Los temas centrales y fuentes del periodismo económico

Alba-Brà Hospital (Verduno, Italy), awarded in November 2005 through a “build and operate” contract signed with ASL CN2. The contract is being managed by the project engineering company MGR Verduno S.p.A. (Tecnimont Civil Construction 91%, Impresa Rosso 5% and Gesto 4%). The work is roughly 45% complete. The management of the project is concentrating on negotiating variants and resolving claims, for which the procedure to reach an amicable settlement has been started. During the third quarter, the amicable agreement was completed positively pursuant to art. 240 of Italian Legislative Decree no. 163/2006 and negotiations are underway with the client ASL/Region to allow full resumption of work for the conclusion of the Work, for a rebalancing of the Industrial Plan; a new works completion date has been agreed upon as 30 September 2015.

Avellino Hospital - Lot 2 (Avellino, Italy). In July 2004, the Contract was awarded for construction of the hospital, for which Tecnimont Civil Construction (Agent with 51%), in a temporary business grouping with Bonatti (the Principal with 49%) holds the concession granted by Azienda Ospedaliera “G. Moscati”. The hospital was officially opened on 18 December 2010 and the entire hospital facility became functional by the contractual deadline. The Public tender for the award of the contract relating to Facility Management Services was concluded in March 2013. In 2013, the concession-holder assisted the hospital in starting-up maintenance. On 31/12/2013, the concession came to an end. Final administrative activities are underway to close relations with the Client.

Report on Operations

7.Group Financial Performance

The table below shows the key items of the Statement of Financial Position for Maire Tecnimont Group at end 2013 and 2012:

Maire Tecnimont Summary Consolidated of the Statement of Financial Position

2013 2012

(Values in Euro thousands) Variation 12

2013 Non-Current Assets 516,878 555,146 (38,268) Inventories 140,134 162,017 (21,883) Construction contracts 293,896 242,013 51,883 Trade receivables 413,031 451,014 (37,984)

Cash and cash equivalents 194,187 433,347 (239,160)

Other current assets 282,787 333,570 (50,783)

Current Assets 1,324,035 1,621,960 (297,926)

Non-Current Assets Classified as Held for Sale 17,027 73,781 (56,754)

Total Assets 1,857,940 2,250,887 (392,948)

Shareholders’ Equity 33,507 (121,766) 155,273

Third-party equity 1,688 1,089 599

Borrowings net of current portion 362,766 0 362,766

Other non-current liabilities 87,462 91,721 (4,258)

Non-Current Liabilities 450,229 91,721 358,508

Short-term borrowings 152,707 687,890 (535,184)

Other financial liabilities 9,741 10,738 (997)

Advance payments from clients 114,681 279,916 (165,234)

Construction contract payables 289,849 310,006 (20,156)

Trade payables 660,791 771,636 (110,845)

Other current liabilities 139,229 159,128 (19,899)

Current Liabilities 1,366,998 2,219,314 (852,316)

Non-Current Liabilities Classified as Held for Sale 5,517 60,531 (55,014)

Total Shareholders’ Equity and Liabilities 1,857,940 2,250,887 (392,948)

“Non-current Assets” show a slight decrease on last year. This was mainly due to the recognition of an owned building under assets held for sale in accordance with IFRS 5, the sale of assets of the site related to the Copenhagen Metro contract as a result of the agreements stipulated for the sale of the same and the write-down of goodwill associated with the Infrastructure & Civil Engineering CGU for about Euro 10 million. This category covers tangible and intangible assets, trade receivables due beyond 12 months representing amounts held by clients as performance guarantees for the successful outcome of the projects underway and deferred tax assets.

“Current assets” are Euro 297,926,000 less than last year. The main decreases relate to the items inventories, trade receivables, liquid funds, other current assets and “Assets under disposal”; only construction contracts have increased on last year.

41 The inventories item refers mainly to advances paid to suppliers and subcontractors for materials in transit for the construction of plants, and work in progress. The decrease in advances to suppliers is a direct consequence of the trend in contracts and lower inventory materials in transit. A decrease is noted in advances in relation to the Gasco, Borouge 3 and Tobolsk orders, as well as in the amount of approximately 20.3 million, in the values relating to the Copenhagen metro order transferred in 2013.

The construction contracts item represents the total net positive values for each contract resulting from the difference between progressive production and billing on account and contractual risk provisions; the increase of Euro 51,883 thousand is mainly connected with progress made on orders and their contractual terms.

Trade receivables were Euro 413,031,000 down Euro 37,984,000 on 2012. This was mainly due to the combined effect of the completion of some projects during 2013 and the fact that payments received in the period exceeded amounts invoiced. These changes are also related to the contractual deadlines of the projects.

Assets and liabilities under disposal are Euro 11,510,000 and are attributable to the companies Biolevano - Biomass Plant in Olevano di Lomellina and Sofregaz SA, that are shown under IFRS 5 as “Assets and liabilities held for sale” and reclassified under these specific items. This latter following the signing of a binding offer completion of which is expected over the next few weeks. The period change of Euro 1,740 thousand is mainly a consequence of a different scope of sale relating to Sofregaz SA, net of the classification amongst non-current assets held for sale of an owner building.

In this context, the disposal is considered as “highly probable” on the basis of ongoing negotiations, although there is no certainty that it will be possible to proceed with the sale. The Group has ongoing negotiations for the sale of such additional assets, but the assets and liabilities related to them are not shown among those held for sale because, while considering the sale transaction highly probable, at 31 December 2013 all the conditions required according to IFRS 5 had not yet been complied with.

Cash and cash equivalents were Euro 194,187,000 down Euro 239,160,000 on 2012.

Most of the Group’s liquid assets are allocated in the Joint Ventures, which were Euro 84,663,000. In the case of the Joint Ventures, there are partnership agreements which provide that liquidity be maintained on projects until certain project completion milestones are achieved; at year end, the Joint Ventures showed an excess of liquidity with respect to their current needs. JV cash during 2013 recorded a significant decrease mainly in the JV Gasco project and Borouge 3 project, following their natural progress, in addition to significant payments made during the period following the distribution of dividends by JV Gasco.

Cash flows from operating activities showed absorption of Euro 192,468,000, Euro 60,841 worse than the equivalent indicator in 2012. Despite the positive result of the year, these flows were affected negatively by changes in working capital. In fact, the changes in receivables and trade payables, construction contracts receivable and payable, inventory advances showed a significant absorption of cash primarily related to payments made by the Joint Venture, as well as the outcome of any agreement for the sale of the project company “Mabe” in the period. Cash flow from investment absorbed Euro 1,382 thousand mainly due to the new technologies and intellectual property rights (patents and licenses) developed and filed during the year by Stamicarbon B.V. and the Maire Tecnimont Innovation Centre (MTIC), the implementation of software and the purchase of minor assets, net of the disposals of investments and the collection of dividends from affiliated companies.

Financial management also absorbed cash of Euro 44,195 thousand mainly due to interest expense of the period and the repayment of advances on invoices related to the working capital management of specific contracts and to the repayment of portions of loans at the closing of the reorganization, net of the proceeds of the capital increase.

Report on Operations

The table below shows the main cash flows:

Statement of Cash Flows 31 December

2013

31 December 2012

(Values in Euro thousands)

Cash and cash equivalent in the beginning of the year (A) 433,347 550,104

Cash flow from operations (B) (192,468) (131,627)

Cash flow from investments (C) (1,382) (9,384)

Cash flow from financing (D) (44,195) 25,951

Increase/(Decrease) of cash and cash equivalents (B+C+D) (238,045) (115,059)

Cash and cash equivalents at the end of the year (A+B+C+D) 195,302 435,045

of which: Cash and cash equivalents included in Assets held for sale and Discontinued 1,115 1,698

Cash and cash equivalents shown in the Financial Statements at year end 194,187 433,347

The net financial position is shown in the following table: