Milan, 28 February 2017 – 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 January 2017.
1) Net Financial Position, with current and non-current items reported separately.
Prelios Group Net Financial Position at 31 January 2017 is -10.1 million euro, compared to -6.5 million euro at December 2016.
Prelios S.p.A. Net Financial Position at 31 January 2017 is -42.2 million euro, compared to -41.5 million euro at December 2016.
The Group's net financial position’s changes are mostly due to working capital dynamics.
Specifically, the Group's net financial position worsened by approximately 3 million euro compared to the previous month, primarily due to the net cash flows used in operating activity, as a consequence of an invoicing cycle that did not result in significant collections of fees in January, whereas payments proceeded regularly, although there was a concentration of past-due suppliers during the month.
The Parent Company’s net financial position’s dynamic also includes payables and receivables of a financial nature to and from subsidiaries, eliminated at the Group level.
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 10.2 million euro, as at 31 January 2017, (9.9 million euro at December 2016), today reduced to 6.2 million euro following to payment of 4.0 million euro in February.
This situation falls within the scope of the customary business relations with Prelios Group suppliers.
Prelios S.p.A. past due trade payables total 3.5 million euro, as at 31 January 2017, (3.5 million euro at December 2016), today reduced to 2.8 million euro following to payment of 0.7 million euro in February.
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”), 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 further noted that, following the well-known extraordinary transaction that separated the real estate investments and co-investments from the alternative investment management activities and real estate services, the Prelios Group has recognised - with continuity of accounting values - the subsidiary Focus Investments S.p.A (beneficiary of the spin-off) using the equity method. Accordingly, the result of Focus Investments S.p.A. is recognised under “Income from equity investments”.
As previously and, in more detail, already communicated, following the aforementioned transaction and consequent change in the company shareholding and ownership structure, the Company has evaluated any changes or additions to be made to the scope of the parties considered “related” to the company, deciding to no longer include Pirelli & C. S.p.A. (“Pirelli”) among the related parties of the Company and to confirm that the Company is not a related party of Intesa San Paolo S.p.A. (“Intesa”) and UniCredit S.p.A. (“UniCredit”).
Moreover, the Company has thought it best to voluntarily adopt in any case an ad hoc regulation for specific transactions with Intesa, UniCredit and Pirelli (hereinafter, also referred to as the “Relevant Shareholders”), which is published on the Company’s website with the Procedure for Related-Party Transactions adopted by Prelios.
A summary of the relationships possibly occurred with the Relevant Shareholders will be indicated in the Annual Financial Report.
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 2016, reported below, is compared with the data that refer to last 30 September 2016 with regard to balance sheet data and with the data at 31 December 2015 with regard to income statement data, for which, indeed, only a quarterly update is provided.