CDP Group: Draft Separate Financial Statement and Consolidated Financial Statements Approved

FY 2016 RESULTS IMPROVE SUBSTANTIALLY in line with 2016-2020 Business Plan, despite the challenging macroeconomic environment

• Resources mobilised by the Group in favor of the Italian economy rise to €30 billion, activating investments for €50 billion.

• Performance improves substantially in 2016: CDP Net Income equal to €1.7 billion (Net Income in 2015 of €0.9 billion, + 86%) and Group Net Income of €1.1 billion (compared to a loss of €0.9 billion in 2015).

• Stronger capital base: CDP shareholders’ equity equal to €23.2 billion (+ €3.7 billion vs 2015) and Group shareholders’ equity equal to €35.7 billion (+ €1.1 billion vs 2015).

• Participation in major extraordinary operations.

The Board of Directors of Cassa Depositi e Prestiti Spa (CDP) chaired by Claudio Costamagna today approved the draft separate financial statements and the consolidated financial statements as of 31 December 2016, presented by CEO Fabio Gallia. The draft financial statements will be submitted for approval to the Shareholders’ Meeting called for 16 May 2017 at single call (instead of 25 May 2017 as previously announced). 

2016: first year of our Business Plan

The year 2016 was the first year of the new Business Plan 2016-2020, which has set ambitious medium- and long-term objectives in terms of resources mobilised for the economy and in terms of new tools made available, which scope is much broader than those traditionally employed.

In line with expectations, the year just ended also marked a major change of pace in the operations of CDP, with the start of the main business initiatives in the four lines of intervention set out in the Plan (i.e., Government, Public Administration and Infrastructure; International Expansion; Enterprises; Real Estate).

Resources mobilised by CDP Group in 2016

Performance in 2016 confirms the central and promotional role by CDP Group in supporting the Italian economy: New resources mobilised and managed by the Group amounted to about €30 billion with more than €50 billion of activated investments. The result raised if compared with the previous year and in line with the growth target set out in the 2016-2020 Business Plan. Of the total resources, 47% was channeled to the international expansion of Italian firms (€14.2 billion), 35% to enterprises (€10.5 billion) and the remaining 18% (€5.4 billion) to the Government, Public Administration, Infrastructure and Real Estate sectors.

Resources mobilised by CDP in 2016

The contribution of the Parent Company, i.e. CDP, to resources mobilised and managed amounted to more than €15 billion with more than €31 billion in activated investments. The resources mobilised showed a small contraction with respect to 2015, which reflected the substantial decrease in the volume of liquidity provision to the banking sector, also due to the expansionary monetary policy. Net of some large operations carried out in 2015, such as the guarantee granted to the National Resolution Fund in the amount of €1.7 billion and advances for the payment of debts of Government entities totalling €0.8 billion, the volume of mobilised resources in 2016 increased by 7%.

In accordance with the strategic guidelines of the 2016-2020 Business Plan, resources were directed towards the engines of the country’s economic growth:

• Government, Public Administration, and Infrastructure: CDP was once again a key partner in supporting Local Authorities, with resources mobilised and managed totalling €5.2 billion, used to finance investments of Local Governments and the execution of infrastructure projects in the transportation and telecommunications sectors.
• Enterprises: CDP substantially contributed to the economic recovery, supporting the Italian productive system with about €5.2 billion mobilised, playing an important role in supporting the economy, contributing to the reconstruction in areas impacted by natural disasters and investing in research, development and innovation.
• International expansion: The total amount of resources mobilised and managed in 2016 to support the international expansion of Italian firms came to about €4.9 billion.
• Real Estate: The sector saw investments of around €100 million, with a particular focus on supporting social housing activities.

CDP: performance and financial position for 2016

Assets totalled about €357.7 billion, up 3.7% on the previous year:

• The stock of Liquidity amounted to €161.8 billion, about 4.1%decrease if compared to 2015.
• The stock of Loans to customers and banks was virtually unchanged at €103 billion.
• Equity investments and shares totalled €32.6 billion, with an increase of 10.1% on the previous year, mainly reflecting the transfer of 35% stake in Poste Italiane.

Liabilities:

• Total Funding increased compared with 2015 at €331.8 billion (+2.7%), out of which €250.8 billion represented by postal funding.
• Net Equity amounts to €23.2 billion (+ €3.7 billion compared with 2015).

Net Interest Income amounted to about €2.4 billion, sharply up (+162%) on the previous year despite adverse interest rate conditions. The increase in Net Interest Income was mainly due to the introduction of significant managerial actions, aimed at optimizing the funding sources mix, improving the ALM (Asset and Liability Management) and increasing the efficiency in treasury and liquidity management, on the one side, and to the aligning of the Treasury account remuneration with market conditions.

Net Income came to about €1.7 billion, a strong increase on the €0.9 billion in 2015.

CDP Group: Performance and financial position for 2016

The CDP Group closed 2016 with Total Assets of €410.4 billion, (+ 2.9% compared with 2015).

Group net equity came to €35.7 billion, an increase on the €34.6 billion in 2015, out of which €22.5 billion pertaining to the parent company (€20.2 billion in 2015).

Net interest income nearly showed a fourfold increase if compared to 2015, with about €2.1 billion.

Group Net Income was about €1.1 billion (compared to a loss of €0.9 billion in 2015), due to the substantial increase in the Net Income of the parent company.

Extraordinary operations of strategic importance for the country

First and foremost, in 2016 CDP’s capital was strengthened by about €3 billion, through the transfer of 35% stake of Poste Italiane from the Ministry of Economy and Finance. In addition to the relief of more resources to support to the country’s economic system, the transfer will strengthen the relationship between CDP and Poste Italiane, creating the conditions to explore and exploit the industrial synergies between two of the country’s main financial operators.

Extraordinary operations of strategic importance to the country, in which the CDP Group was involved in 2016, included:

• Investment in the Atlante I and II funds, which were created to foster the recovery of the Italian banking system, by providing support in recapitalisation operations and in facilitating the disposal of non-performing loans;
  • Participation in the bid process for the sale of ILVA S.p.A. and other Group companies;
  • The transfer to Poste Italiane of an equity stake in FSIA, the holding company of SIA, a leader in the electronic money, payment systems and network services, carried out by FSI Investimenti;
  • The sale of the interest in Metroweb held by FSI Investimenti to Open Fiber, a company formed in December 2015 with the aim of installing, supplying and operating high-speed fibre optic electronic communications networks throughout Italy;
  • The partial and proportional demerger of SNAM, involving the interest in Italgas Reti as part of the listing of Italgas. The industrial and corporate reorganisation of SNAM was intended to separate the activities related to municipal gas distribution in Italy, the area in which the Italgas Group operates, from gas transport, regasification and storage operations, in Italy and abroad.

The statutory audit of the data has not been completed. The reclassified financial statements here enclosed are not subject to statutory audit.

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.