Milan, 31 March 2016 – In compliance with the request sent by Consob on 13 September 2012, pursuant to article 114, paragraph 5, of Legislative Decree 58/1998, the following information is provided on Prelios S.p.A. and its Group, as at 29 February 2016.
As already announced to the market, on 25 February 2016, in accordance with the obligations set forth by the New Debt Restructuring Agreement with the Lending Banks, following the contribution of about 20 million Euro to Focus Investments S.p.A. by Prelios S.p.A., Prelios was released in full from all and any liability as regards the debt transferred to Focus Investments, equal to about 176 million Euro, on the contribution effective date. The following indicators, as at 31 January 2016, therefore include this debt position given that Prelios, on the above date, had not yet been released from the obligation.
1) Net Financial Position, with current and non-current items reported separately.
Prelios Group Net Financial Position at 29 February 2016 is -7.1 million euro, compared to -207.1 million euro at January 2016.
Prelios S.p.A. Net Financial Position at 29 February 2016 is -56.8 million euro, compared to -253.1 million euro at January 2016.
2) Past due payables, recorded by category (financial, trade, tax, social security and amounts due to employees) and any associated actions by creditors (reminders, injunctions, suspended deliveries, etc.):
Prelios Group past due trade payables total 13.2 million euro (11.6 million euro at January 2016), today reduced to 9.0 million euro following to payment of 4.2 million euro in March.
This situation falls within the scope of the customary business relations with Prelios Group suppliers.
Prelios S.p.A. past due trade payables total 3.9 million euro (3.9 million euro at January 2016), today reduced to 3.1 million euro following to payment of 0.8 million euro in March.
There are no legal disputes, court proceedings or suspended deliveries associated with the above items. Any payment reminders are part of normal business relations.
There are no past due amounts of a financial or tax nature, or amounts due to social security institutions or to employees.
3) Prelios Group and Prelios S.p.A. dealings with Related Parties:
Dealings with related parties consisting of subsidiary companies of Prelios S.p.A. or joint ventures and its associated companies (“Intragroup Dealings”), and dealings with related parties other than intragroup dealings (“Other Related Parties”), in particular Pirelli & C. S.p.A. and its subsidiaries, are of a trade and financial nature, falling within normal business operations, and are at arm’s length. There are no atypical and/or unusual transactions.
It should be noted that after the extraordinary transaction to separate its property investments and co-investment business activities from the services business (asset and fund management, integrated asset services, brokerage and assessment services, credit servicing), the Prelios Group uses the equity method to consolidate the investment in company Focus Investments S.p.A (beneficiary of the spin-off), whose contribution is posted under the item “Net investment income (loss)”.
In view of the recent capital increase completed in March 2016 and the consequent change in the composition of the shareholding and ownership structures, the relevant corporate bodies of Prelios S.p.A. will shortly evaluate any changes or additions to be made to the scope of the parties considered "related" parties in these financial statements.
It should be noted that the disclosure concerning the dealings with associated companies, joint ventures and other companies of Prelios Group as well as Prelios S.p.A. subsidiaries, relating to December 2015, reported below, is compared with the data that refer to last 30 September 2015 with regard to balance sheet data and with the data at 31 December 2014 with regard to income statement data. This is due to the fact that the Group’s internal invoicing cycle is essentially quarterly and no significant accounting provisions are made with subsidiary and associated companies in the intervening months. This especially affects operating Revenues and Costs, Financial Income and Charges, current Trade Receivables and Payables, which are items that do not therefore vary significantly in the intervening months.