CDP Group approves the 2019 consolidated half-yearly financial report
Press release

CDP Group approves the 2019 consolidated half-yearly financial report

13 billion euro in new lending by the Group across all the actions set out in the Business Plan to support the growth of enterprises, infrastructure, public administration and local development

CDP net income up +9% to 1.5 billion euro; consolidated net income was 2.2 billion euro

Postal funding increased to over 260 billion euro

 

Rome, 1 August 2019 h 7:47pm - The Board of Directors of Cassa Depositi e Prestiti S.p.A. (CDP), chaired by Mr Massimo Tononi, approved the Consolidated Half-yearly Financial Report of the CDP Group at 30 June 2019 submitted by Chief Executive Officer Fabrizio Palermo.

 

The CDP Group in support of the Italian economy
The CDP Group granted a total of 12.8 billion euro in loans through:

  • CDP Enterprises (11.1 billion euro), for growth, innovation and international expansion of the entrepreneurial fabric of Italy;
  • CDP Infrastructure, Public Sector and Local Development (1.5 billion euro), benefiting public entities and for the construction of infrastructure projects and local redevelopment initiatives;
  • CDP Cooperation (0.2 billion euro), by promoting initiatives in support of developing countries.

The first half of the year saw a significant change in the CDP Group's operations through the implementation of all the actions set out in the 2019-2021 Business Plan relating to Enterprise, Infrastructure, Public Administration and Local Development, in addition to International Cooperation. 

 

Enterprises
In the first half of the year, the Group accomplished initiatives to support companies with an integrated offering that was closely tailored to their needs and that focused on innovation, growth and exports, through an improved physical channel and a digital channel. The most noteworthy initiatives include:

  • the consolidation of the Group's role in supporting innovation, both through the launch of the National Innovation Fund with a target of 1 billion euro for the development of venture capital in Italy, and through direct and indirect loans to innovative enterprises;
  • the promotion of enterprise growth and credit access through: (i) cooperation agreements to develop production chains in the aerospace and defence sector (with Leonardo and Elite) and in the agri-food and tourism sectors (with the Ministry for Agricultural, Food Forestry Policies and Tourism Coldiretti, and Filiera Italia); (ii) Established the "EuReCa Turismo" Fund with the Emilia Romagna Region for the modernisation of tourist facilities in the region; (iii) the launch of "Officina Italia", a programme that involves more than 100 companies aimed at improving the range of services and products offered by the Group to serve the needs of businesses; and (iv) the launch of a strategic partnership with Assoconfidi and the main Italian Confidi to provide support for more than 320 thousand SMEs;
  • the strengthening of support to enterprises for international expansion through the launch of new digital products and the introduction of "export education" initiatives by the Export Hub SACE SIMEST, and (ii) the issue of the first Basket Bond for the international expansion of enterprises belonging to the Elite Program.

 

Infrastructure, Public Sector and Local Development
In the first half of the year, the Group took a proactive role in supporting infrastructure projects, relaunching a new partnership with the local Public Administration to support investment and innovation. The most noteworthy initiatives include:

  • the start of the first 3 advisory mandates to support the PA in the Health and Education sectors;
  • the first 7 agreements were signed with Group companies and leading Italian stakeholders to accelerate infrastructure construction in the port and maritime, energy, renewable, digital and social sectors;
  • new instruments to encourage investments and innovation by the Public Administration, such as the "Anticipazioni di liquidità" (cash advances) product for the assignment of trade payables owed by the Public Administration to businesses (800 million euro to more than 340 local authorities), and the "Prestito Investimenti Conto Termico" for the execution of energy efficiency projects throughout the country;
  • direct local actions, with the signing of 3 memoranda of understanding for the development of cities and metropolitan areas with the municipalities of Genoa, Naples and Perugia, and the launch of Ospedale del Mare redevelopment project in Venice.

 

International Development Cooperation
The first half of the year was marked by the proactive approach taken by CDP in moving from being a manager of public funds to being a lender, even of its own resources and promoter of sustainable finance. The most noteworthy initiatives include:

  • the loan to the Republic of Tunisia to support local SMEs, drawing on CDP's own funds for the very first time;
  • loans for the development of electrical services in Myanmar and railway infrastructure in Afghanistan;
  • the new "Risparmio senza Frontiere" (Savings without Borders) project launched to encourage the transfer of financial resources from Italian postal passbooks to Tunisian ones, supporting the investments made by the Tunisian Depositary Fund in its country’s growth and development, and encouraging the financial inclusion of migrants.

 

New service model
A new service model was introduced during the first half of the year which focuses on:

  • Proximity to the local area, with the opening of the Group' s first new generation regional headquarters in Verona;
  • Digitisation, through the launch of the contact centre, a new website made more accessible to businesses and the PA, and new product and service catalogues available via the web;
  • New brand identity, to strengthen CDP's institutional mission of supporting the country.

 

CDP for Sustainability
In keeping with the strategic approach defined in the Business Plan, in the first six months of the year CDP launched a series of initiatives aimed at integrating, for the first time, the principles of sustainable development into its operations, through:

  • the amendment of the Articles of Association to extend CDP's scope of operations to include sustainable development projects;
  • an agreement with the European Investment Bank and other European-level Promotion Institutions, to promote circular economy projects up to 10 billion euro over the next 5 years.
  • the introduction of the process for measuring the economic, social and environmental impact of CDP's activities
  • practical initiatives to reduce CDP's environmental impact and to raise awareness among its people of the need to adopt sustainable behaviours such as reducing the use of plastic and paper.

 


Financial results2

 

CDP Group
Consolidated net income was 2.2 billion euro
, which is essentially in line with the first half of 2018. Net income pertaining to the Parent Company was 1.4 billion euro, which is mostly in line with the first half of 2018.

The Group's total assets increased to 438.4 billion euro, up from 425.1 billion euro in 2018. Equity stood at 35.5 billion euro, down slightly from 31 December 2018 (36.7 billion euro).

 

CDP Spa
Net income of the Parent Company amounted to 1.5 billion euro
, up from the same period in the previous year (1.4 billion euro). Gross income increased to 2.0 billion euro (1.9 billion euro in the first half of 2018). 

At 30 June 2019, total assets stood at 382.2 billion euro, an increase from the closing balance at 31 December 2018 (370 billion euro). In particular, cash and cash equivalents amounted to 167 billion euro (-0.5%), loans to customers and banks stood at 100 billion euro (-1.3%), debt securities topped 68 billion euro (+13.3%), and equity investments rose to 33.7 billion euro (+1.8%).

With reference to liabilities, total funding increased to 353.3 billion euro (+3.1%), of which 260.3 billion euro from Postal funding (+0.9%), 20.2 billion euro from bonds (+6.3%) and the remaining 72.8 billion euro from bank and customer funding (+11.1%).

In the first half of 2019, the relaunch of postal savings gained momentum, with a significant improvement in CDP’s net funding compared the first half of 2018 (+1.4 billion euro). The efforts to diversify funding continued during the first half of the year through the issue of new bonds totalling approximately 2.5 billion euro, including the new 750 million euro social bond issue for the financing of school building and urban redevelopment initiatives, and the 1.5 million euro retail bond issued in June.

Equity totalled 23.9 billion euro (24.8 billion euro at the end of 2018).

 

2The CDP Group’s and CDP S.p.A.’s data, presented and commented below, include the balance sheet and income statement figures, reclassified according to the operational criteria currently in use, as shown in the accompanying reconciliation statements. The comparative data refer to the reclassified figures as at 31 December 2018 for the balance sheet situation and at 30 June 2018 for income performance. The comparative data do not include the effects of the application of the new IFRS 16 “Leasing” standard. The reclassified financial statements and the statements of reconciliation are reported as an attachment.

Please note that the Independent Auditors are completing a limited audit of the condensed consolidated half-yearly financial report as at 30 June 2019. The reclassified consolidated financial statements set out in the Annex are not subject to auditing by the Independent Auditors.

The Manager in charge with preparing the company’s financial reports, Paolo Calcagnini, declares pursuant to Article 154-bis, paragraph 2, of the Consolidated Law on Finance that the accounting information contained in this press release corresponds to documentary evidence and the accounting books and records.

The 2019 Half-Yearly Financial Report, together with the certification pursuant to Article 154-bis, paragraph 5 of the Consolidated Law on Finance and the Independent Auditors’ Report will be available to the public at the Company's registered office, on the CDP website and in any other manner provided for by the applicable law, within the legal time limits. 5, del Testo Unico della Finanza e alla relazione della Società di revisione, sarà messa a disposizione del pubblico, presso la sede sociale, sul sito internet di CDP e con le altre modalità previste dalla normativa vigente, entro i termini di legge.

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