Press release

CDP Group: consolidated results for the first half of 2017 approved

Ongoing Business Plan in line with expectations
Positive trend of economic results rising over year

Resources mobilised and progress of the 2016-2020 Business Plan

  • Increase of the Group's resources mobilised in favour of the economy for over € 13 billion (+5% vs 1st half of 2016), of which over € 9 billion invested by the Parent Company (34% vs 1st half of 2016)
  • Over € 11 billion for the growth and international expansion of Italian companies (+1% vs 1st half of 2016)
  • Over the first 18 months, more than 25% of the resources earmarked for investment over the entire Business Plan's horizon (2016-2020) have been mobilised

 

Economic and financial results

  • Sharp increase in economic results: Group net income of € 2.5 billion (€ 0.6 billion in 1st half of 2016) and Parent Company net income of € 1.2 billion (€ 1.1 billion in 1st half of 2016)
  • Strong improvement of profitability: Group gross income equal to € 1.5 billion (practically nil in 1st half of 2016) and Parent Company gross income equal to € 1.5 billion (approximately +8% vs 1st half of 2016)
  • Capital base: substantially stable with a Total equity of € 34.6 billion (€ 35.7 billion in December 2016), and a Parent Company equity of € 23.4 billion (€ 23.2 billion in December 2016).

Rome, 3 August 2017  h 7:17 am

The Board of Directors of Cassa depositi e prestiti S.p.A. (CDP), chaired by Claudio Costamagna, approved yesterday consolidated Half-Year Report of the CDP Group at 30 June 2017 presented by the Chief Executive Officer Fabio Gallia.

 

Resources mobilised and main initiatives

CDP Group

The results for the first half of 2017 confirmed the key development and promotional role of CDP Group in support of the Italian economy: resources mobilised and managed by the Group amounted to approximately € 13.1 billion. The volume of resources mobilised grew (+5%) compared with the first half of 2016 and was in line with the target progress set in the 2016-2020 Business Plan. Resources were allocated as follows: € 6.4 billion (49%) to International expansion, € 4.8 billion (37%) to Enterprises, € 1.8 billion (14%) to the Government, Public Administration and Infrastructure sector and the remaining € 0.1 billion to Real Estate.

Overall, in the first 18 months since the Plan was launched, the CDP Group mobilised resources for € 43 billion in support of domestic economy, accounting for more than 25% of the total planned for the entire 2016-2020 period.

 

Parent Company

The contribution of the parent company CDP to resources mobilised and managed was approximately € 9.3 billion, up 34% on the first half of 2016. In detail, mobilised resources amounted to € 4.2 billion for Enterprises (45%), € 3.2 billion for International expansion (35%) and € 1.9 billion for the Government, Public Administration and Infrastructure sector (20%).

 

Main initiatives

During the first half of the year, CDP finalized a number of initiatives with concrete implications in key sectors of the Italian economy.

In support of territory, new tools were created to grant liquidity to local authorities, households and enterprises: the Fund for Natural Disasters and Central Italy Earthquake in favour of people affected by the earthquake; the European Funds Investment Loan and the Suburban Areas Redevelopment Loans to encourage the immediate allocation of investment by local authorities.

 

Further support for the whole life cycle of businesses was promoted:

  • In the early stage phase with the increase of the investment of the FoF Venture Capital of the Fondo Italiano d’Investimento, dedicated to start-ups;
  • For small and medium-sized enterprises through the launch of the SME Guarantee Fund and the investment in the capital of ELITE S.p.A., a platform to access Alternative Financing;
  • For Mid Corporates with the subscription of units of the FSI Mid-Market Growth Fund and the launch of the CDP Corporate Juncker Platform in support of the investment plans of Italian companies;
  • In the turnaround phase through the subscription of units of the QuattroR Fund.

 

The development of the Real Estate sector was enhanced by increasing the resources allocated to Fondo Investimenti per il Turismo, which have been used to invest in five resorts in major tourist locations and the construction of the most important innovation hub in Europe with the resources of the FIA2 Fund "Smart Housing, Smart Working, Education & Innovation”.

In the infrastructure sector, CDP contributed to fund the implementation of Interconnector, a new electrical interconnection line between Italy and France.

 

Economic and financial results

CDP Group

The Group closed the first half of 2017 with total assets of € 415 billion, up € 4.3 billion (+1% compared to 31 December 2016).

Total equity amounted to € 34.6 billion, slightly down from € 35.7 billion in 2016, of which € 21.9 billion pertaining to the Parent Company (€ 22.5 billion at 31 December 2016).

Gross income grew by € 1.5 billion compared to the first half of 2016, thanks to the significant increase in gains on equity investments: + € 1.3 billion compared to the first half of 2016.

Group net income was positive for approximately € 2.5 billion (€ 0.6 billion in the first half of 2016), thanks to the significant increase in the Parent Company's result and the positive contribution of the consolidated companies.

The Net Income for the half-year pertaining to the Parent Company was € 1.6 billion (€ 0.01 billion in the first half of 2016).

 

Parent Company

Total assets amounted to approximately € 365.6 billion, up approximately € 8 billion (+ 2.2% on the previous year):

  • The stock of liquidity reached € 173.4 billion, up approximately 7.2% on 31 December 2016;
  • The stock of loans to customers and banks slightly decreased to about € 102 billion (€ 103 billion at 31 December 2016);
  • Portfolio debt securities increased to € 50.7 billion (+3.4%) compared to € 49 billion in the previous year.
  • Equity investments and shares amount to € 32.1 billion and are essentially stable (€ 32.6 billion at 31 December 2016);

 

Liabilities:

  • Total funding increased compared to 2016 and amounted to € 339.8 billion (+2.4%), of which € 247.8 billion represented by Postal Funding (-3.0 billion, equal to -1.2%) and € 60.4 billion in bonds (+6.3 billion equal to +11.7%). During the six-month period, CDP continued its strategy of diversifying and stabilizing the sources of funding, as outlined in the 2016-2020 Business Plan, successfully completing a public bond issue for institutional investors, for a nominal value of € 1 billion.
  • Shareholders' equity stood at € 23.4 billion, essentially stable compared to 31 December 2016 (€ 23.2 billion).

 

Gross income (€ 1.5 billion) increased of about 8% compared to the first half of 2016 (€ 1.4 billion), thanks to the increase in net interest income (€ 1.6 billion in the first half of 2017).

Net income was approximately € 1.2 billion, up from the first half of 2016 (€ 1.1 billion).

 

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Please note that the Independent Auditors are completing a limited auditing of the condensed consolidated half-yearly financial report as at 30 June 2017. The reclassified consolidated financial statements set out in the Annex are not subject to auditing by the Independent Auditors.

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The manager responsible for preparing the company’s financial reports, Fabrizio Palermo, declares, pursuant to paragraph 2 of Article 154-bis of the Consolidated Law on Finance, that the accounting information contained in this press release corresponds to the document results, books and accounting records.

 

The 2017 Half-yearly Financial Report, together with the certification pursuant to Article 154-bis of the Consolidated Law on Finance and the Independent Auditors’ Report shall 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.

 

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