6) Purchase price allocation - Proforma management view

This column includes the main effects on the consolidated income statement following the recognition of the fair value of the acquired assets and assumed liabilities of Impregilo as per the “purchase price allocation” performed in accordance with IFRS 3 (the “PPA”), as if the purchase price allocation had been considered occurred on January 1, 2013.

It should be noted that management analyses Group results both gross and net of PPA effects. In particular, the analysis of results net of PPA adjustments allows neutralizing those income statement effects that do not absorb cash.

Thus, if one were to eliminate the PPA pro-forma adjustments (as reported in column 6) and the effects of the PPA on the consolidated historical income statement of Salini (which include the following adjustments[1]: total revenues of 29,391 thousand euros, operating income of 27,852 thousand euros, net profit of 52,064 thousand euros, as included in the Salini Consolidated Financial Statements), the major line items would result as follows:

  • Total revenues: 3,974,703 thousand euros
  • Operating income: 237,618 thousand euros
  • Net profit: 88,598 thousand euros 

Based on this management analysis excluding the PPA effects, EBITDA in 2013 for the Salini Impregilo combined group would have been 412,815 thousand euros, utilizing the current presentation format of Salini Impregilo. This figure incorporates 16,091 thousand euros of risk provisions against projects and value adjustments of credits receivable among operating costs.

[1]Please refer to the Salini S.p.A. Consolidated Financial Statements, Note 6. Business Combinations Purchase Price Allocation (pg. 151; pag 150 Italian Version). The Reclassified Income Statement table in this note show the impacts on profit or loss and equity of the changes in value resulting from the completion of the purchase price allocation.