Performance of the Parent Company Salini Impregilo S.p.A.

The revenue booked in 2014 totaled €2,341.9 million (€1,274.1 million). Revenues in Italy were €529.0 million (€645.4 million) and €1,812.9 million abroad (€628.7 million).

Other revenues mainly comprise revenues from support and coordination activities carried out by the Parent Company on behalf of its subsidiaries and charged to them, and contingent assets.

Net financing costs totaled €113.3 million (income of €26.8 million) while net gains on investments amounted to €28.8 million (losses of €13.2 million).

Net financing costs include:

• interests on the bond issue totaling €25.8 million. The nominal €400 million bond was issued on July 23, 2013 and matures in August 2018, incurring interest at a rate of 6.125%;
• interest on bank loans and current account overdrafts totaling €60.5 million. Bank loans include a Term Loan Facility with a 3-year expiry subscribed on December 10, 2013, taken out to refinance debt assumed for the public tender offer. The interest maturing in 2014 includes the portion of transaction costs relating to the loan described above, amounting to €16.9 million, recognized in profit or loss on the basis of the effective interest method;
• interest paid to Group companies totaling €15.7 million including in particular the €10.4 million in interest paid to the subsidiary Impregilo International Infrastructures NV;
• other financial expenses of €15.2 million, including interest on finance leases of €5.6 million and bank charges of €5.2 million.

Net exchange rate losses totaled €35.2 million. This reflects the charge of about €97 million resulting from the adoption by Salini Impregilo of the new official SICAD 2 exchange rate to translate its net assets denominated in the Venezuelan currency (called Bolivar Fuerte or VEF), effective as of June 30, 2014. The overall effect of €97 million comprises €55 million calculated upon adoption of the new exchange rate and the remaining €42 million linked to changes in balances 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, as part of a more reliable approach to estimating the realizable value of these net financial assets, also in consideration of the regulatory characteristics of the local currency market, which enforces significant limitations on movement of Venezuelan currency. Further details about this situation are provided in the notes to the accounts, which should be consulted for more information.

Net gains on investments in 2014 stood at €28.8 million (net losses of €13.2 million), mainly reflecting:

• the payment of dividends by Group companies totaling €53.2 million including in particular the €50 million paid by the Netherlands-based subsidiary Impregilo International Infrastructures NV;
• the overall net effect was negative and amounted to €24.4 million, resulting from adjustments to the carrying values of certain investments in subsidiaries determined under the impairment testing procedures. In this context, more fully described in the notes to the separate financial statements of Salini Impregilo S.p.A. presented elsewhere in this Report, impairment reversals (positive effect) of €12.2 million and impairment losses (negative effect) of €36.6 million are recorded.