At 30 June 2016, the Group has net financial indebtedness from continuing operations of €836.0 million (indebtedness of €26.8 million), while its indebtedness from discontinued operations is €18.1 million (indebtedness of €18.9 million).
The variation in the Group’s net financial indebtedness is mainly a result of:
- the financing taken out to acquire Lane, which entailed an outlay of €429 million, inclusive of cash and cash equivalents acquired (€87 million) and to acquire some assets of the US companies Asphalt Roads and Material Company Inc, (€33.9 million);
- investments in property, plant and equipment for contracts (€137.3 million), mainly for COCIV (Italy, high speed/capacity Milan-Genoa railway section), Ruta del Sol (Colombia) and the Riyadh Metro (Saudi Arabia);
- the use of cash flows generated by operations at the main work sites (Denmark, Qatar, Australia and the US), for the remainder.
Gross indebtedness has increased by €621.4 million from 31 December 2015 to €2,441.6 million at 30 June 2016.
The debt/equity ratio (based on the net financial indebtedness from continuing operations), at the reporting date, is 0.67 at group level.
The net financial indebtedness from discontinued operations relates to HCE’s business units.
Salini Impregilo has given guarantees of €339.6 million in favour of unconsolidated group companies securing bank loans.
The Group’s net financial indebtedness at 30 June 2016 is summarised in the following table.
Table 3 - Net financial indebtedness of Salini Impregilo Group
| (€’000) | Note (*) | 30 June 2016 | 31 December 2015 (§) | Variation |
|---|---|---|---|---|
| Non-current financial assets | 9 | 69,988 | 67,832 | 2,156 |
| Current financial assets | 14 | 363,417 | 312,104 | 51,313 |
| Cash and cash equivalents | 17 | 1,176,680 | 1,410,775 | (234,095) |
| Total cash and cash equivalents and other financial assets | 1,610,085 | 1,790,711 | (180,626) | |
| Bank and other loans and borrowings | 20 | (843,318) | (745,554) | (97,764) |
| Bonds | 21 | (692,296) | (396,211) | (296,085) |
| Finance lease liabilities | 22 | (102,226) | (79,789) | (22,437) |
| Total non-current indebtedness | (1,637,840) | (1,221,554) | (416,286) | |
| Current portion of bank loans and borrowings and current account facilities | 20 | (733,418) | (538,802) | (194,616) |
| Current portion of bonds | 21 | (16,084) | (10,203) | (5,881) |
| Current portion of finance lease liabilities | 22 | (54,218) | (49,617) | (4,601) |
| Total current indebtedness | (803,720) | (598,622) | (205,098) | |
| Derivative liabilities | 23 | (8,104) | (14,798) | 6,694 |
| Net financial position with unconsolidated SPEs (**) | 3,623 | 17,512 | (13,889) | |
| Total other financial assets (liabilities) | (4,481) | 2,714 | (7,195) | |
| Net financial indebtedness - continuing operations | (835,956) | (26,751) | (809,205) | |
| Net financial indebtedness - discontinued operations | (18,082) | (18,939) | 857 | |
| Net financial indebtedness including discontinued operations | (854,038) | (45,690) | (808,348) |
(*) The note numbers refer to the notes to the condensed interim consolidated financial statements where the items are analysed in detail.
(**) This item shows the Group’s net amounts due from/to unconsolidated consortia and/or consortium companies operating under a cost recharging system. The balance reflects the Group’s share of cash and cash equivalents or debt of the SPEs. The balances are shown under trade receivables and payables in the condensed interim consolidated financial statements. (§)The figures in this column do not include Lane acquired on 4 January 2016.