Descripción del módulo CONCBA

The year-end net financial position is negative by 440.9 million euros, deteriorating compared to the previous year (-366.2 million euros) and is made up as indicated in the table below.

In detail, there was an increase in short-term bank debt (74.3 million euros) and a consolidation of the sources of medium/long-financing thanks to the extension of the repayment terms.

In relation to cash flows for the year:

• the negative flows are due to the reduction in advertising revenues and greater outlay for the renewal of white and blue collar employment contracts, as well as for the payment of funds and staff severance pay as a consequence of the incentivised resignation plan;

• the positive flows relate to the limitation of outlays for asset management and investments of Rai and Rai Way (in relation to the

completion of the DTT project), lower payments for direct taxes and the cashing of VAT credit. The average net financial position is negative by 365 million euros (-388 million euros in 2012), with a deterioration of 27 million euros, which is further limited than the final figure, thanks to the more favourable breakdown of the fee instalments collected during the year.

The analysis carried out on the basis of the balance sheet and income statement ratios highlighted that:

• the net invested capital coverage ratio, etermined by the ratio between net invested capital and own means, is 2.49 (2.26 at 31 December 2012);

• the financial debt hedging ratio, determined by the ratio between financial payables and own means, is 1.49 (1.26 at 31 December 2012);

• the current ratio, identified as the ratio between current assets (inventories, current assets, cash and cash equivalents and financial receivables) and current liabilities (current liabilities and

Working capital

(millions of euros) 12.31.2013 12.31.2012 Change Change %

Inventories 2.8 3.2 (0.4) -12.5

Trade receivables 490.8 523.5 (32.7) -6.2

Other assets 264.3 239.8 24.5 10.2

Trade payables (671.7) (685.5) 13.8 -2.0

Provisions for risks and charges (363.3) (503.2) 139.9 -27.8

Other liabilities (244.3) (212.8) (31.5) 14.8

Total (521.4) (635.0) 113.6 -17.9

Net financial position of the Group

(millions of euros) 12.31.2013 12.31.2012 Change Change %

Net amounts due from (to) banks and other lenders

- in the medium/long term (297.2) (296.5) (0.7) 0.2

- in the short term - net (140.1) (65.8) (74.3) 112.9

(437.3) (362.3) (75.0) 20.7

Other financial payables (3.6) (3.9) 0.3 -7.7

financial debts), is 0.72 (0.79 at 31 December 2012);

• the self coverage ratio of non-current assets, calculated as the ratio of shareholders’ equity to non-current assets, is 0.19 (0.18 at 31 December 2012).

The unsecured pool loan (246 million euros) and the loan of the European Investment Bank (50 million euros) envisage the compliance , at 31 December 2013, with the following parametric/ equity ratios:

• Net Financial Debt (adjusted) net of accounts receivable from the State for fees/Shareholders’ Equity ≤ 2.9

• Net Financial Debt (adjusted) net of accounts receivable from the State for fees /Gross Operating Margin ≤ 1.2

At 31 December, these ratios were fully

respected, settling at 1.60 and 0.73 respectively. The financial risks to which the Group is exposed are monitored using appropriate computerised and statistical instruments. A policy regulates financial management in accordance with best international practices, the aim being to preserve the corporate value by taking an adverse attitude towards risk, pursued via active monitoring of the exposure and the implementation of suitable hedging strategies, applied at central level by the Parent Company, also acting on behalf of the subsidiaries.

In particular:

• the exchange risk is related to the exposure in US dollars generated by the acquisition of sports events rights entered into by Rai in foreign currency and by film and television broadcasting rights by Rai Cinema. These commitments generated payments of approximately 146 million dollars during 2013. The operation begins on the date of subscription to the commercial commitment, often lasting several years, and aims to defend the counter value in euros of commitments estimated at the time of order or in the budget. Hedging strategies are implemented using financial derivative instruments – such as forward purchases, swaps and options – without ever taking on an attitude of financial speculation. The company Group establishes operating limits to be observed by the hedging activity.

• The interest rate risk is also regulated by the company policy, particularly for medium/ long-term exposure with specific operating limits. In relation to the medium-term loan with

the pool of lending banks (Unicredit, Intesa Sanpaolo, Banca Nazionale del Lavoro, UBI Banca, Banca di Credito Cooperativo di Roma), hedges were entered into during 2011 for 137 million euros, with the aim of transforming the cost of the loan, issued at floating rate and therefore subject to market volatility, to fixed rate.

• The credit risk son cash deployment is limited in that the company policy envisages the use, for limited periods of cash surpluses, of low- risk financial instruments with parties with high ratings. Only tied deposits or sight deposits were used during 2013.

• As regards the liquidity risk, in order to increase medium/long-term availability, the following actions were taken during the year:

– collection of a portion of the loan from the European Investment Bank for the development of DTT (expiring in June 2021) for a total of 50 million euros;

– change to the pool loan referred to above, with a six-month extension to the initial repayment plan (the new expiry being June 2016), as well as the availability of a new tranche of loan totalling 147,5 million euros (repayable in a single payment in June 2017).

The levels of the financial covenants have been raised for both loans.

Relative to the banking system, short-term and reversible credit lines were opened for a maximum amount of about 360 million euros. Stand-by loans are also in place for a total of 115 million euros, maturing in August 2014 and there is a factoring line held against accounts receivable in relation to advertising, for approximately 50 million euros. The existing loans allow coverage of overdrafts during the year, on condition that payment of the fees by the Ministry of the Economy and Finance takes place in observance of the contractual quarter-end deadlines.

Consolidated Financial statements