TABLE 2. Financial position
(Euros/thousand) 12/31/2012 12/31/2011 CHANGE
A. - FIXED ASSETS
Intangible fixed assets * 1,849,556 1,899,128 (49,572)
Tangible fixed assets 179,152 192,542 (13,390)
Non-current financial assets 12,225 10,021 2,204
2,040,933 2,101,691 (60,758) B. - WORKING CAPITAL Inventory 10,297 18,324 (8,027) Trade receivables 161,598 182,057 (20,459) Other assets 92,163 68,865 23,298 Trade payables (129,006) (141,985) 12,979
Allowances for risks and charges (69,792) (83,746) 13,954
Other liabilities (119,660) (141,749) 22,089
(54,400) (98,234) 43,834 C. - INVESTED CAPITAL, minus short-term liabilities (A+B) 1,986,533 2,003,457 (16,924)
D. - EMPLOYEE SEVERANCE INDEMNITIES (ESI) 15,542 23,461 (7,919)
E. - INVESTED CAPITAL, minus short-term liabilities and ESI (C - D) 1,970,991 1,979,996 (9,005)
financed by:
F. - SHAREHOLDERS’ EQUITY
Paid-up share capital 62,225 62,225 0
Reserves and retained earnings (accumulated losses) 763,346 723,660 39,686
Income (loss) for the year 259,174 39,686 219,488
1,084,745 825,571 259,174
G. - MEDIUM/LONG-TERM NET BORROWING 786,611 1,295,111 (508,500)
H. - SHORT-TERM NET BORROWING (NET CASH AND CASH EQUIVALENTS)
Short-term borrowing 524,802 89,822 434,980
Cash and current receivables (425,167) (230,508) (194,659)
99,635 (140,686) 240,321 (G+H) 886,246 1,154,425 (268,179)
I. - TOTAL AS IN "E" (F+G+H) 1,970,991 1,979,996 (9,005)
* of which the value of concession 1,578,013 1,628,109 (50,096)
Fixed assets
The reduction of 60.8 million euros compared to December 31, 2011 is attributable to capital investment (down 63.0 million euros) in relation to amortization higher than the investments made in the year; this change was partly offset by the increase in non-current financial assets of 2.2 million euros attributable to the subscription of the capital of ADR Mobility and ADR Security.
Working capital
The increase of 43.8 million euros in working capital derives from:
increase in “other assets” of 23.3 million euros for tax credits deriving from the abovementioned allocation of the recovered IRES corresponding to the non deduction of IRAP on payroll costs (7.1 million euros), the payment of higher advances compared to the estimated tax burden for the year (3.2 million euros), higher deferred tax assets for 4.4 million euros and the posting of the receivables related to the dividends of subsidiary undertakings (5.9 million euros);
decrease of 13.0 million euros in trade payables as a result of the divestiture of the “direct sales” company branch and the decreased volume of investments, partly offset by higher trade payables to subsidiary undertakings and ADR Security in particular, which was contracted airport security activities;
decrease of 14.0 million euros in allowances for risks and charges mainly due to the combined effect of the uses of the period of 15.8 million euros, partly offset by provisions of 2.1 million euros, deriving from the updated assessment of risks/disputes pending;
reduction of 22.1 million euros in “other liabilities”, due to the combined effect of an overall reduction in payables for current taxes (down by approximately 18.2 million euros), surtaxes (down 3.2 million euros), payables to staff and social security agencies (down 5.6 million euros), following the divestiture of company branches, and the increase in the amount due for fire prevention services (up 8.3 million euros), following an estimate of the amount payable for the year.
These effects were partly offset by:
a decrease in inventory for 8.0 million euros due to the break-up of the "direct sales" company branch and the transfer of the "maintenance" company branch;
a reduction of 20.5 million euros in trade receivables mainly attributable to higher provisions for doubtful accounts.
Employee severance indemnities
The reduction in the employee severance indemnities of 7.9 million euros is substantially due to the contribution of the company branches “direct sales”, “car parks” and “security” and the transfer of the company branch regarding the maintenance of vehicles.
Net invested capital
The net invested capital, equal to 1,971.0 million euros at December 31, 2012, recorded a reduction of 9.0 million euros compared to the end of last year.
Shareholders’ equity
The shareholders’ equity increased by 259.2 million euros with respect to December 31, 2011 due to the net income of the year.
Net debt
The net debt amounts to 886.2 million euros at December 31, 2012, down by 268.2 million euros compared to the end of last year.
TABLE 3. Net debt
(Euros/thousand) 12/31/2012 12/31/2011 CHANGE
Securities - Bonds (2,758) (2,758) 0
Due to banks 89,350 97,850 (8,500)
Due to other financial institutions 700,019 1,200,019 (500,000)
A. - MEDIUM/LONG-TERM NET BORROWING 786,611 1,295,111 (508,500)
Due to banks 8,914 74,824 (65,910)
Due to other financial institutions 513,989 14,143 499,846
Due to subsidiary undertakings 1,899 855 1,044
Short-term borrowing 524,802 89,822 434,980
Amounts due from subsidiary undertakings 0 (994) 994
Amounts due from others (43,649) (56,112) 12,463
Cash on hand and in banks (381,518) (173,402) (208,116)
Cash and current receivables (425,167) (230,508) (194,659)
B- SHORT-TERM NET BORROWING (NET CASH AND CASH EQUIVALENTS) 99,635 (140,686) 240,321
NET DEBT (A+B) 886,246 1,154,425 (268,179)
Medium/long-term net borrowing
The medium/long-term borrowing decreased by 508.5 million euros due to the reclassification to short-term borrowing of:
Tranche A1, equal to 500.0 million euros, of the payable to Romulus Finance S.r.l. (“Romulus Finance”) maturing in February 2013;
portion of the Banca BIIS loan falling due in 2013 for 8.5 million euros.
Short-term net borrowing
Short-term borrowing rose by 240.3 million euros, reflecting the combined effect of:
reduction in amounts due to banks related to the repayment, upon the maturity date of February 20, 2012, of the residual amount of the Term Loan Facility (65.4 million euros); the reclassification of the 8.5 million euros portion of the Banca BIIS loan falling due in 2013 was offset by the payment of the portion of the same amount falling due in 2012;
increase in amounts due to other financial institutions by 499.8 million euros substantially due to the reclassification of tranche A1 above;
higher cash on hand and in banks and current receivables for 194.7 million euros mainly attributable to the collection from the sale of ADR Retail, partly offset by the loan repayment above.
ADR's statement of cash flows is reported below. For a description of the financial events, reference is made to what is illustrated for the ADR Group.
TABLE 4. Statement of cash flows
(Euros/thousand) 2012 2011
A.- NET CASH AND CASH EQUIVALENTS - opening balance 140,686 217,959
B.- CASH FLOW FROM (FOR) OPERATING ACTIVITIES
Net income (loss) for the year 259,174 39,686
Amortization and depreciation 118,413 115,743
Gains (losses) on disposal of fixed assets (216,742) (2)
Change in working capital (1) (50,398) 3,325
Net change in "employee severance indemnities" (1) (116) (3,776)
110,331 154,976
C.- CASH FLOW FROM (FOR) INVESTING ACTIVITIES
Investments in fixed assets:
intangible (51,681) (44,666)
tangible (9,271) (21,240)
financial (21) (8)
Proceeds from disposal, or redemption value of fixed assets (3) 219,293 272
Other changes (assignments and transfer of the vehicle maintenance company branch) (1) (472) 0
157,848 (65,642)
D.- CASH FLOW FROM (FOR) FINANCING ACTIVITIES
Portion of medium/long-term loans falling due in the short term (508,500) (74,022)
Repayments of loans 0 (92,765)
Other changes 0 180
(508,500) (166,607)
E.- PROFIT ALLOCATION 0 0
F.- CASH FLOW FOR THE YEAR (B+C+D+E) (240,321) (77,273) G.- NET CASH AND CASH EQUIVALENTS (A+F) - closing balance (99,635) 140,686
(1) the changes in working capital and ESI are reported net of the effect deriving from company branch contributions and the transfer of the vehicle maintenance branch; the effect of these transactions on cash is shown
in item Other changes under C.
(3) includes, in 2012, the sale price, net of transfer costs and gross of taxes (217.2 million euros) of the stake in ADR Retail Srl
(2) of which 11.6 million euros refer to transaction costs incurred on loans
TABLE 5. Analysis of net debt
(Euros/thousand) 2012 2011
A.- NET DEBT - opening balance (1,154,425) (1,243,939)
EBITDA 274,442 290,820
Change in operating working capital (1) (15,569) (23,580)
Change in employee severance indemnities (1) (116) (3,776)
Other income and expense 706 5,822
Extraordinary income and expense (4,156) 326
Current taxes paid (65,790) (44,558)
Change in other assets (liabilities) and provisions for risks (1) (12,774) 1,445
B.- OPERATING CASH-FLOW 176,743 226,499
Investments in intangible, tangible and non-current financial assets (60,973) (65,914)
Proceeds from disposal, or redemption value of fixed assets (2) 219,293 272
Other changes (assignments and transfer of the vehicle maintenance company branch) (1)
(472) 0
C.- AVAILABLE CASH-FLOW (CASH GENERATION) 334,591 160,857
Net financial income/expense (66,412) (71,523)
Other changes 0 180
D.- NET CASH-FLOW FOR THE YEAR 268,179 89,514
E.- NET DEBT (A+D) - closing balance (886,246) (1,154,425)
(1) the changes in operating working capital, ESI and other assets/liabilities are reported net of the effect deriving from company branch contributions and the transfer of the vehicle maintenance branch; the effect of these transactions on cash is shown in item Other changes under C.
(2) includes, in 2012, the sale price, net of transfer costs and gross of taxes (217.2 million euros) of the stake in ADR Retail Srl