Financing income (costs) and gains (losses) on investments

Net financing costs totaled €142.0 million (costs of €58.0 million in the previous year) while net gains on investments amounted to €9.0 million (gains of €195.1 million in 2013).

The main cause of the change in the net financing costs, in respect of the corresponding value recognized for 2013, apart from the different consolidation period of the former Impregilo Group, is the non-recurring charge of about €97 million resulting from the adoption by the Group of the new official exchange rate called SICAD 2 to translate its net assets denominated in the Venezuelan currency (called Bolivar Fuerte or VEF), effective as of June 30, 2014. The total €97 million impact comprises €55 million calculated upon adoption of the new currency and the remaining €42 million deriving from fluctuations in the amounts and the exchange rate during the second half of 2014. This situation was necessary in light of the continuing financial/currency crisis being experienced in the country, for the purpose of achieving a more reliable estimate of the value that these net financial assets will be realized and also in consideration of the regulatory characteristics of the local currency market, which puts significant restrictions on the movement of Venezuelan currency.

The net gains on investments in 2013 included the badwill recognized upon acquisition of Impregilo S.p.A., equal to €293.7 million.