SAVE Group Consolidated Financial Statements at 31 December 2013
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Bilancio 2012 Save Spa 1 SAVE Group Consolidated Financial Statements at 31 December 2013 Contents 7 Chairman’s letter 9 SAVE S.p.A. Ownership Structure 9 SAVE S.p.A. Board of Directors 10 SAVE S.p.A. Board of Statutory Auditors 14 Directors' Report 54 2013 Consolidated Financial Statements Consolidated Balance Sheet Consolidated Income Statement Consolidated Comprehensive Income Statement Consolidated Cash Flow Statement Statement of change in consolidated shareholders’ equity 60 Notes to the Consolidated Financial Statements 134 Supplementary Statements Statement of changes in intangible assets Statement of changes in tangible assets Transactions with Group companies 138 Declaration of the Consolidated Financial Statements as per Article 154-bis of Legs. Decree 58/98 Independent Auditors’ Report 6 Chairman’s letter Dear Shareholders, 2013 was a year of major changes for the SAVE Group. In addition to the long-awaited application of the new tariff system at Venice airport under the Regulatory Agreement, a fundamental review of the corporate strategy was undertaken, resulting in a re-focus on the Airport Management activities. The first consequence of this strategy review was the signing in September of an agreement with the Lagardère Group for the sale, in an initial phase, of 50% of the subsidiary Airest S.p.A., enabling the further development of an internally created enterprise and brands through the experience and the network of a major international Group and paving the way for growth internationally. The second consequence was the opening of concrete negotiations for the formation of an infrastructural hub involving - in addition to the two managed airports of Venice and Treviso - also Verona airport, the second largest airport in the Veneto region and strategically positioned in one of the richest catchment areas in Italy, boasting major tourist attractions and extensive industrial activity. Also in view of the National Airports Plan, which lays the basis for the creation of a co-ordinated airport network, the focus centres on the building of a System which further develops the potential of a region which is unrivalled in tourism and economic terms and also due to the wide availability of transport infrastructure, through investments which will drive economic performance and provide employment in our region. The SAVE market strategy - since its inception based on a large number of airlines and growth derived from the significant international focus of the airport - was again confirmed by the results posted in 2013, with Venice among the few airports to report improved traffic numbers. These results are the basis for our optimistic outlook - even considering possible developments within the Italian flag carrier. Finally, the application of the new tariff system has enabled the rolling out of a key investment plan at Venice airport, with the design of central development works beginning which will radically alter the appearance of the airport, modernising it in line with the highest sector quality standards, doubling capacity and facilitating the expected passenger growth. The peak development phase of the plan will be between 2015-2018, with investments totalling approx. Euro 600 million until 2021. A significant development supporting SAVE’s commitment to the region was seen in 2013. SAVE was instrumental in the creation of a Work Group in December for the management of relations between the airport and the surrounding communities which has drawn praise nationally. The Group meets periodically and on the basis of a wide-ranging agenda discusses issues relating to the development of airport investment projects and all issues concerning the environment and the interests of the local community. The SAVE Work Group provides a dedicated forum for face-to-face meetings, dialogue and interchange. The strength of SAVE’s capital base was again confirmed with the company, despite weathering one of the most severe economic crises to have hit the western world, rewarding shareholders with the distribution - also in light of the refocus on the airport business alone and in addition to dividends of Euro 23 million in 2012 - of further dividends totalling Euro 100 million from reserves, without any impact whatsoever on the financial capacity and future development of the company. 7 In view of that outlined above, the Board of Directors with great pleasure proposes to the Shareholders’ AGM, and in view of the continued capital strength of the company and in the expectation of strong results, a pay-out of Euro 27 million - an increase of 17.4% on the previous year. With warmest regards, Enrico Marchi March 13, 2014 8 SAVE S.p.A. Share capital: Euro 35,971,000.00 fully paid-in Registered Office: Marco Polo Airport - Venice Tessera Viale G. Galilei, 30/1 Venice REA No.: 201102 Venice Company Registration Office No.: 29018, Tax Code and VAT number: 02193960271 Control of the company Based on the shareholders’ register, through communications received in accordance with Article 120 of Legislative Decree No. 58/98 and other information available to the company, the shareholders of SAVE S.p.A. with holdings of greater than 2% at December 31, 2013 were: DIRECT SHAREHOLDER % held MARCO POLO HOLDING S.R.L. 40.12 SAN LAZZARO INVESTMENTS SPAIN SL 18.23 BANCA POPOLARE DI VICENZA S.C.P.A. 8.26 PROVINCE OF VENICE 6.48 SAVE S.P.A. 6.09 SVILUPPO 73 S.R.L. 4.31 FOUNDATION OF VENICE 2.20 SVILUPPO 91 S.R.L. 2.11 MUNICIPALITY OF TREVISO 2.09 MARKET 10.11 Board of Directors The Board of Directors appointed by the Shareholders’ AGM of April 18, 2012 and in office at December 31, 2013 were: Name Office Enrico Marchi Chairman & CEO Monica Scarpa CEO Paolo Simioni CEO Gabriele Andreola Director * (A) Manuela Boschieri Director Alberto Donzelli Director Matteo Pigaiani Director Amalia Sartori Director * (B) Mauro Sbroggiò Director Ronald P. Spogli Director * (B) Sandro Trevisanato Director * (A) Igor Visentin Director * (A) * Independent Director. (A) Member of the Control & Risks Committee. (B) Member of the Remuneration Committee. 9 On April 11, 2013, Ambassador Ronald P. Spogli was co-opted by the Board of Directors, in accordance with Article 2386 of the Civil Code, as a new Director of the Company in replacement of the resigning Mr. Daniele De Giovanni. Board of Statutory Auditors The Board of Statutory Auditors in office at December 31, 2013, appointed by the Shareholders’ AGM of April 18, 2012, were: Name Office Arcangelo Boldrin Chairman (A) Silvio Salini Statutory Auditor Nicola Serafini Statutory Auditor Valter Pastena Statutory Auditor Paolo Venuti Statutory Auditor Lino De Luca Alternate Auditor Andrea Martin Alternate Auditor (A) Member of the Supervisory Board. Independent Audit Firm Reconta Ernst & Young S.p.A. 10 The SAVE Group by Business Area The following chart outlines the structure of the SAVE Group at December 31, 2013 by Business Area of the main operating companies. SAVE S.p.A. (“Save” or the “Parent Company”) manages Marco Polo Airport of Venice. Save has shareholdings in: companies operating in the Airport Management sector; companies operating in the Transport Infrastructure Management and related services sector; companies operating in the sector providing hospitality and store management services for travellers, such as travel retail shops, newsstands, tobacconists, bookshops, food shops and gadget shops within transport infrastructure (airports, motorways and railway stations) and shopping centres in Italy and abroad. Following the agreement signed in September 2013 with the Lagardère Group, which provides for the exit of the SAVE Group from the Food & Beverage and Retail activities carried out through the Airest Group and the decision of management to divest of the Centostazioni holding, the assets and the related liabilities of the above-stated companies were assessed and classified in the present document as Assets/Liabilities held-for-sale in accordance with IFRS 5. 11 Share performance The Save share performance in 2013 is outlined below and tracked against the FTSE IT All-Share index. The official price at December 31, 2013 was Euro 12.353 per share. The Stock market capitalisation at that date was approx. Euro 684 million. Save Save - FTSE It All Share 12 Consolidated Financial Highlights Dec 31, 13 Dec 31, 12 Cge. % (in millions of Euro) (1) Revenues 145.5 133.5 8.9% EBITDA* 58.5 53.0 10.4% EBIT** 43.9 39.0 12.7% Net profit from Continuing Operations 32.4 32.6 -0.6% Group net profit 24.8 32.0 -22.6% Fixed capital from Continuing Operations 267.2 475.6 -43.8% Net working capital from Continuing Operations (21.7) (46.6) -53.6% Net capital employed from Discontinued Operations 188.6 Net capital employed*** 434.1 429.0 1.2% - Parent 213.5 320.7 -33.4% - Minority interest 29.4 26.7 10.1% SHAREHOLDERS' EQUITY 242.9 347.4 -30.1% Net financial position from Continuing Operations 102.6 Net financial position from Discontinued Operations 88.7 NET FINANCIAL POSITION 191.2 81.6 134.4% EBIT/Revenues (ROS) 30.2% 29.2% EBIT/Net capital employed Continuing Operations (ROI) 17.9% n.a. 0.79 0.23 NFP/Net equity - Gearing (1) Management took the decision during the year to divest of holdings in Airest S.p.A. and Centostazioni S.p.A., thereby exiting the Food & Beverage and Retail and Infrastructure Management business areas. Consequently, the relative Italian and international assets were classified in the present consolidated financial statements as Assets held-for-sale in accordance with IFRS 5. The classification of these operations as Discontinued Operations resulted in: for 2013 and, for comparative purposes for 2012, the classification of the cost and revenue accounts concerning Discontinued Operations to “Profit/(loss) of Discontinued Operations” of the Income Statement; the reclassification of the relative current and non-current assets at December 31, 2013 to the account “Assets held-for-sale” of the Balance Sheet; the reclassification of the relative liabilities (excluding shareholders’equity) concerning the “Assets held-for-sale” at December 31, 2013 to the account “Liabilities related to assets held-for-sale” of the Balance Sheet.