Tab. 5 - Reclassified statement of financial position of the Parent Company Salini Impregilo S.p.A.
| (Amounts in thousands of euros) | Note(*) | December 31, 2014 | December 31, 2013 (§) | Change |
|---|---|---|---|---|
| Property, plant and equipment, intangibles and non-current financial assets | 1-2-3 | 1,055,488 | 549,174 | 506,314 |
| Provisions for risks | 19 | (36,952) | (134,228) | 97,276 |
| Post-employment benefits and employee benefits | 18 | (11,322) | (11,690) | 368 |
| Tax assets (liabilities) | 5-10-22 | 18,629 | (13,086) | 31,715 |
| Inventories | 6 | 192,130 | 33,833 | 158,297 |
| Contract work in progress | 7 | 765,792 | 441,444 | 324,348 |
| Advances on contract work in progress | 20 | (803,169) | (198,484) | (604,685) |
| Receivables (**) | 8 | 986,438 | 795,502 | 190,936 |
| Payables | 21 | (863,255) | (476,228) | (387,027) |
| Other current assets | 11 | 318,956 | 116,219 | 202,737 |
| Other current liabilities | 23 | (137,152) | (63,619) | (73,533) |
| Working capital | 459,740 | 648,667 | (188,927) | |
| Net invested capital | 1,485,583 | 1,038,837 | 446,746 | |
| Shareholders’ equity | 13 | 942,987 | 1,193,825 | (250,838) |
| Net financial position | 542,596 | (154,988) | 697,584 | |
| Total financial resources | 1,485,583 | 1,038,837 | (948,422) |
(*) The note numbers refer to the notes to the separate financial statements of Salini Impregilo S.p.A. where the items are analyzed in detail.
(**) This item includes €65.9 million (€44.5 million at December 31, 2013) representing the portion of net receivables pertaining to consortia and/or consortium companies over which no entity has control and operating under a cost recharging system, which corresponds to the Group’s share of cash and cash equivalents or financial debt with SPVs.
(§) The statement of financial position data at December 31, 2013 were reclassified due to the adoption of the new standards IFRS 10 and IFRS 11.
Net invested capital
For the Parent Company, this item increases overall by €446.7 million compared with the previous year.
The main variations of the year contributing to the decrease are described below:
Property, plant and equipment, intangibles and non-current financial assets
Property, plant and equipment, intangibles and non-current financial assets increased overall by €506.3 million, including the amount deriving from the merger of Salini S.p.A. into Impregilo S.p.A., of €267.4 million. This item is broken down in the table below:
| amounts in thousands of euros | December 31, 2014 | December 31, 2013 | Change |
|---|---|---|---|
| Property, plant and equipment | 268,805 | 19,975 | 248,830 |
| Intangible assets | 84,058 | 44,948 | 39,110 |
| Investments in associates | 702,625 | 484,251 | 218,374 |
| Total property, plant and equipment, intangibles and non-current financial assets | 1,055,488 | 549,174 | 506,314 |
Property, plant and equipment increased by €248.8 million, including €224.6 million deriving from the merger. The other changes mainly related to depreciation of €77.0 million, investments of €108.9 million mainly referring to foreign contracts, disposals of €9.0 million, and other gains – including exchange rate gains – totaling €1.3 million.
Intangible fixed assets referred mainly to costs for obtaining contracts, which increased by €39.1 million. Within this item, €25.4 million relates to the acquisition of a portion of the works on the Riyadh metro system and €36.7 million relates to future profits from orders in the backlog of the former Impregilo S.p.A. recognized after the merger, in line with the consolidated financial statements. Depreciation for the period amounted to €23.0 million.
Equity investments increased by €218.4 million, of which €42.6 million pertaining to equity investments held by the former Salini as at December 31, 2013 and €112.4 million due to the greater value of the equity investments of former Impregilo recognized at the merger.
Provisions for risks
Provisions for risks amounted to €36.9 million and show a net decrease of €97.3 million in total, mainly due to the receivable that the parent company claims is due from the associate Grupo Unidos por el Canal SA (Panama) being shown net of the provisions for risks on equity investments recognized in line with the assessment of the loss to complete the contract; in 2013, the net receivable had a negative value and was recognized in the item provisions for risks on equity investments for €76.6 million, while in 2014, following the increase in the receivables for loans granted during the year, it was positive and classified in the item equity investments.
Post-employment benefits and employee benefits
This item amounted to €11.3 million, with little change compared with the previous year. The contribution deriving from the merger was €1.9 million. Ordinary operations saw provisions of €7.6 million, payments and financing of reserves of €10.2 million and other changes of €0.3 million.
Tax assets (liabilities)
At December 31, 2014, net tax assets were positive at €18.6 million, against a negative net balance of €13.1 million for the previous financial year. The breakdown and variations for this item are as follows:
| amounts in thousands of euros | December 31, 2014 | December 31, 2013 | Change |
|---|---|---|---|
| Prepaid tax assets | 57,527 | 36,434 | 21,093 |
| Deferred tax liabilities | (97,872) | (98,932) | 1,060 |
| Total net deferred assets (liabilities) | (40,345) | (62,498) | 22,153 |
| Current tax assets | 46,581 | 46,541 | 40 |
| Current tax liabilities | (27,292) | (45,750) | 18,458 |
| Total net current tax assets (liabilities) | 19,289 | 791 | 18,498 |
| Other tax receivables | 47,091 | 52,963 | (5,872) |
| Other tax payables | (7,406) | (4,342) | (3,064) |
| Total other current tax assets (liabilities) | 39,685 | 48,621 | (8,936) |
| Total tax assets (liabilities) | 18,629 | (13,086) | 31,715 |
A more detailed examination of the variations affecting these items is provided in the notes to the separate financial statements of Salini Impregilo S.p.A. for the year 2014 provided elsewhere in this Annual Report.
Working capital
Working capital at December 31, 2014 amounted to €459.7 million, a decrease of €188.9 million compared with the previous year. The main changes in working capital related to developments in the Company’s operating activities and the greater production on certain domestic and international contracts during the year. They are summarized below:
- inventories totaled €192.1 million, an increase of €158.3 million, of which €132.1 million as a result of the merger;
- Contract work in progress moved from €441.4 million to €765.8 million, an increase of €324.3 million, of which €251.4 as a result of the merger;
- advances on work in progress amounted to €803.2 million, an increase of €604.7 million, of which €557.6 as a result of the merger;
- receivables totaled €986.4 million, an increase of €190.9 million. The merger added €306.5 million in receivables, while the year in question saw a reduction of €115.6 million;
- payables increased by €387.0 million, of which €286.9 million deriving from the merger;
- other current assets increased by €202.8 million, including €75.9 million as a result of the merger. The changes during the year are due mainly to increases in advances to suppliers and prepayments, mainly as a result of new contracts begun during the year;
- other current liabilities increased by €73.5 million compared to last year, of which €26.7 million as a result of the merger.
Net financial position
The net financial position of the Parent Company at December 31, 2014 was negative at -€542.6 million, compared with the previous year’s figure which was positive and amounted to €154.9 million.
The following table shows Salini Impregilo S.p.A.’s net financial position at December 31, 2014 compared with the previous year-end.
Tab. 6 - Net financial position of the Parent Company Salini Impregilo S.p.A.
| (Amounts in thousands of euros) | Note(*) | December 31, 2014 | December 31, 2013 (§) | Change | ||
|---|---|---|---|---|---|---|
| Non-current financial assets | 4 | 39,083 | 29,810 | 9,273 | ||
| Current financial assets | 9 | 435,927 | 225,973 | 209,954 | ||
| Cash and cash equivalents | 12 | 380,867 | 310,442 | 70,425 | ||
| Total cash and cash equivalents and other financial assets | 855,877 | 566,255 | 289,652 | |||
| Bank loans and other facilities | 14 | (405,086) | (98,839) | (306,247) | ||
| Bond issues | 15 | (394,326) | - | (394,326) | ||
| Finance lease payables | 16 | (88,673) | (12) | (88,661) | ||
| Total non-current indebtedness | (888,085) | (98,851) | (789,234) | |||
| Bank account overdrafts and current portion of financing facilities | 14 | (529,102) | (357,925) | (171,177) | ||
| Current portion of bond issues | 15 | (10,203) | - | (10,203) | ||
| Current portion of finance lease payables | 16 | (36,742) | (22) | (36,720) | ||
| Total current indebtedness | (576,047) | (357,947) | (218,100) | |||
| Derivative assets | 9 | - | 1,016 | (1,016) | ||
| Derivative liabilities | 17 | (294) | - | (294) | ||
| Net financial assets held by SPVs and unconsolidated project companies (**) | 65,953 | 44,545 | 21,408 | |||
| Total other financial assets (liabilities) | 65,659 | 45,561 | 20,098 | |||
| Net financial position including non-current assets held for sale | (542,596) | 154,988 | (697,584) |
(*) The note numbers refer to the notes to the consolidated financial statements where the items are analyzed in detail.
(**) This item recognizes the portion of net payables and receivables pertaining to consortia and/or consortium companies over which no entity has control and operating under a cost recharging system, which corresponds to the Group’s share of cash and cash equivalents or financial debt with SPVs. In the financial statements, the balances are included in Trade Receivables.
(§)The data at December 31, 2013 were reclassified due to the adoption of the new standards IFRS 10 and IFRS 11.