Annual Report 2016 since 1850 1. Executive summary 100% 97.13% 100% 2.87% CDP CDP Fintecna CDP RETI Equity 100% Immobiliare SACE S.p.A. 59.10% S.p.A. S.p.A. S.p.A. S.r.l. ENI S.p.A. 25.76% Ligestra S.r.l. 100% Saipem S.p.A. 12.55% 50% Alere S.p.A. 29.85% Terna S.p.A. Poste Ansaldo 35.00% Ligestra Due S.r.l. 100% 44.84% 50% Bonafous S.p.A. 76.01% SIMEST S.p.A. Italiane S.p.A. Energia S.p.A. Terna group AcciaItalia S.p.A. 27.50% Ligestra Tre S.r.l. 100% Open Fiber S.p.A. 50.00% 50% Cinque Cerchi S.p.A. 1.12% 7 7.12% M.T. Manifattura FSI SGR S.p.A. 49.00% Ligestra Quattro S.r.l. 100% 90.91% 100% SACE FCT S.p.A. 28.98% SNAM S.p.A. Tabacchi S.p.A. FSI Investimenti S.p.A. Europrogetti & Manifatture 31.8% XXI Aprile S.r.l. 100% 50% 100% SACE do Brasil Finanza S.p.A. (i.l.) Milano S.p.A. SNAM group Consortiums Trevi Finanziaria Pentagramma African Trade 16.86% 50% 5.51% QuattroR SGR S.p.A. 29.41% and other Industriale S.p.A. Perugia S.p.A. Insurance Company 13.50% Risparmio 71.64% Rocco Forte Pentagramma 100% 20.00% 23.00% 50% SACE BT S.p.A. 25.08% Italgas S.p.A. Holding S.p.A. Hotels Ltd Piemonte S.p.A. 0.97% Fincantieri S.p.A. Valvitalia Quadrifoglio 0.50% 50% 100% Finanziaria S.p.A. Modena S.p.A. Italgas SACE Servizi S.r.l. group Fincantieri Residenziale Kedrion S.p.A. 25.06% 74.47% group Immobiliare 2004 S.p.A. IQ Made in Italy Sviluppo Turistico Culturale FSIA Investimenti S.r.l. 25% Investment Company S.p.A. Golfo di Napoli S.c.ar.l. 50% 100% 28.40% 49.48% Consortiums and other 100% CDP GAS S.r.l. Inalca S.p.A. SIA S.p.A. 25.00% Fondo Italiano CDP d’Investimento 70% Investimenti 40% Galaxy S.àr.l. SICAR SGR S.p.A. SGR S.p.A. 20.83% Fondo Italiano d’Investimento LEGEND 100% Fondo Investimenti per la Valorizzazione Extra 14.01% F2i - Fondi Italiani per le Infrastrutture SGR S.p.A. Business sectors 63.29% FoF Private Debt ENTERPRISES 100% Fondo Investimenti per la Valorizzazione Plus F2i - Fondo Italiano per le Infrastrutture REAL ESTATE A shares 8.10% C shares 0.04% 62.50% FoF Venture Capital INTERNATIONAL EXPANSION 49.31% Fondo Investimenti per l’Abitare INFRASTRUCTURE F2i - Secondo Fondo Italiano per le Infrastrutture 20.83% Fondo Italiano d’Investimento Fondo di Fondi 100% Fondo Investimenti per il Turismo (FIT) A shares 8.05% Type of control/in uence C shares0.02% 20.83% Fondo Italiano d’Investimento FII Venture CONTROL Fondo Immobiliare di Lombardia - 4.21% 14.08% 2020 European Fund for Energy, Climate DE FACTO CONTROL Comparto Uno (formerly Abitare Sociale 1) 1.14% European Investment Fund Change and Infrastructure SICAV-FIS S.A. SIGNIFICANT INFLUENCE 11.29% (Fondo Marguerite) Sinloc S.p.A. JOINT CONTROL 11.77% Fondo Atlante OTHER EQUITY INVESTMENTS OTHER 2.21% Inframed Infrastructure S.A.S. à capital INVESTMENT FUNDS Istituto per il Credito Sportivo variable (Fondo Inframed) 11.60% Fondo Atlante 2 A shares 38.92% B INVESTMENT VEHICLES 14.58% B shares 0.01% Fondo PPP Italia FUNDS MANAGEMENT RELATIONSHIP European Energy Eciency Fund SA, SICAV-SIF (Fondo EEEF) i.l.: in liquidazione A shares 10.70% C shares 1.68% 100% 97.13% 100% 2.87% CDP CDP Fintecna CDP RETI Equity 100% Immobiliare SACE S.p.A. 59.10% S.p.A. S.p.A. S.p.A. S.r.l. ENI S.p.A. 25.76% Ligestra S.r.l. 100% Saipem S.p.A. 12.55% 50% Alere S.p.A. 29.85% Terna S.p.A. Poste Ansaldo 35.00% Ligestra Due S.r.l. 100% 44.84% 50% Bonafous S.p.A. 76.01% SIMEST S.p.A. Italiane S.p.A. Energia S.p.A. Terna group AcciaItalia S.p.A. 27.50% Ligestra Tre S.r.l. 100% Open Fiber S.p.A. 50.00% 50% Cinque Cerchi S.p.A. 1.12% 7 7.12% M.T. Manifattura FSI SGR S.p.A. 49.00% Ligestra Quattro S.r.l. 100% 90.91% 100% SACE FCT S.p.A. 28.98% SNAM S.p.A. Tabacchi S.p.A. FSI Investimenti S.p.A. Europrogetti & Manifatture 31.8% XXI Aprile S.r.l. 100% 50% 100% SACE do Brasil Finanza S.p.A. (i.l.) Milano S.p.A. SNAM group Consortiums Trevi Finanziaria Pentagramma African Trade 16.86% 50% 5.51% QuattroR SGR S.p.A. 29.41% and other Industriale S.p.A. Perugia S.p.A. Insurance Company 13.50% Risparmio 71.64% Rocco Forte Pentagramma 100% 20.00% 23.00% 50% SACE BT S.p.A. 25.08% Italgas S.p.A. Holding S.p.A. Hotels Ltd Piemonte S.p.A. 0.97% Fincantieri S.p.A. Valvitalia Quadrifoglio 0.50% 50% 100% Finanziaria S.p.A. Modena S.p.A. Italgas SACE Servizi S.r.l. group Fincantieri Residenziale Kedrion S.p.A. 25.06% 74.47% group Immobiliare 2004 S.p.A. IQ Made in Italy Sviluppo Turistico Culturale FSIA Investimenti S.r.l. 25% Investment Company S.p.A. Golfo di Napoli S.c.ar.l. 50% 100% 28.40% 49.48% Consortiums and other 100% CDP GAS S.r.l. Inalca S.p.A. SIA S.p.A. 25.00% Fondo Italiano CDP d’Investimento 70% Investimenti 40% Galaxy S.àr.l. SICAR SGR S.p.A. SGR S.p.A. 20.83% Fondo Italiano d’Investimento LEGEND 100% Fondo Investimenti per la Valorizzazione Extra 14.01% F2i - Fondi Italiani per le Infrastrutture SGR S.p.A. Business sectors 63.29% FoF Private Debt ENTERPRISES 100% Fondo Investimenti per la Valorizzazione Plus F2i - Fondo Italiano per le Infrastrutture REAL ESTATE A shares 8.10% C shares 0.04% 62.50% FoF Venture Capital INTERNATIONAL EXPANSION 49.31% Fondo Investimenti per l’Abitare INFRASTRUCTURE F2i - Secondo Fondo Italiano per le Infrastrutture 20.83% Fondo Italiano d’Investimento Fondo di Fondi 100% Fondo Investimenti per il Turismo (FIT) A shares 8.05% Type of control/in uence C shares0.02% 20.83% Fondo Italiano d’Investimento FII Venture CONTROL Fondo Immobiliare di Lombardia - 4.21% 14.08% 2020 European Fund for Energy, Climate DE FACTO CONTROL Comparto Uno (formerly Abitare Sociale 1) 1.14% European Investment Fund Change and Infrastructure SICAV-FIS S.A. SIGNIFICANT INFLUENCE 11.29% (Fondo Marguerite) Sinloc S.p.A. JOINT CONTROL 11.77% Fondo Atlante OTHER EQUITY INVESTMENTS OTHER 2.21% Inframed Infrastructure S.A.S. à capital INVESTMENT FUNDS Istituto per il Credito Sportivo variable (Fondo Inframed) 11.60% Fondo Atlante 2 A shares 38.92% INVESTMENT VEHICLES 14.58% B shares 0.01% Annual Report 2016 C Fondo PPP Italia FUNDS MANAGEMENT RELATIONSHIP European Energy Eciency Fund SA, SICAV-SIF (Fondo EEEF) i.l.: in liquidazione A shares 10.70% C shares 1.68% Group structure Group CDP CDP We promote Italy’s future by contributing to economic development and investing in competitiveness (Translation from the Italian original which remains the definitive version) Summary Letter to shareholders 2 Company bodies, officers and governance 4 1. Executive summary 6 The CDP Group, role and mission 8 Performance and KPI 2016 10 Main events in 2016 12 CDP’s business model 14 2016-2020 Business Plan and 2016 activities 16 Financial highlights 20 Main equity investments 26 2. Report on operations 30 1. Composition of the CDP Group 32 2. Financial aggregates and performance indicators 40 3. Macroeconomic scenario and the market 42 4. 2016-2020 Business Plan 50 5. Corporate Governance 121 6. Outlook of operations 139 7. Relations of the Parent Company with the MEF 140 3. Separate financial statements 2016 142 Separate financial statements 148 Notes to the separate financial statements 154 Annexes to the separate financial statements 273 Report of the Board of Statutory Auditors 282 Report of the Independent Auditors 285 Certification of the separate financial statements 287 4. Consolidated financial statements 2016 288 Consolidated financial statements 294 Notes to the consolidated financial statements 302 Annexes to the consolidated financial statements 485 Report of the Independent Auditors 496 Certification of the consolidated financial statements 498 5. Shareholders’ resolution 500 1. Executive summary Letter to shareholders Dear Shareholders, In 2016, the Italian economy was affected by a number of con- through a multiplier effect of additional euro 20 billion, com- flicting factors that made the environment in which the CDP ing from public and private investors in Italy and abroad, for a Group operated even more challenging. On the one hand, the total volume of mobilized resources of around euro 50 billion: recovery stabilized, albeit at a slower pace than other major this represented a powerful financing boost for the develop- European countries. GDP grew at a slightly faster rate than in ment of Italy. Promoting the economy, however, did not under- 2015, thanks to domestic demand, which was driven by house- mine our profitability, which rose sharply, or our capital base, hold consumption and, above all, gross fixed capital formation. which was strengthened considerably. The Group posted net The renewed dynamism of the economy was reflected in the income of euro 1.1 billion after the loss registered in 2015, while business and household confidence indexes, which remained the Parent Company’s net income of about euro 1.7 billion was at a high level, although slightly down on the previous year.