The 2019 consolidated and separate Financial Statements and the first Sustainability Report of the CDP Group have been approved

Press release

The 2019 consolidated and separate Financial Statements and the first Sustainability Report of the CDP Group have been approved

CDP Group: loans granted for 34.6 billion euro to support the country’s economy.
Consolidated net income at 3.4 billion euro

  • Consolidated net income: 3.4 billion euro (of which 1.8 pertaining to the Parent Company)
  • Total consolidated assets: 448.7 billion euro
  • Consolidated equity: 36.1 billion euro (of which 23.6 billion euro of the Group)
  • Corporate: 24.9 billion euro with more than 20,000 companies served
  • Infrastructures, Public Sector & Territorial Development: 9.3 billion euro with more than 1,200 entities supported

CDP S.p.A.: granted loans rise to 21.4 billion euro. Best performance of postal funding in the last 5 years. Net income up at 2.7 billion euro

  • Net income: 2.7 billion euro
  • Total assets: 386 billion euro
  • Total funding: 356 billion euro, of which 265 billion euro from postal savings bonds and passbook savings accounts
  • Postal savings: CDP's best performance of net funding in the last 5 years (+3.4 billion euro), with significant growth in online sales (+1.2 billion euro compared to 2018)
  • Equity: 25 billion euro
  • Business Volumes: 21.4 billion euro


First year of the 2019-2021 Business Plan: new systemic activities were launched which will contribute to support the country's development

  • Development of the new operating nationwide network: in order to reinforce the support to businesses and public administrations in the territory, the first offices with integrated offering of the Group Companies were opened in Verona, Genoa and Naples, in addition to the first “Spazio CDP” desks at the offices of the banking foundations in Cagliari and Sassari.
  • Extension of the support to businesses with more than 20,000 companies served (with a target of 60,000 in the three-year period) also thanks to the launch of innovative financial instruments 
  • Increase in the number of direct lending transactions towards businesses to support domestic growth and innovation (+90% compared to 2018), backing an ever-broader portfolio of businesses and not just large ones
  • Widening of CDP’s scope of action to support infrastructure by combining financial support with advisory services for the Public Sector, aimed at supporting planning and design of the projects, the promotion of strategic initiatives, including through agreements/partnerships with market operators, in sectors such as the circular economy, renewable energy, digital and social areas
  • Reinforcement of the support to local administrations also by introducing new products to meet their needs, such as Liquidity advances to speed up payment of payables to suppliers
  • Widening of international cooperation leveraging CDP’s own resources for the first time and launch of the “Risparmio senza frontiere” service for citizens of Tunisia and Morocco residing in Italy
  • Execution of significant equity transactions and commitments, both directly and indirectly, in strategic sectors for the national economy, such as the investment in Salini Impregilo as part of “Progetto Italia” aimed at consolidating and developing a key sector for the country through the aggregation of several operators on the market; the increase of the stake in  Tim and the acquisition of control of Sia, in support of national strategic infrastructures. Acquisition of the majority share of Fondo Italiano d’Investimento Sgr to aid the growth of Private Equity market dedicated to SMEs and launch of CDP Venture Capital Sgr to bolster investments in start-ups.
  • Reinforcement of CDP's workforce, in line with other European Institutions, in order to meet new challenges: decrease in the average age, 32% of the new recruits are under 30 and 41% are women.
  • Approval of the Group's first Sustainability Report, which testifies how sustainability has become a key element of CDP's operations in line with the ambition to become the driving force of the country's sustainable development.


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Rome, 2 April 2020 h 3.57pm- 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 2019, the 2019 consolidated non-financial statement of the CDP Group and the first sustainability report, submitted by the Chief Executive Officer Fabrizio Palermo. The draft Financial Statements will be submitted for approval to the Shareholders’ Meeting, which will be called by the Board of Directors.
 

CDP Group

The results of the 2019 financial statements confirm the important action carried out by the Cassa Depositi e Prestiti Group to support the country’s economy and prove the management’s positive stewardship. The targets set by the Business Plan for 2019 were comfortably achieved, thus laying the foundations for the Group’s ever more central role to encourage Italy’s sustainable development, especially in this current period of emergency.

Consolidated net income amounted to 3.4 billion euro, of which 1.8 billion euro pertaining to the Parent Company.

As at 31 December 2019, the Group’s total assets stood at 448.7 billion euro. Consolidated equity amounted to 36.1 billion euro, of which 23.6 billion euro refers to the Group’s equity.

During the year the CDP Group granted loans for 34.6 billion euro.
 

CDP S.p.A.

Net income of the Parent Company was 2.7 billion euro, up 8% compared to 2018.

As at 31 December 2019, total assets amounted to 386 billion euro, mainly consisting of cash and cash equivalents for 171 billion euro, loans to customers and banks for 101 billion euro, debt securities for 71 billion euro and equity investments and funds for 34 billion euro.

With reference to liabilities, total funding amounted to 356 billion euro, of which 265 billion euro from postal savings bonds and passbook savings accounts (+3%). In particular, postal savings recorded CDP’s best performance of net funding in the last 5 years (+3.4 billion euro), also thanks to the restyling of the paper postal savings bonds and the strong growth in online sales (+1.2 billion euro compared to 2018) and in the number of online accounts (about 1 million compared to 300,000 at the end of 2018). In addition, with a view to diversifying funding sources, a series of new issues were made in 2019 to support CDP’s business activities, including:

  • the issue of a 750 million euro Social bond to finance building schools and urban redevelopment initiatives;
  • the issue of the first 1 billion Renminbi Panda bond (127 million euro) to support the growth of branches or subsidiaries of Italian companies in China;
  • the issue of CDP’s second retail bond for 1.5 billion euro reserved for individuals resident in Italy.

Equity totalled 25 billion euro (+1% compared to 2018)

New lending stood at 21.4 billion euro and was up compared to 2018 (approximately +30%)

2019-2021 Business Plan: support was intensified and systemic initiatives were started for the country’s growth and development
2019, the first year of the Business Plan, was marked by a profound change in the CDP Group’s operations, partly due to the organic activation of all of the planned lines of action.
 

CORPORATE

To support Enterprises - through loans, investments and guarantees offered by the Group - about 24.9 billion euro were injected, with more than 20,000 companies served.

2019 marked the development of the operating nationwide network: in order to reinforce the support to businesses and public administrations in the territory, the first offices with integrated offering of the Group Companies were opened in Verona, Genoa and Naples, in addition to the first “Spazio CDP” desks at the offices of the banking foundations in Cagliari and Sassari.

“Officina Italia", the permanent focus group consisting of about 150 companies representing the Italian entrepreneurial fabric, was launched to intercept the needs of companies and identify the most appropriate solutions, and other initiatives for discussion were launched throughout the country (Spazio Imprese).

Furthermore, the offer to companies was improved, starting with the Group’s first integrated product catalogue, and the service model was reviewed through the creation of a single commercial interface in CDP as a point of access for all Group solutions dedicated to the large enterprise segment.

The number of direct financing transactions towards businesses was increased to support growth and innovation (+90% compared to 2018), backing an ever-broader portfolio of businesses and not just large ones.

Activities to support the production sector were also extended to the supply chains through the signing of specific agreements: with Leonardo in the Defence and Aerospace sector, with Coldiretti and Filiera Italia in the Agri-food sector and with Fincantieri, Saipem and Ansaldo Energia for the Engineering supply chain. 

The focus on SME growth allowed new alternative finance instruments, such as Basket Bonds, to be developed. Two of them were launched during 2019: “Export Basket Bond Programme” for 500 million euro for the international expansion of companies and “ELITE Basket Bond Lombardia” for 100 million euro for the growth of companies in the region in order to finance the development plans of Lombard companies in Italy and abroad.

In order to facilitate the granting of liquidity to businesses in Southern Italy, a 500 million euro loan was signed in favour of an Italian bank that will use the funding to grant loans to companies with up to 3,000 employees operating in the area.
 

INFRASTRUCTURES, PUBLIC SECTOR & TERRITORIAL DEVELOPMENT

9.3 billion euro were invested in Infrastructures, Public Sector & Territorial Development. More than 1,200 entities were financed and the methods of action were widened to support infrastructure.

The support to infrastructure was widened with the introduction of a new Advisory unit to the Public Administration, aimed at the technical-administrative and financial support of the planning and design of the works. During 2019, CDP signed implementation protocols with Regions, Provinces and Municipalities interested in this assistance, mainly in the school building, healthcare and transport segments.

The Promotion of strategic initiatives (in the energy, environment, digital and social fields) was also introduced, including through agreements/partnership with market operators, with the aim of encouraging and accelerating the development of infrastructure and services in the territory. During the year, including in collaboration with investee companies, numerous projects were launched in relation to sustainability and circular economy, including the development of plants for the production of fuels starting from the treatment of the organic fraction of municipal waste and energy from renewable sources and tidal energy; moreover, a sponsorship contract was also signed to promote the establishment of the Italian School of Hospitality, aimed at supporting the competitiveness and innovation of companies engaged in tourism and hospitality in Italy.

In addition, the support to local administrations covered additional initiatives, including:

  • Cash advances, which made it possible to speed up the payment of payables to suppliers (an improvement of 21 days, or -35%, in the weighted average time taken to pay invoices received in the first half of 2019 );
  • the launch of the new Heating Account Investment Loan product, aimed at local bodies to encourage energy efficiency measures in the local area, anticipating the resources made available by Gestore dei Servizi Energetici (GSE);
  • the introduction of loans for the conversion of existing mortgage loans, which enabled the Regions joining in 2019 to save around 70 million euro in terms of lower interest paid during the amortisation period;
  • the activation of a loan renegotiation programme that saved the participating Municipalities that are the capitals of the Region or the setting for a metropolitan area about 400 million euro until 2023.
     

INTERNATIONAL COOPERATION

In 2019, CDP invested more than 400 million euro in supporting International Cooperation & Development Finance, leveraging its own resources for the first time. CDP has operated in accordance with national foreign policy guidelines through initiatives in developing countries and emerging economies, within the framework of the Sustainable Development Goals set out in the 2030 Agenda and with focus on developing new strategic markets.

Extended use of the resources of international institutional entities dedicated to development: agreements were finalised to access European and international financial resources to implement specific action plans promoted by the Italian economy. In particular:

  • the first guarantee agreement was finalised with the European Commission for the Archipelagos - One Platform for Africa - ONE4A initiative, in the context of the new European Union Plan for non-EU investments (External Investment Plan - “EIP”). The European resources acquired by CDP are aimed at promoting access to the capital market for SMEs with high growth potential, while increasing opportunities for exchange with Italian and European companies;
  • CDP’s process of accreditation to the Green Climate Fund (GCF) was completed. GCF is a multilateral fund established in 2010 by the United Nations and a major global instrument supporting projects to combat climate change in emerging economies and developing countries. Thanks to the accreditation, through CDP, Italy will have access to GCF resources for the first time, which can be used to support investment programmes aimed at mitigating and adapting to climate change.

The new initiatives are combined with traditional support in the field of International Cooperation, which envisages the management of public funds dedicated to development (Revolving Fund for International Cooperation & Development Finance and the Fund established by the Ministry of the Environment and Protection of the Land and Sea - MATTM), in relation to which over 200 million euro have been invested.
In addition, the new "Risparmio senza frontiere" financial service was launched for citizens of Tunisia and Morocco residing in Italy which allows the transfer of funds from Italian passbook savings accounts to passbook savings accounts from African countries. The aim is to encourage and increase the savings of foreign citizens residing in Italy, by encouraging funding geared towards cooperation, development and growth purposes that can be a source of funding for public utility projects, infrastructures, businesses and public administrations in the country of origin.


EQUITY AND FUNDS INVESTMENTS

During 2019, the Cassa Depositi e Prestiti Group also began reorganising its portfolio of strategic equity investments, as envisaged in the Business Plan. The transfers of Fincantieri and Saipem to CDP Industria were finalised.

The CDP Group supported the recovery and development plans of some companies in its portfolio, including: the acquisition of control of SIA,  to support the growth of a strategic payment infrastructure in Europe, the support to the Open Fiber investment plan for the development of fibre optics in Italy and the capital increase by FSI Investimenti in Kedrion as part of an operation to open up capital to a new investor.

In support of major Italian entities, through system operations, the investment in Salini Impregilo was also finalised as part of the so-called Progetto Italia, aiming to promote the consolidation and development of a key sector for the country through the aggregation of several operators active on the market. An additional share in the capital of Telecom Italia (currently equal to 9.9%) was purchased, aiming to support the value creation process launched by the company in a sector of primary interest for the country.

In addition, the majority of CDP Venture Capital SGR – Fondo Nazionale Innovazione (formerly Invitalia Ventures SGR) was acquired in order to strengthen CDP’s action in venture capital with an allocation of up to 1 billion euro. CDP has become the majority shareholder of Fondo Italiano d’Investimento SGR to continue development in private equity and private debt. In the latter area, the resources of the Innovazione & Sviluppo and Tech Growth Funds were increased, and a commitment as a cornerstone investor in the new Private Equity Italia Fund of Funds was made.
 

COMPANY WORKFORCE

In 2019, in order to meet CDP’s new activities and the objectives of the new Business Plan, the company’s workforce was increased. 32% of the new recruits are young people under 30 years of age and 41% are women. The new recruits are concentrated in business functions. This led to a decrease in the average age of employees from 44.3 to 42.6 years old.

 

Please note that the Independent Auditors are completing the audit of the separate financial statements and the consolidated financial statements as at 31 December 2019. 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 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 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.

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