Financial position

Reclassified consolidated statement of financial position(14)

Due to the proportional partial demerger of Autogrill S.p.A. to World Duty Free S.p.A. with effect from 1 October 2013, the assets and liabilities of the Travel Retail & Duty Free business are not included in the consolidated statement of financial position at 31 December 2013 and at 31 December 2012 are shown separately on the line “Discontinued operations (demerger)” in accordance with IFRS 5 - Non-current Assets Held for Sale and Discontinued Operations.

Change
(€m)31.12.201331.12.2012 *2012At constant exchange rates
Intangible assets 811.1 845.0 (33.9) (10.5)
Property, plants and equipment 782.5 870.7 (88.2) (65.7)
Financial assets 22.0 14.5 7.5 8.3
A)   Non-current assets 1,615.6 1,730.2 (114.6) (67.9)
Inventories 106.1 1.14.6 (8.5) (6.5)
Trade receivables 46.4 46.6 (0.3) 1.1
Other receivables 191.1 210.7 (19.6) (16.7)
Trade payables (396.2) (440.1) 43.9 39.0
Other payables (2.875) (351.9) 64.5 56.5
B)   Working capital (340.0) (420.0) 80.0 73.4
C)  Invested capital, less current liabilities 1,275.6 1,310.2 (34.6) 5.5
D)  Other non-current non- financial assets and liabilities (158.1) (161.2) 3.1 0.7
E)   Invested capital from continuing operations 1,117.5 1,149.0 (31.5) 6.2
F)   Invested capital from discontinued operations (demerger) (0.0) 598.2 (598.2) (604.6)
G) Net invested capital 1,117.5 1,747.2 (629.7) (598.3)
Equity attributable to the owners of the parent 413.6 787.7 (374.1) (364.8)
Equity attributable
to non-controlling interests
31.2 26.4 4.8 4.6
H)  Equity 444.8 814.0 (369.3) (360.2)
Non-current financial liabilities 748.2 891.9 (143.7) (163.2)
Non-current financial assets (11.1) (83.9) 72.7 72.7
I)     Non- current financial indebtedness 737.0 808.0 (71.0) (90.5)
Current financial liabilities 128.2 277.9 (149.7) (149.7)
Cash and cash equivalents and current financial assets (192.5) (152.7) (39.7) (45.3)
L)    Current net financial indebtedness (64.3) 125.2 (189.4) (195.0)
Net financial position (I + L) 672.7 933.2 (260.4) (238.1)
M)  Total as in G) 1,117.5 1,747.2 (629.7) (598.3)

* Figures have been adjusted since their original publication due to the application of the accounting standards IFRS 5 and IAS 19 revised as described in para 2.2.1 of the Notes

Net invested capital at 31 December 2013 from continuing operations came to € 1,117.5m, down from € 1,149.0m the previous year, due chiefly to the change in the euro/dollar exchange rate.

(€m)20132012
EBITDA 314.0 327.6
Change in net working capital (87.9) (17.3)
Other items (1.9) (2.8)
Cash flows from operating activities 224.2 307.4
Tax (paid)/refund (33.9) (34.8)
Net interest paid (42.1) (42.0)
Net cash flows from operating activities 148.1 230.7
Net Capex paid (184.9) (250.8)
Vietnam acquisition (16.0) -
Disposal of US Retail division 74.1 -
Free operating cash flow 21.4 (20.2)

In 2013 the Group generated free operating cash flow of € 21.4m, reversing the negative € 20.2m reported the previous year.

Two non-recurring events contributed to this result: the receipt of € 74.1m from the sale to World Duty Free Group of the majority 15 of the Travel Retail operations managed by HMSHost in North America, and the outlay of € 16.0m for the Group’s debut in Vietnam, through the acquisition of a controlling interest in a company that manages Food & Beverage outlets at domestic and international airports.

Net of those transactions, free operating cash flow for 2013 would be a negative € 36.7m. This is explained mainly by the variation in net working capital, which in 2013 absorbed € 87.9m in cash (€ 17.3m the previous year), due especially to the decreased turnover in Italy and – to a lesser degree – the payment during the year of long-term incentives to managers.

Negative cash flow from investing activities (net of disposals) decreased to € 184.9m, from € 250.8m in 2012.

Capital expenditure

Net capital expenditure 16 in 2013, mostly concerning the airport channel, came to € 162.6m (€ 252.6m the previous year). The decrease reflects the high concentration of investments in 2012, due to the acquisition of several new contracts at US airports.

Net financial position

The net financial position at 31 December 2013 was € 672.7m, down from € 933.2m the previous year.

Change in net financial position (€m)

Change in net financial position

The main reason for the decrease in net financial indebtedness is the receipt of an extraordinary dividend of € 220m (paid by World Duty Free Group S.A.U. to Autogrill S.p.A. in relation to the demerger), as well as the sale of the North American travel retail operations to the World Duty Free Group for € 74.1m. Net cash flow from operating activities was completely absorbed by capital expenditure.

The fair value loss on interest rate hedging derivatives at 31 December 2013 was €–1.3m, compared with a fair value loss of € 3.2m at the close of 2012 (continuing operations).

At 31 December 2013, 52% of net financial indebtedness was denominated in US dollars and the rest in euros, while 62% was fixed-rate, including by way of interest rate swaps. In 2013 the weighted average cost of debt was 5.4%, down from 6.5% the previous year, thanks to the smaller proportion of fixed-rate loans. Debt consists mainly of committed non-current credit lines from banks and of long-term bonds (private placements). Loans had an average remaining life of four years and two months.

In 2013 the subsidiary HMSHost Corporation redeemed bonds issued in 2003 for $ 266m, and subscribed to new bond loans for $ 150m maturing in 2023 and for $ 200m maturing from September 2020 to September 2025. Since 22 April 2013, further to agreements with its lenders, Autogrill S.p.A. has no longer been guarantor of the bonds issued by HMSHost Corporation. The subsidiary has also obtained a new revolving credit facility of $ 300m maturing in March 2016, which is likewise not guaranteed by Autogrill S.p.A.

The Group’s loan contracts and bond loans require it to uphold certain financial ratios. At 31 December 2013 all of these were amply satisfied.

14. The figures in the reclassified consolidated statement of financial position are directly derived from the consolidated financial statements and notes, with the exception of “other receivables” and “other non-current non-financial assets and liabilities” which include deferred tax assets and liabilities (these are shown indistinctly under non-current assets in the consolidated statement of financial position)