Economic and operating performance

Key consolidated income figures (€/000)20132012
Total Revenues 3,425,661 1,214,880
EBITDA 316,497 128,781
EBIT 147,652 64,816
EBT 289,075 349,181
Net Profit 157,701 332,918
Net profit/Total Revenues 4.6% 27.4%


Total revenues for 2013 amounted to €3,425.7 million, consolidating - as from 1 April 2013 - the turnover of the subsidiary Impregilo, whose share of the total value of production was equal to 52.8 %.

Foreign projects represented a total of 83% for the year, testifying to the sound competitive standing of the Group in geographical areas with great potential, such as Africa and the Americas, which alone represent 52% of the total value of production.

Operating revenues amounted to €3,333.8 million, accounting for 97.3% of turnover.

The “core” business was Construction, which reported a value of €3,205.4 million, i.e., 96% of the operating revenues.

Operating revenues by sector (€/000)2013%2012%
Construction 3,205,360 96% 1,174,185 100%
Concessions 15,719 0% 0%
Plants 112,741 3% 0%
TOTAL OPERATING REVENUES 3,333,820 100% 1,174,185 100%

The Ethiopian hydroelectric projects, Gibe III and Grand Ethiopian Renaissance Dam, as well as the Ulu Jelai works in Malaysia and the Panama Canal expansion project provided a significant contribution to this result.

Similar considerations can be made with reference to the works for the construction of the Copenhagen metro in Denmark, the construction of the hydraulic tunnel in Abu Dhabi as well as to the works related to the contracts in Venezuela.

Specifically, the Italian market was characterised by the works of the Pedemontana Lombarda motorway, which in 2013 saw the completion of the road link between the A8 and A9 motorways.

Operating revenues by geographical area (€/000)2013%2012%
Italy 491,790 15% 107,379 9%
EU (excluding Italy) 505,919 15% 196,843 17%
Non-EU 225,616 7% 37,156 3%
Asia 390,987 12% 254,561 22%
Africa 850,382 26% 578,246 49%
America 866,063 26% - 0%
Oceania 3,063 0% - 0
TOTAL OPERATING REVENUES 3,333,820 100% 1,174,185 100%

Other non-operating revenues, amounting to €91.8 million, basically relates to entries which, by their nature, are not part of core business (e.g. the recovery of costs incurred on behalf of subsidiaries and charged back to them, technical and administrative services provided to third parties, disposals of materials, insurance reimbursements).


Direct production costs stand at €2,586.4 million and account for 75.5% of total revenues (77.3% in 2012).

Service costs, which represent the direct cost with a greater weighting, refer mainly to expenses incurred to support production volumes and, net of the ancillary costs (amounting to about €35 million) incurred for the public tender offer for Impregilo, are proportional to the growth in turnover.

Personnel costs, standing at €459.4 million, absorbed 13.4% of the value of production.

Results of operations

Results of operations for the year show the substantial income quality of existing projects and the portfolio of work in hand. 

Economic and financial indicators, such as ROI (+12%) and net invested capital turnover (2.8), confirm the positive performance of invested capital, both in terms of profitability and the capacity to generate sales revenues.

The performance in EBITDA is significant which, reaching a total of €316.5 million, has resulted in an EBITDA margin of 9.2%, which is outstanding considering both the impact of the non-recurring costs of the public tender offer, amounting to about €35 million, and the negative effect of €27.3 million, resulting from the application of the IFRS 3 standard for the fair value measurement of the investment in Impregilo. For more details, see the paragraph on “Business combinations” of the notes to the financial statements.

Similar remarks can be made for EBIT, which at €147.7 million represented a ROS of 4.3%.

Results from discontinued operations

The balance of the discontinued operations, amounting to €(88.1) million, mainly includes the net consolidated result of the subsidiary Todini Costruzioni Generali S.p.A., which on 31 December 2013 reported a value of €(73.5) million. 

In financial year 2013 the subsidiary reported some non-recurring events that had a significant impact on profit margins for the period especially in the latter part of the year.

Specifically, the interruption of the works on the construction of the “Alat - Masalli Highway” in Azerbaijan and the subsequent signing of a settlement agreement for the mutual termination of the contract had a negative impact on Group EBIT amounting €40.9 million. The settlement agreement, signed in the second half of the year, showed its effectiveness only near the end of the year with the realisation of the mutual obligations.

Similar considerations can be made for the Dubai contract, where Todini was forced to limit its production activities due to events beyond its control, without having the opportunity of a proportional and simultaneous adjustment of the local structure for both technical and commercial reasons. This situation had a negative impact on the contract’s income statement, which was only partially offset by a supplemental agreement by which the client granted an amount of AED 20 million (equivalent to approximately €4 million) as full and final settlement, well below the additional costs incurred due to the extension of the contract.

The contract in question was substantially completed and no significant future economic impacts are expected.

Moreover, it should also be noted that the new contracts acquired during the year are still in the start-up phase and were not able to generate revenues and profits equivalent to the completed contracts, thus worsening the residual margin for the year.

Part of the result from discontinued operations reflected the ruling of the Court of Cassation and the outcome of the enforcement procedures implemented by the subsidiary Impregilo

S.p.A. with regard to the dispute concerning the claims for damages filed through its subsidiary FIBE for the former CDR plants. Further information about the dispute and the broader situation regarding it is provided in the paragraph of the Annual Report on non- current assets held for sale.

Results for the period

EBT (pre-tax profit) totalled €289.1 million, representing 8.4% of revenues due to the combined effect of the positive operating margins and benefits of financial operations, which were affected by the net impact of the fair value measurement of the controlling interest in Impregilo amounting to €203 million.

The provision for taxes for the year (€43.2 million) includes a current portion of €(59.9) million and a portion for deferred taxes of €16.6 million.

For additional information on the calculation of taxes, see the section on “Income taxes” in the notes to the financial statements.

Economic effects resulting from the application of PPA

The following is a summary of the economic effects of the value adjustments made in accordance with the provisions of IFRS 3 to the assets acquired and liabilities assumed as part of the business combination related to the acquisition of the Impregilo Group.

The application of “purchase price allocation” had a negative impact on EBITDA and EBIT in the amount of €27.3 million and €27.8 million respectively.

The net result of the final PPA amounted to €34.8 million.

Further details can be found in the paragraph on business combinations in the explanatory notes to the financial statements.