The group’s financial position

Reclassified consolidated statement of financial position

(Values in €/000) Note (*) 31 December 2013 31 December 2012 (§) Total variation
Non-current assets 1235  345,207  408,275  (63,068) 
Goodwill 4  11,875  30,390  (18,515) 
Non-current assets held for sale, net 17  5,683  307,588  (301,905) 
Provisions for risks 24  (94,161)  (98,285)  4,124 
Post-employment benefits and employee benefits 23  (18,145)  (20,234)  2,089 
Other non-current assets, net 7825  10,704  11,659  (955) 
Net tax liabilities 91428 139,225  137,576  1,649 
Inventories 10  83,500  95,376  (11,876) 
Contract work in progress 11  876,186  864,368  11,818 
Advances on contract work in progress 26  (842,120)  (844,440)  2,320 
Loans and receivables 12  1,168,118  1,062,865  105,253 
Payables 27  (748,830)  (818,599)  69,769 
Other current assets 15  259,618  288,955  (29,337) 
Other current liabilities 29  (219,297)  (233,069)  13,772 
Working capital   577,175  415,456  161,719 
Net invested capital   977,563  1,192,425  (214,862) 
Equity attributable to the owners of the parent   1,384,704  1,800,954  (416,250) 
Non-controlling interests   14,310  4,851  9,459 
Equity 18  1,399,014  1,805,805  (406,791) 
Net financial position 421,451 613,380 (191,929) 
Total financial resources 977,563 1,192,425  (214,862)

(*) The note numbers refer to the notes to the consolidated financial statements where the items are analysed in detail.
§) Figures restated following the application of IAS 19 revised and to reflect the different presentation of certain financial assets following acquisition by Salini S.p.A.. To align with the information disclosure approach followed by the parent, activities relating to subordinated loans granted to affiliated companies and receivables from the sale of investments - previously shown in "Other non-current assets, net" and "Other current assets" - have been reclassified in the Net Financial Position.

Net invested capital

This item decreased by € 214.9 million on the previous year end to € 977.6 million at 31 December 2013. The main changes are primarily attributable to the factors  mentioned below.

Non-current assets

Net non-current assets fell overall by € 63.1 million:

(Values in €/000) 31 december 2013 31 december 2012 Variation
Property, plant and equipment 199,915  298,777  (98,862) 
Intangible assets - Rights to infrastructure under concession 53,332  12,818  40,514 
Other intangible assets 45,965  34,043  11,922 
Equity investments 45,995  62,637  (16,642) 
Total non-current assets 345,207  408,275  (63,068) 

With reference to property, plant and equipment, investments for the period amounted to €

35.3 million, primarily relating to orders in the Construction segment (Panama, Colombia, USA and Italy). Disposals amounted to € 15.1 million and depreciation and amortisation €

89.0 million. The effects of exchange rate fluctuations have reduced the value of property, plant and equipment by € 14.1 million and a further reduction of € 15.8 million is attributable to the sale of the Chinese company Shanghai Pucheng Thermal Power Energy, previously recorded according to the so-called "proportionate consolidation" method.

Rights to infrastructure under concession show a total increase of € 40.5 million, largely attributable to the "Broni - Mortara" motorway concession project following acquisition of control of the concessionary company Sa.Bro.M. S.p.A. during the first half of 2013. Other variations for investments, disinvestments, amortisation and foreign exchange differences amounted to € 0.7 million.

The main item included in other intangible assets concerns the costs of obtaining orders relating entirely to the Milan - Genoa High-Speed & Capacity Railway Project. This asset increased by € 15.0 million in 2013 following the acquisition by third parties of a further stake in the project. The other variations in this item are largely related to amortisation.

The overall value of investments decreased by a total of € 16.6 million mainly due to the sale of holdings related to the "Milan East Outer Ring Road" concession project, which was explained in the first part of this Report and which involved an overall reduction of € 18.2 million. The acquisition of control of SABROM, previously recorded according to the equity method, also led to a further reduction in this item amounting to € 9.5 million. These effects were partially offset by the subscription of shares in the new Passante Dorico project consortium amounting to € 11.3 million. The other variations relate to the results of investments valued using the equity method and to exchange rate fluctuations.


Goodwill at 31 December 2013 is wholly attributable to the subsidiary Fisia Babcock. The change from the previous year, amounting to € 18.5 million, follows the sale of Shanghai Pucheng Thermal Power Energy.

Non-current assets held for sale, net

Non-current assets held for sale as at 31 December 2013 amount to € 5.7 million and have decreased compared with the previous year by € 301.9 million due to the sale of the remaining stake of 6.5% in the capital of the EcoRodovias group, which resulted in a reduction of approximately € 186.4 million, and to recovery of the compensation claimed by the Impregilo group relating to the former waste-derived fuel plants forming part of the Campania USW Projects which at the end of the previous year were recorded with a total value of € 121.2 million.

Provisions for risks

Provisions for risks amounted to € 94.2 million, a decrease of € 4.1 million compared with the previous year. The decrease is largely attributable to the occurrence in 2013 of a number of events, individually not particularly important, in respect of which the provisions had been made in previous years. These events, more fully described in the notes to the consolidated financial statements of the Group, did not incur significant additional costs compared with the estimates made when the Group set up the provisions.

Post-employment benefits and employee benefits

This item amounted to € 18.1 million, a decrease of € 2.1 million compared with  the previous year. This variation is attributable to ordinary operating dynamics, characterised by provisions totalling € 16.2 million, payments and transfers to funds of € 17.8 million, and other decreases, including the effects of currency fluctuations, amounting to € 0.5 million.

Other non-current assets, net

Other non-current assets, net of liabilities, amounted to € 10.7 million, down by € 1.0 million compared with 31 December 2012, and comprising the following items:

(Values in €/000) 31 December 2013 31 December 2012 Variation
Non-current intragroup loans and receivables 2,791  3,478  (687) 
Other non-current assets 9,018  10,782  (1,764) 
Other non-current liabilities (1,105)  (2,601)  1,496 
Total other non-current assets, net 10,704  11,659  (955) 

Net tax assetss

Net tax assets amounted to € 139.2 million, an overall increase of € 1.6 million. This item is broken down as follows:

(Values in €/000) 31 December 2013 31 December 2012 Variation
Deferred tax assets 102,650  105,484  (2,834) 
Deferred tax liabilities (47,809)  (46,507)  (1,302) 
Total net deferred assets (liabilities) 54,841  58,977  (4,136) 
Current tax assets 60,644  67,253  (6,609) 
Current tax liabilities (57,477)  (52,630)  (4,847) 
Total net current tax assets (liabilities) 3,167  14,623  (11,456) 
Other current tax assets 96,538  80,579  15,959 
Other current tax liabilities (15,321)  (16,603)  1,282 
Total other current tax assets (liabilities) 81,217  63,976  17,241 
Total tax assets (liabilities) 139,225  137,576  1,649 

Net deferred tax assets decreased by € 4.1 million as a result of deferred tax costs of € 4.3 million and reversal to the income statement of pre-paid tax in prior years of € 13.6 million, net of income for pre-paid tax for the period of € 8.1 million, and transfer to the income statement of deferred tax recorded in prior years amounting to € 0.9 million. The effect of exchange rate fluctuations and other variations have resulted in an increase of € 4.8 million.

Current net income tax assets (liabilities) increased by € 11.5 million, mainly due to the valuation of income tax liabilities on income arising out of the ordinary revenue dynamics of the period.

Other net tax assets increased by € 17.2 million mainly due to the change in VAT receivables and other Italian indirect taxes.

Working capital

Working capital increased by € 161.7 million, from € 415.5 million to € 577.2 million. The main changes in working capital related to developments in the group’s operating activities and the greater production on certain domestic and international contracts during the year. They are summarised below:

  • Inventories amounted to € 83.5 million, down by € 11.9 million compared with the prior year as a result of their use in the construction activities of certain foreign contracts including in particular the Angostura and river  Sogamoso hydroelectric projects and lots 2 and 3 of the Abu Dhabi hydraulic tunnel.
  • work in progress increased overall by € 11.8 million, from € 864.4 million to € 876.2 million. This variation reflects the effects of increased production in the Construction segment, resulting in an increase in work in progress of € 81.6 million; this was offset by a further reduction in Plant assets of € 69.8 million due largely to the progress reached on major projects in the Desalination segment.
  • advances on work in progress amounted to € 842.1 million, a decrease of € 2.3 million. The net decrease stems from the combined effect of the net increase in contractual advance payments of € 22.0 million and the decrease of € 24.3 million in negative value work in progress (advances progressively higher than the value of production). The net increase in contractual advance payments reflects new deliveries relating to contracts in the Construction segment in Saudi Arabia and Qatar - totalling approximately € 102 million - net of absorptions arising from production achieved by active contracts, with particular reference to the projects in Colombia.
  • receivables increased by € 105.3 million, due to an increase in third party receivables of € 117.3 million and a reduction in non-consolidated Group company receivables of € 12.0 million. The increase in third party receivables is due in large part to the Construction segment which saw an overall increase of € 180.6 million (mainly Venezuela and Pedelombarda), while the Plant segment contributed with a reduction of € 81.7 million. The increase in receivables relating to Venezuela reflects temporary delays in payments by clients in this area resulting from conditions recently experienced in the country and described in the 'Risk Areas' section for the Construction segment elsewhere in this Report.
  • payables decreased by € 69.8 million, resulting in a net increase in working capital. The fall is due to a reduction in third party payables of € 55.4 million and in non- consolidated Group company payables of € 14.4 million. The reduction in third party payables is due largely to the Plant segment which saw a decrease of € 81.5 million, which was offset by an increase in the Construction segment of € 27.1 million (mainly the Panama Canal and Pedelombarda).
  • other current assets decreased by € 29.3 million, mainly due to the absorption of advances to suppliers and subcontractors in large overseas projects in the Construction segment. Other current liabilities decreased by € 13.8 million, mainly as a result of the adjustment of certain accounts payable relating to the purchase of business units in previous years.

Net financial position

As from the financial year covered in this Report, using an information disclosure approach consistent with that used within the Salini Group and reflected in the disclosure documentation published in 2013 concerning the merger, the value of the net financial position of the Impregilo Group also reflects subordinated loans granted to affiliated companies and receivables from the sale of investments previously classified in "Other non- current assets (liabilities)" and "Other current assets", totalling € 119.2 million. To allow a consistent comparison of the values stated at the end of 2013 with those for the previous year, the comparative figures amounting to € 46.6 million have been restated on a like-for- like basis.

As at 31 December 2013, the Impregilo group has a positive net financial position of € 421.5 million compared with a net financial position of € 613.4 million as at 31 December 2012, a net variation of € 191.9 million. At group level, the debt/equity ratio is -0.30 at year end, due to the fact that its financial position is positive.

The variation in the net financial position, in addition to that arising out of the ordinary operating dynamics of the Group, also reflects the effects of the following situations:

  • proceeds from the sale of the remaining 6.50% stake in the Brazilian group Ecorodovias Infrastructura e Logistica S.A., which was completed in January 2013 for a total of € 187.0 million;
  • recovery of the claims for damages and legal interest relating to former waste-derived fuel plants amounting to € 240.5 million, made following enforcement of the decision of the Court of Cassation, which had definitively established such right in favour of the Group.
  • payment in May of the dividends approved by the Shareholders' Meeting on 30 April 2013, totalling € 602.2 million;
  • early repayment of the variable rate debenture loan taken out by the Impregilo subsidiary International Infrastructures NV in November 2013 totalling € 114.7 million, including interest.

Impregilo  has  given  guarantees  of  €  86.8  million  in  favour  of  unconsolidated  group companies securing bank loans.

The group’s net financial position at 31 December 2013 is summarised in the following table.

(Values in €/000) Note (*) 31 December 2013 31 December 2012 Variation
Non-current financial assets 6  10,868  4,960  5,908 
Current financial assets 13  590  10,590  (10,000) 
Cash and cash equivalents 16  813,290  1,243,086  (429,796) 
Total cash and cash equivalents and other financial assets   824,748  1,258,636  (433,888) 
Non-current bank loans 19  (94,947)  (104,634)  9,687 
Bonds 20  (149,212)  (148,840)  (372) 
Finance lease payables 21  (13,319)  (40,028)  26,709 
Total non-current indebtedness   (257,478)  (293,502)  36,024 
Current portion of bank loans and current account facilities 19  (205,590)  (225,043)  19,453 
Current portion of bonds 20  (952)  (113,689)  112,737 
Current portion of finance lease payables 21  (24,804)  (22,785)  (2,019) 
Total current indebtedness   (231,346)  (361,517)  130,171 
Derivative assets 13  1,016  1,091  (75) 
Derivative liabilities 22  (4,350)  (5,265)  915 
Other non-current financial assets 6  48,123  50,707  (2,584) 
Other current financial assets 13  80,482  7,313  73,169 
Current portion of factoring payables 19  (19,579)  (10,168)  (9,411) 
Non-current portion of factoring payables 19  (20,165)  (33,915)  13,750 
Total other items in net financial indebtedness   85,527  9,763  75,764 
Net financial position (indebtedness) - continuing operations   421,451  613,380  (191,929) 
Net financial position (indebtedness) including discontinued operations 421,451  613,380  (191,929) 

(*) The note numbers refer to the notes to the consolidated financial statements where the items are analysed in detail.