Performance

Total revenue for 2013 is € 2,323.3 million (€ 2,281.0 million). Of this value, € 1,642.2 million was achieved abroad (€ 1,758.4 million) and mainly reflects the growth of the Construction segment (+5.5%).

The increase in revenues in the construction sector was driven primarily by the Italian contracts, which include the Pedelombarda Motorway, the Milan - Genoa High-Speed & Capacity Railway Project and works on the Milan East Outer Ring Road, for the period prior to the transfer of the associated activities to third parties, which was carried out in the latter part of the year under review.

The value of production in overseas construction projects has remained broadly stable compared with the previous year; this is attributable to the temporary slowdown shown by some projects in Venezuela that were affected by the particular socio-political conditions prevailing in the country during the year, which further deteriorated in the first half of 2014. However, the Group has been present in this region for many years and there have been similar temporary situations of instability in the past. Given the social importance of the works in progress in Venezuela, as well as the relationships at social and contractual level, it is reasonable to assume that the conditions currently being experienced are temporary and it may therefore be assumed that the occurrence of specific situations of a critical nature are attributable to mere chance.

The following table summarises the breakdown of revenues for the construction segment:

The decrease in Plant segment revenue is due to the substantial completion of the FISIA Italimpianti projects and the timescales of the operations of FISIA Babcock.

Overall, financial management showed a positive result of € 0.7 million (loss of € 30.7 million), while management of investments contributed a profit of € 2.5 million (€ 1.4 million).

Financial management mainly reflects the following situations:

• net financial expenses increased overall by € 16.0 million over 2012. This effect mainly reflects higher net default charges - reasonably assessable as not significant and non- recurring items - totalling € 35.0 million, including approximately € 15.2 million relating to the resolution in early 2013 of a number of disputes with client administrations regarding the return of advances received. Interest payable is, however, reduced overall by € 18.5 million compared with the previous year, mainly due to the reduction of gross financial debt, which fell from € 655.0 million to € 488.8 million, and to timing and currency changes for the debt. Other net financial charges decreased by € 0.5 million.
• Net exchange rate gains amount to € 50.8 million (€ 3.4 million in the previous year). It should be noted that again in 2013 there was a benefit from the positive effects resulting from asymmetries in the foreign exchange market in relation to certain currencies for which the official exchange rates are artificially fixed. To this effect, moreover, is added the benefit resulting from the release to the income statement of the reserve for exchange rate fluctuations relating to the company Shanghai Pucheng Thermal Power Energy, which was sold at the end of 2013 and previously recorded in a separate item of consolidated shareholders' equity.

Income taxes for 2013 amounted to € 53.7 million (€ 59.3 million) and correspond to an average rate of 33.3%. The tax liability for the previous year had been affected, in particular, by the fact that some consolidated Project Companies (SPVs) had experienced losses, including tax losses, amounting to approximately € 244 million. Although these losses can be legally carried forward, they were regarded as permanent differences consistent with the evaluations relating to projects carried out by the SPVs and in accordance with the respective predictions.