Annual report Annual report 2014 Annual report www.atlantia.it Annual Report 2014 (This page intentionally left blank) Contents Contents 1. Introduction ............................................................................................................. 5 Highlights .................................................................................................................. 6 Consolidated financial highlights ..................................................................................... 12 Key market data for Atlantia ........................................................................................... 13 Ownership structure ..................................................................................................... 14 Share price performance ............................................................................................... 15 Group structure .......................................................................................................... 16 The Group around the world .......................................................................................... 17 Corporate bodies ......................................................................................................... 18 Statement to Shareholders ............................................................................................. 20 2. Report on operations .................................................................................................. 23 Group financial review .................................................................................................. 25 Pro forma consolidated income statement for 2013 .............................................................. 48 Financial review for Atlantia S.p.A. .................................................................................. 51 Key performance indicators by operating segment ................................................................ 60 Key performance indicators for the Group’s principal subsidiaries ........................................... 62 Italian motorways ......................................................................................................... 64 Overseas motorways ...................................................................................................... 72 Italian airports ............................................................................................................ 76 Other activities ........................................................................................................... 81 Innovation, research and development .............................................................................. 83 Workforce .................................................................................................................. 85 Corporate Governance .................................................................................................. 93 Sustainability .............................................................................................................. 95 Related party transactions .............................................................................................. 104 Significant regulatory aspects and litigation ........................................................................ 105 Other information ....................................................................................................... 114 Events after 31 December 2014 ........................................................................................ 116 Outlook and risks or uncertainties ................................................................................... 118 Proposed resolutions for the Annual General Meeting of Atlantia S.p.A.’s shareholders ................. 119 3. Atlantia Group’s consolidated financial statements and notes .............................................. 121 4. Atlantia S.p.A.’s separate financial statements and notes .................................................... 243 5. Reports .................................................................................................................... 313 6. Key performance indicators for subsidiaries, associates and joint ventures ......................... 329 7. Shareholders’ resolutions ............................................................................................. 337 Annual report 2014 3 Introduction 1 1. Introduction Highlights Infrastructure, finance, technology and innovation Over 5 million customers a day using the Group’s motorways. 44 million passengers a year served by Rome’s airports Total revenue of €5.1 bn EBITDA of €3.2 bn Capital expenditure of €1.1 bn 6 Highlights 5,000 km of toll motorways in Italy, Brazil, Chile, India and Poland 2 airports in Italy A technological leader, world number one in electronic tolling systems, airport automation solutions and traffic information services Annual report 2014 7 1. Introduction 60 years of setting records 1958/64 1963 1990 Autostrada del Sole Eurobond Telepass Construction First Eurobond issue The world’s first and opening of the 800 in the history of the free-flow tolling system km long Autostrada capital markets del Sole motorway (A1 Milan-Naples) 2005 2007 2012 Tutor Patented method Brazil and Chile of tunnel widening The world’s first system The world’s first system Atlantia expands for monitoring average of excavation without its presence in Brazil, speeds interrupting traffic flow with responsibility for over 1,500 km of network Atlantia strengthens its foothold in Chile, operating more than 300 km of network 8 Highlights 1995 2003 2004 USA UK Austria The first ever privately- Opening of the M6 Toll, the The world’s first free-flow owned toll motorway in UK’s first ever toll motorway tolling system on over the USA, the Dulles 2,000 km of motorway Greenway, Virginia network 2014 2014 Aeroporti di Roma Variante di Valico Integration Boring of tunnels for and turnaround the Variante di Valico of Aeroporti di Roma completed, using the world’s biggest tunnelling machine Annual report 2014 9 1. Introduction Global presence USA Brazil Chile 1,538 km of network 313 km of network Casablanca Algarrobo Rio Bueno São Paulo Cartagena Puerto Montt ETC Corporation Tria ngulo do Sol Santiago Litoral Central Los Lagos Tolling systems Tietê Costanera Norte Colinas Vespucio Sur Nascentes das Gerais Nororiente Vial Aeropuerto 10 Highlights Italy • 6 motorway operators, representing to a total network of 3,005 km • 8.5 million Telepass devices • Aeroporti di Roma Poland India The Roman airport system 61 km of network 110 km of network Katowice Pune Rome Krakow Solapur Fiumicino Ciampino Stalexport Autostrady Pune-Solapur Aeroporti di Roma Annual report 2014 11 1. Introduction Consolidated financial highlights (EM) 2014 (a) 2013 (a) (b) Total revenue 5,083 4,221 Net toll revenue 3,678 3,540 Aviation revenue 520 34 Other operating income 885 647 Gross operating profit (EBITDA) 3,169 2,585 Adjusted gross operating profit (EBITDA) (c) 3,246 2,665 Operating profit (EBIT) 1,933 1,821 Profit/(Loss) from continuing operations 1,262 1,124 Profit for the period (including non-controlling interests) 773 721 Profit attributable to owners of the parent 740 637 Operating cash flow (d) 2,079 1,663 Adjusted operating cash flow (c) 2,181 1,658 Capital expenditure 1,100 1,247 (EM) 31.12.2014 (a) 31.12.2013 (a) (b) Equity (including non-controlling interests) 8,263 8,210 Equity attributable to owners of the parent 6,519 6,481 Net debt 10,528 10,769 Adjusted net debt (c) 11,666 12,541 (a) Comparative amounts reflect the different contribution to the operating results and operating cash flow of the former Gemina group companies, consolidated from 1 December 2013; they also reflect the deconsolidation, in the first half of 2014, of TowerCo, as described in the section, “Group financial review”. (b) Certain amounts in the income statement for 2013 and statement of financial position as at 31 December 2013 have been restated with respect to those published in the Anual Report for 2013. In particular, these changes regard: i) completion of the process of identifying the fair value of the assets and liabilities of the former Gemina group companies, consolidated from 1 December 2013; ii) reclassification of TowerCo’s contribution to the consolidated income statement to “Profit/(Loss) from discontinued operations”, following completion of the sale of this company in the first half of 2014, and reclassification of the contributions of Ecomouv, Ecomouv D&B and Tech Solutions Integrators to “Profit/(Loss) from discontinued operations”, following the French government’s decision to terminate the contract for collection of the ecotax (the “Eco-Taxe” project). (c) Information on the nature of the adjustments and on differences between the reported and adjusted amounts is provided in the specific section “Group financial review”. (d) Operating cash flow is calculated as profit + amortisation/depreciation +/- provisions/releases of provisions + financial expenses from discounting of provisions +/- impairments/reversals of impairments of assets +/- share of profit/(loss) of investments accounted for using equity method +/- (losses)/gains on sale of assets +/- other non-cash items +/- portion of net deferred tax assets/liabilities recognised in profit or loss. 12 Key market data for Atlantia Key market data for Atlantia KEY MARKET DATA 2014 2013 KEY MARKET DATA 2014 2013 Issued capital (at 31 December) (E) 825,783,990 825,783,990