THE RESULTS CONFIRM CDP'S GROWING COMMITMENT TO SUPPORTING THE LOCAL AREA AND ITS STRENGTHENED ECONOMIC AND FINANCIAL SOLIDITY
The Chairman of Cassa Depositi e Prestiti, Giovanni Gorno Tempini, commented: "In a year marked by significant difficulties, we have achieved important results that have seen the Cassa Depositi e Prestiti Group strengthen its commitment to innovation and the competitiveness of businesses, infrastructure and the local area and promote the emergence of European champions in strategic sectors of the national economy, achieving the objectives set out in the Business Plan. The strength of our balance sheet, together with the confidence of postal savers, has allowed us to increase our role as the driving force behind the country's sustainable development, with a significant impact at an economic, social and environmental level. The support provided by the Ministry of the Economy and Finance and the bank Foundations has been fundamental in allowing us to quickly respond to the emergency caused by the pandemic and to lay the foundations for relaunching Italy".
The Chief Executive Officer of Cassa Depositi e Prestiti, Fabrizio Palermo, stated: "The year just ended saw CDP's great commitment materialise through numerous initiatives to support the Italian economy. The Group provided 39 billion euro during the critical stage of the pandemic emergency, providing support to over 100,000 businesses and 50 infrastructure projects through a technical and financial advisory service for local authorities. These results were made possible by the growth in postal savings, which reached 275 billion euro, and by new issues in the financial markets, where Italy's leadership in sustainable finance was consolidated with issues of 2.5 billion euro inspired by ESG criteria. Management indicators are increasing, with profits reaching 2.8 billion euro, testifying to the effectiveness of the new business model and management efficiency. On the strength of these results, which have been achieved thanks to the hard work and skills of the people of the CDP Group, we are renewing our commitment to the country's economic recovery".
Rome, 31 March 2021 - The Board of Directors of Cassa Depositi e Prestiti Spa (CDP), chaired by Giovanni Gorno Tempini, approved the draft separate financial statements and the consolidated financial statements at 31 December 2020, the 2020 consolidated non-financial statement of the CDP Group including the first integrated sustainability report. The draft Financial Statements, presented by the Chief Executive Officer Fabrizio Palermo, will be submitted for approval to the Shareholders’ Meeting, which will be called by the Board of Directors.
Key financial statement results
The 2020 financial results mark the end of a year of growth in terms of its income statement, balance sheet and cash flow figures, as well as its commitment to support Italian economy.
In terms of results, it is worth noting the growth in postal savings, which reached a record 275 billion euro in net funding not seen since 2013, and the net income reported by CDP S.p.A., which improved further to 2.8 billion euro.
At Group level, considering the perimeter of companies subject to Management and Coordination, earnings before tax stood at 2.5 billion euro, up significantly compared to 2019 (+25%). At a consolidated level, including the other investee companies (including Eni, which had an impact of -2.5 billion euro), net income stood at 1.2 billion euro.
In 2020, around 22 billion euro in new lending were granted by CDP S.p.A. and around 39 billion euro at the Group level to businesses, infrastructure, public administration and international cooperation, which grew significantly, partly in response to the COVID-19 emergency.
For further details on the operating results, financial position, and cash flows, please refer to the section "Financial statement results".
2019-21 Business Plan Results
Two years after the launch of the Plan, CDP ends 2020 with a completely new business and operating model, enhanced economic and financial solidity and with sustainability fully integrated into its operations.
Over the past two years, CDP has revolutionised its role, transforming itself (a) from a lender to a business partner, (b) from a lender to a promoter of local/infrastructure development and an all-round partner of the public administration, (c) from a shareholder to a manager of strategic equity investments for development and (d) from a manager of public resources to an Italian institution for development cooperation.
This transformation was accompanied by a profound revision of its operating model in terms of local presence, human capital, work models and European/international positioning.
At the same time, CDP strengthened its financial soundness, closing 2020 with a growing bottom line and a stronger balance sheet and financial position, and has fully integrated sustainability into its operations.
The Business Model
The business model has evolved along the four macro-directives of the Business Plan: (i) Enterprise, (ii) Infrastructures, Public Sector & Territorial Development, (iii) Strategic Equity Investments and (iv) International Cooperation.
CDP transformed itself from a lender to a business partner, reaching out to over 100,000 businesses (compared with 20,000 in the previous three-year period and the target of 60,000 in the Plan), 40% of which in the south of Italy. This was accomplished through:
Infrastructures, Public Sector & Territorial Development
CDP has gone from being a lender to a promoter of territorial/infrastructure development and an all-round partner of the public administration through:
Strategic Equity Investments
CDP has transformed itself from a passive shareholder into a manager of strategic equity investments for development, through:
CDP has transformed itself into Italy’s Financial Institution for Development Cooperation, through:
CDP has transformed its operating model to bring it into line with market best practices and those of other national promotional institutions, focusing on five areas:
Operating, financial and balance sheet performance
In addition to the results achieved in its promotional role, in recent years CDP has strengthened its operating performance, capital soundness and financial structure:
The first Integrated Report of the CDP Group has been approved, highlighting the new role that sustainability will play in the institution's business and operating model to help achieve the UN's 2030 goals:
Financial statement results
Regarding the income statement, the Parent Company reported net income of 2.8 billion euro, an increase on the previous year.
The increase is attributable to the improvement in the spread between interest-bearing assets and liabilities and the interest rate risk management strategies implemented which more than offset the reduction in dividends from investee companies, the write-down of a large credit exposure (prior to the COVID-19 crisis) and the absence of non-recurring positive items in 2019. Specifically:
As regards the balance sheet, total assets amounted to 410 billion euro (+6% on 2019), mainly consisting of cash and cash equivalents and other treasury investments for 183 billion euro, loans for 107 billion euro, debt securities for 74 billion euro and equity investments and funds for 35.6 billion euro. Specifically:
Funding was 378 billion euro, up 6% from the figure recorded at the end of 2019. Specifically:
Equity amounted to 25.5 billion euro, up +2% on 2019 thanks to solid financial results which more than offset the dividends distributed during the year.
Regarding promotional activities, the resources deployed by CDP to businesses, Infrastructures, Public Sector & Territorial Development, and international cooperation came to 21.7 billion euro, an increase of 2% over 2019.
With respect to Enterprises, 13.5 billion euro was lent to support the growth and development plans of Italian enterprises, including through the launch of extraordinary initiatives in response to the COVID-19 emergency. These include:
Regarding Infrastructures, Public Sector & Territorial Development, 7.9 billion euro was lent and support activities for institutions and infrastructures were expanded (through advisory and promotion) and initiatives were set in motion in response to the COVID-19 emergency. These include:
Regarding International Cooperation, 0.4 billion euro was lent by leveraging both own and third-party resources and also refocusing efforts in response to the COVID-19 emergency. These include:
The CDP Group's consolidated financial statements include companies over which the Parent Company CDP does not exercise management and coordination (including major listed investee companies such as Eni, Poste Italiane, Snam, Terna, Italgas, Fincantieri, Saipem and WeBuild). To provide an overview of the results of CDP S.p.A. and only those of companies subject to management and coordination (the "CDP Group"), a separate consolidated operating segments report has been prepared.
The CDP Group's8 pre-tax net income for the year amounted to 2.5 billion euro, up significantly from 2019 (2.0 billion euro, +25%), largely as a result of the positive results of the Parent Company.
Including those companies in the scope of consolidation which are not subject to management and coordination, consolidated net income amounted to 1.2 billion euro, compared to 3.4 billion euro in 2019. The decrease is mainly attributable to the equity valuation of Eni (-2.5 billion euro in 2020).
Total consolidated assets amounted to 512 billion euro, up by 14% (63 billion euro) compared to the figure recorded at the end of the previous financial year. The main changes relate to the cash and cash equivalents, loans and receivables and securities.
Total funding stood at 417 billion euro, up by 8.1% on the end of 2019. More specifically, funding from banks grew by 25 billion euro, particularly institutional funding, while bond funding increased by 3.6%, primarily driven by new issues from CDP, Terna, and Italgas.
Consolidated equity amounted to 33.7 billion euro, of which 20.4 billion euro refers to the Group’s equity.
During the year the CDP Group granted loans9 for 38.6 billion euro, an increase of 4.0 billion euro over 2019.
Please note that the Independent Auditors are completing the audit of the separate financial statements and the consolidated financial statements as at 31 December 2020. 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, Pier Francesco Ragni 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 2020 Annual Financial Report, together with the certification pursuant to Article 154-bis, paragraph 5, of the Consolidated Law on Finance and the Independent Auditors and Board of Statutory Auditors’ Reports 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.
1 In line with the 2019-21 Business Plan, new lending does not include volumes related to the Garanzia Italia and Green New Deal transactions managed by SACE and SACE BT.
2 In line with the 2019-2021 Business Plan, new lending does not include SACE volumes related to the Garanzia Italia and Green New Deal transactions nor SACE BT volumes.
3 The CDP Group consists of the parent company and the subsidiaries subject to management and coordination as described in the consolidated information on Operating segments. The result for 2019 has been restated for comparability by excluding the SACE Group, which is no longer subject to management and coordination following the publication of Decree Law 23/2020.
4This includes the Ancona and Bari offices, which will open in February and March 2021 respectively.
5This includes the Ancona and Bari offices, which will open in February and March 2021 respectively,
6 Agreements signed in February 2021 with the establishment of the JV.
7 Agreements signed in 2020 and the transaction finalised in January 2021 with the acquisition of an equity investment in RenovIT (previously named Snam4Efficiency).
8 The CDP Group consists of the Parent Company and the subsidiaries subject to management and coordination as described in the consolidated information on Operating segments. The result for 2019 has been restated for comparability by excluding the SACE Group, which is no longer subject to management and coordination following the publication of Decree Law 23/2020.
9 In line with the 2019-2021 Business Plan, new lending does not include SACE volumes related to the Garanzia Italia and Green New Deal transactions nor SACE BT volumes.