Working capital

Working capital increased by € 259.0 million, from € 331.3 million to € 590.3 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 summarized below:

  • inventories totalled € 261.0 million, down € 1.8 million over the previous year due to the combined effect of increased procurement activity for the progress of foreign contracts, specifically concerning hydroelectric projects in Ethiopia, partially reduced by the effects produced by the reclassification of Todini's divisions;
  • current ongoing activities increase for a total of € 355.6 million, passing from € 1,252.8 million to € 1,608.4 million. This change - which regarded Italy for € 50.2 million and abroad for € 305.4 million - is consequent to the effects of production development, with particular regard to the contract orders concerning ongoing projects, and in particular to projects in Qatar, Ethiopia and Denmark. With regard to Italy: the Milan-Genoa High Speed - High Capacity railway line;
  • Advances on contract work in progress and “negative” contract work in progress (i.e.: invoiced advances greater than the cumulative value of the projects constructed) totalled € 1.856.5 million with an increase equal to € 130.7 million. This change was mainly due to the effects of the following factors:
    • the net increase of contract advances for € 164.3 million, mainly due to the acquisitions of the period partially offset by the absorption of the payments reported in the preceding years through the development of production activities;
    • the decrease of the "negative current works for a total of approximately € 85 million, with particular reference to projects in the USA, in Qatar and Nigeria.
  • The current receivables show an increase for a total of € 85.3 million. In addition to the ordinary effects depending on the trend of the industrial activities during the period and the ordinary relations with customers and suppliers related to those activities, this change reflects the adjustment to the values expressed in Venezuelan currency to the official exchange rate (“SIMADI”) adopted by the Group starting from March 2015 and depreciated compared to the exchange rate used before (. “SICAD 2). As a result of this adoption the effective value of the receivables (net of payables) denominated in Venezuelan currency decreased by € 7 million compared to December 31, 2014.
  • Current payables show an increase for a total of € 36.2 million.
  • Other assets decreased € 24.3 million. The other current liabilities decreased € 11.1 million compared to December 31, 2014, and particularly refer to compensation and expropriation liabilities of the new orders.