Milan, 31 May 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 30 April 2016.
1) Net Financial Position, with current and non-current items reported separately.
Prelios Group Net Financial Position at 30 April 2016 is -0.7 million euro, compared to a liquidity situation of 2.3 million euro at March 2016.
Prelios S.p.A. Net Financial Position at 30 April 2016 is -48.0 million euro, compared to -45.7 million euro at March 2016.
As already illustrated to the market, the significant improvement of net financial position is attributable to the finalization of the extraordinary contribution and share capital increase transaction concluded in March. In particular, the € 184.2 million enhancement compared to 31 December 2015 is mainly attributable to the cash flows generated by the Centauro transaction totalling € 194.1 million, of which (i) € 134.1 million as a result of the spin-off of the Investments platform and (ii) € 60 million following the final phase of the share capital increase. This dynamic, which depicts cash flows at Group level, had already partly emerged at Prelios S.p.A. level at 31 December 2015. We remind that the latter, representing only the financial situation of the Parent company, also highlights financial payables and receivables to/from subsidiaries, that are eliminated at Group level.
Instead, Group Net Financial Position has worsened of about 3 million compared to the previous month, mainly for the billing and flush cycle with substantially quarterly basis, regarding recurring fees, against a dynamic of payments made of a concentration of extraordinary charges and overdue suppliers.
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 12.9 million euro (13.3 million euro at March 2016), today reduced to 7.4 million euro following to payment of 5.5 million euro in May.
This situation falls within the scope of the customary business relations with Prelios Group suppliers.
Prelios S.p.A. past due trade payables total 4.5 million euro (4.0 million euro at March 2016), today reduced to 3.5 million euro following to payment of 1.0 million euro in May.
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 alternative asset management business (fund and asset management and credit servicing) and real estate services related to them (integrated asset services, which include property and project management (i.e. “Integra”), real estate brokerage services (i.e. “Agency”) and assessment services (i.e. “Valuations”)), 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 March 2016, reported below, is compared with the data that refer to last 31 December 2015 with regard to balance sheet data and with the data at 31 March 2015 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.