Milan, 30 September 2013 – 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 31 August 2013.
1) Net Financial Position, with current and non-current items reported separately.
Prelios Group Net Financial Position at 31 August 2013 is negative for 353.2 million euro, compared to -372.1 million euro at July 2013.
The value at 31 August 2013 factors in the effects of the cash capital increase transaction equal to 115,427,000 euro (of which 70,006,000 euro following the reserved capital increase and 45,421,000 euro following the capital increase with option rights) and, therefore, the amount of the conversion of the previous loans into equity by lenders, thus fulfilling their commitments, has been equal to 69,588,000 euro while the compulsory conversion debenture loan (“Convertible Loan”) has been issued for an amount equal to a nominal value of 233,534,000 euro.
On the other hand, the value at 31 July 2013 factored in the effects of the transaction limitedly to the portion “reserved capital increase in cash” already completed at that date, equal to 70,006,000 euro. As the capital increase with option rights was not yet completed at 31 July 2013 (which has been subsequently finalized on 23 August), the group assumed, against the commitments undertaken by lenders, the conversion into equity of outstanding receivables for 85,000,000 euro - an amount corresponding to the maximum subscription guarantee - and, consequently, an amount of the Convertible Loan of a nominal value of 225,979,000 euro. Such assumptions have been made independently from the actual subscription of the capital increase with option rights by shareholders and by the market.
Prelios S.p.A. Net Financial Position at 31 August 2013 is negative for 365.7 million euro, compared to -388.6 million euro at July 2013.
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 10.5 million euro (8.6 million euro in July 2013), today reduced to 7.7 million euro following the payment of 2.8 million euro in September.
This situation falls within the scope of the customary business relations with Prelios Group suppliers.
Prelios S.p.A. past due trade payables total about 6 million euro (4.8 million euro in July 2013), today reduced to 4.4 million euro following the payment of 1.6 million euro in September.
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.
This press release reports the monthly disclosure updated with reference to the dealings with Other Related Parties, while data relating to the dealings with associated companies, joint ventures and other companies of Prelios Group, as well as Prelios S.p.A. subsidiaries, reported below, refer to last 30 June 2013. 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.
It should also be noted that Prelios Group consolidates (on a line-by-line basis or with the equity method) about 200 companies, most of which are minorities, valuated using the equity method, booked under item “Earnings from equity investments”. In order to have monthly data, it would therefore be necessary to implement a chain of processes involving all the companies in question, with an enormous outlay of resources and high costs, which would provide information of limited significance, when considering the business cycle of the real estate sector which updates valuations on a quarterly or half-yearly basis.