrevocable commitment to subscribe not exercised option rights up to Euro 5 million. TTC has therefore made, for itself and for the companies of the group it heads, a formal and irrevocable commitment to participate in the Capital Increase up to Euro 21,865,663, of which Euro 16,865,663 corresponding to its share.
At the time of this press release, the Company holds 4,711,879 treasury shares, equal to 4.40% of the Share Capital. The amount is unchanged compared to 31 December 2019.
****
At 15:00 PM (CET) – 14:00 PM (BST) of today, Friday 30 October 2020, Ambrogio Caccia Dominioni, Chairman and CEO of Tesmec S.p.A., and the Top Management of the Company will present the consolidated results for the first nine months of 2020 to the financial community during a conference call.
To participate, you are kindly requested to call this number:
| From Italy: | +39 02 805 88 11 |
|---|---|
| From UK: | + 44 121 281 8003 |
| From Germany: | +49 69 255 11 4451 |
| From France: | +33 170918703 |
| From Switzerland: | +41 225954727 |
| From USA: | +1 718 7058794 |
***
The manager responsible for the preparation of the corporate accounting documents, Marco Paredi, declares, pursuant to article 154-bis, paragraph 2, of Legislative Decree No. 58/1998 ("Consolidated Law on Finance") that the information contained in this press release corresponds to the document results, books and accounting records. Note that in this press release, in addition to financial indicators required by IFRS, there are also some alternative performance indicators (e.g. EBITDA) in order to allow a better understanding of the economic and financial management. These indicators are calculated according to the usual market practice.
The Interim Consolidated Financial Report as at 30 September 2020 will be available to the public at the administrative office, in Grassobbio (Bergamo) Italy, Via Zanica n. 17/O, through the system eMarket-Storage, at , through publication on the company website www.tesmec.com, according to law.
***
Tesmec S.p.A. Marco Paredi Investor Relations Manager Tel: +39 035 4232840 – Fax: +39 035 3844606 E-mail: [email protected]
Image Building - Media Relations Alfredo Mele, Carlo Musa Tel: +39 02 89011300 E-mail: [email protected]
This press release is also available on www.tesmec.com in the "Investors" section:
http://investor.tesmec.com/Investors/Notices.aspx?lang=it-IT
Tesmec Group is active in the design, production and marketing of systems and integrated solutions for the construction, maintenance and diagnostics of infrastructures (overhead, underground and railway networks) for the transport of energy, data and materials (oil and derivatives, gas and water), as well as technologies for quarries and surface mining. The Group operates in the following sectors: - Energy. Tesmec Group designs, manufactures and markets machines and integrated systems for the construction and maintenance of overhead and underground power lines, fibre optic networks (Stringing segment), as well as advanced equipment and systems for the automation, efficiency, management and monitoring of high, medium and low voltage electrical networks and substations (Energy Automation Segment); - Trencher. Tesmec Group carries out the design, production, sale and rental of trencher machines functional to four types of activities (excavation and mines, excavations for the installation of pipelines, for the construction of telecommunication and optical fibre infrastructures, excavations for the construction of underground power networks), as well as the provision of specialized excavation services. The trencher machines are rented by the Group both with the operator (hot rental or wet rental) and without the operator (cold rental or dry rental); - Railway. The Group designs, manufactures and markets machines and integrated systems for the installation and maintenance of the railway catenary, devices for the diagnostics of the railway catenary and track, as well as customized machines for special operations on the line.
Born in Italy in 1951 and led by the Chairman and CEO Ambrogio Caccia Dominioni, the Group counts on more than 900 employees and has its production sites in Grassobbio (Bergamo), Endine Gaiano (Bergamo), Sirone (Lecco) and Monopoli (Bari) in Italy, Alvarado (Texas) in the USA and Durtal in France. It relies on three research and development units in Fidenza (Parma), Padua and Patrica (Frosinone). Listed on the STAR segment of the MTA Market of the Italian Stock Exchange, the Group boasts a global commercial presence through foreign subsidiaries and sales offices in the USA, in South Africa, West Africa, Australia, New Zealand, Russia, Qatar and China.
In its development strategy, the Group intends to consolidate its position as a solution provider in the three abovementioned business areas, by exploiting the trends of energy transition, digitalization and sustainability.
Below are the reclassified statements of balance sheet, income statement, statement of cash flows and the prospectus of sources and uses of the Tesmec Group as at 30 September 2020
| As at 30 september | |||
|---|---|---|---|
| (€ in thousands) | 2020 | 2019 | |
| Revenues | 116,832 | 144,208 | |
| Total operating costs | (116,665) | (140,304) | |
| Operating Income | 167 | 3,904 | |
| Financial (income) / expenses | (3,849) | (3,811) | |
| Foreign exchange gains/losses | (2,777) | 1,256 | |
| Share of profit / (loss) of associates and joint ventures Income before tax Net income for the period |
18 (6,441) (4,793) |
5 1,354 724 |
|
| EBITDA | 15,685 | 17,410 | |
| EBITDA (% on revenues) | 13.4% | 12.1% | |
| EBITDA proforma | 17,571 | ||
| EBITDA pro forma (% on revenues) | 14.8% |
| (€ in thousands) | 30 September 2020 | 31 December 2019 |
|---|---|---|
| Non-current assets | 118,632 | 102,101 |
| Current assets | 229,669 | 194,450 |
| Total assets | 348,331 | 296,551 |
| Non-current liabilities | 116,968 | 75,085 |
| Current liabilities | 182,776 | 175,314 |
| Total liabilities | 299,744 | 250,399 |
| Equity | 48,587 | 46,152 |
| Total equity and liabilities | 348,331 | 296,551 |
| As at 30 September | ||
|---|---|---|
| (€ in thousands) | 2020 | 2019 |
| Net cash provided/(used) by operating activities (A) |
1,086 | (5,742) |
| Net cash provided/(used) by investing activities (B) |
(32,639) | (14,744) |
| Net cash provided/(used) by financing activities (C) |
62,916 | (2,542) |
| Increase / (decrease) in cash and cash equivalents (D=A+B+C) |
31,363 | (23,028) |
| Cash and cash equivalents at the beginning of the period (F) | 17,935 | 42,793 |
| Net effect of conversion of foreign currency on cash and cash equivalents |
||
| (E) | (412) | 297 |
| Total cash and cash equivalents at end of the period (G=D+E+F) |
48,886 | 20,062 |
| (€ in thousands) | As at 30 September 2020 | As at 31 December 2019 |
|---|---|---|
| Net working capital 3 | 79,479 | 73,024 |
| Non-current assets | 100,035 | 86,947 |
| Other Non-current assets and liabilities Net invested capital 4 |
6,885 186,399 |
4,219 164,190 |
| Net financial indebtedness 5 | 137,812 | 118,038 |
| Equity | 48,587 | 46,152 |
| Total equity and net financial indebtedness |
186,399 | 164,190 |
3 The net working capital is calculated as current assets net of current liabilities excluding financial assets and financial liabilities. Net working capital is not recognized as a measure of performance by the IFRS. The valuation criteria applied by the Company may not necessarily be the same as those adopted by other groups and therefore the balance obtained by the Company may not necessarily be comparable therewith.
4 The net invested capital is calculated as net working capital plus fixed assets and other non-current assets less non-current liabilities. The net invested capital is not recognized as a measure of performance under IFRS. The valuation criteria applied by the Company may not necessarily be the same as those adopted by other groups and therefore the balance obtained by the Company may not necessarily be comparable therewith.
5 The net financial indebtedness is calculated as the sum of cash and cash equivalents, current financial assets including available–for–sale securities, non-current financial liabilities, fair value of hedging instruments and other non-current financial assets.
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.