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ASTALDI: THE BOARD OF DIRECTORS APPROVES CONSOLIDATED FIGURES AT 30 JUNE 2020 WHICH CONFIRM THE RESTART OF BUSINESS ACTIVITIES ALTHOUGH PRODUCTION SLOWDOWNS DUE TO COVID-19 EFFECT

  • Management Consolidated Figures at 30 June 2020 related to the Scope of Continuity1:
    • Order Backlog: EUR 7.7 billion2, of which EUR 6.4 billion for construction activities and EUR 1.3 billion for O&M contracts
    • New Orders for the reporting period: EUR 442 million
    • Total Revenue: approximately EUR 649 million
    • Adjusted EBITDA: EUR 54 million3
    • EBITDA: EUR 42 million
    • Adjusted EBIT: approximately EUR 16 million3
    • EBIT: approximately EUR 3.4 million
    • Net Result: negative for approximately EUR 40 million
    • Net Financial Debt: negative for EUR 2,369 million (before restructuring of debt exposure)4
    • Net Financial Debt (after restructuring of debt exposure): positive for EUR 170 million5
  • "Scope of Continuity" means the set of Engineering, Procurement and Construction contracts, O&M activities and some minor concessions, identified as functional to the continuity of activities within the Plan underlying the Composition Proposal. Figures not subject to auditing.
    2 Order backlog related to construction and O&M activities only referable to the Scope of Continuity, as defined in the Composition Plan.
    3 EBITDA and Adjusted EBIT calculated excluding the non‐recurring costs related to the Composition procedure for the half year in question.
    4 The Net Financial Debt, as represented, does not include the effects of the restructuring of debt exposure resulting from the approval of the Composition that took place with decree of the Court of Rome published on 17 July 2020.
    5 The pro‐forma indicative estimate, as represented, is functional to represent, with regard to the Net Financial Debt at 30 June 2020, according to evaluation criteria consistent with historical data and in compliance with the reference legislation, the main effects of the equity strengthening transactions envisaged in the Composition Proposal and of the establishment of the Liquidation Perimeter and related restructuring of debt exposure, after payment of privileged and pre‐deductible debts. It should be noted that the pro‐forma information represents a simulation provided only for describing the possible effects related to the afore‐mentioned transactions and since they are constructed to retroactively reflect the effects of following transactions, despite the observance of the commonly‐accepted rules and the use of reasonable assumptions, shows the limits related to their intrinsic nature. The pro‐forma information does not represent in any form a forecast on the future trend of the Company's equity, financial and economic position and cash flows, and therefore it should not be used in this sense.

1

  • 2020 Management Guidelines related to the Scope of Continuity reviewed to take into account Covid-19impacts that are currently foreseeable:
    • Total revenue: approximately EUR 1.5 billion;
    • Adjusted EBITDA6: > 5% ;
    • Adjusted EBIT: > 3%;
    • Net Financial Debt (after restructuring of debt exposure): positive for more than EUR 300 million.

***

Rome, 16 September 2020 - The Board of Directors of Astaldi S.p.A. met and approved the consolidated figures at 30 June 2020 and took note of the Management Guidelines related to 2020 for the Group's Scope of Continuity.

Consolidated Figures at 30 June 2020

The Consolidated Figures at 30 June 2020 confirm the restart of business activities referred to the so-called "Scope of Continuity" following the Company's return to performing status, but are also affected by the slowdown of production activities recorded (i) for the effect of the COVID-19 pandemic containment measures, which, for some projects (in particular in Italy, but also abroad), have resulted in construction site stops and/or slowdowns linked to the containment procedures adopted and (ii)for the delay in issuance of the guarantees required for the start or continuation of some contracts . The mitigation actions taken by the Company have made it possible to contain these effects and, where necessary, negotiations are underway with the relevant Customers aimed at guaranteeing reimbursement of the additional costs consequently recorded and/or a redefinition of the delivery terms to offset the pandemic-related delays. To date, all the activities have been restarted, except for specific situations in Chile and India.

Income statement main figures

June

Of which

Of which Continuity

2020

Composition-related

(management view*)

Consolidated

effects

Astaldi Group

(management view*)

(A-B)

(figures shown in millions of Euro)

(A)

(B)

Total Revenue

656.8

7.9

648.9

Adjusted EBITDA **

78.6

24.2

54.4

%

12.0%

8.4%

EBITDA

66.3

24.2

42.1

%

10.1%

6.5%

Adjusted EBIT **

17.0

1.3

15.7

%

2.6%

2.4%

EBIT

4.7

1.3

3.4

%

0.7%

0.5%

  • Figures referring to the Scope of Continuity of Astaldi Group's activities only (as identified by the Composition Plan and Proposal and detailed hereinafter. Figures not subject to auditing.
  • Adjusted EBITDA and adjusted EBIT at 30 June 2020 are calculated excluding the costs related to the Composition procedure from EBITDA and EBIT, respectively, that for HY1 2020 amount to EUR 12.3 million.
  • Adjusted EBIT calculated excluding the non‐recurring costs related to the Composition procedure for the half year in question from EBIT.

2

For HY1 2020, total revenue amounted to EUR 656.8 million (EUR 648.9 million if referring to the Scope of Continuity

  • management figure not subject to auditing), 33% of which produced in Italy and 67% abroad (mainly in Europe and America).
    EBITDA amounts to EUR 66.3 million, with an EBITDA margin of 10.1% (EUR 42.1 million and 6.5% if referring to the Scope of Continuity only, respectively). Excluding the procedure costs amounting to EUR 12.3 million for the reporting period according to the provisions contained in the Composition Proposal, adjusted EBITDA amounted to EUR 78.6 million, with an adjusted EBITDA margin of 12% (EUR 54.4 million and 8.4% if referring to the Scope of Continuity, respectively). EBITDA included EUR 26.1 million of shares of profits of joint ventures and associates referable, in particular, to the Turkish company Otoyol Yatirim ve Isletme A.Ş. (Gebze-Orhangazi-Izmir Motorway, for EUR 22.5 million).

EBIT amounted to EUR 4.7 million, with an EBIT margin of 0.7% (EUR 3.4 million and 0.5% if referring to the Scope of Continuity only, respectively). Excluding the above-mentioned effect of the procedure costs, adjusted EBIT totalled EUR 17 million, with an adjusted EBIT margin of 2.6% (EUR 15.7 million and 2.4% if referring to the Scope of Continuity, respectively).

Financial management generated net financial expense of EUR 49.8 million (EUR 32.2 million if referring to the Scope of Continuity, respectively). This figure related to the reporting period reflects the effects of a cost of funding (Interim Finance) and guarantees weighed down by the situation of financial tension deriving from the composition with creditors, as well as the negative effect due to exchange rate difference. Following Webuild's Capital Increase, as also defined in the Composition Proposal, the Interim Finance will be fully repaid by using a 200-million Revolving Credit Facility (contract currently under negotiation) with financial conditions more consistent with cost of debt of companies returning to performing status and operating in the Group's reference sector. Similarly, the cost of guarantees is also expected to decrease. Therefore, there will be overall economic benefits in terms of lower financial charges, which can already be partially enjoyed in the current year, and in any case in the following years.

Tax expense for the reporting period is estimated at EUR 4.5 million. The figure for discontinued operations shows a net expense of EUR 31.8 million (EUR 4 million if referring to the Scope of Continuity). The financial statement figure includes the restatement effects within the discontinued operations of income items attributable to the areas/projects abandoned/closing while implementing the Composition Plan and Proposal (i.e., Russia, Honduras, other minor countries).

It resulted in a loss for the reporting period of EUR 81.4 million, which translates into a Group's net loss of EUR 83.8 million (loss of EUR 37.3 million and EUR 39.7 million if referring to the Scope of Continuity, respectively). It should be noted that with reference to the loss for the year, EUR 42.6 million had already been recognised with effects on Equity at 31 December 2019.

Main Income Statement figures

The main figures of Astaldi Group's Reclassified Consolidated Income Statement at 30 June 2020 are reported below.

3

(figures shown in thousands of Euro)

30/06/2020

31/12/2019

Change

TOTAL Non-current Assets (A)

1,053,218

1,067,652

(14,434)

Operating Working Capital (B)

(108,203)

(145,771)

37,568

Total Provisions (C)

(150,854)

(160,342)

9,488

Net Invested Capital (D) = (A) + (B) + (C)

794,162

761,540

32,622

Net loans and borrowings (E)

(2,686,721)

(2,436,959)

(249,762)

Total loans and borrowings (F)

(2,368,735)

(2,301,628)

(67,107)

Equity (G) = (D) - (F)

(1,574,574)

(1,540,088)

(34,486)

(*) Reconciliation notes to the Condensed Interim Consolidated Financial Statements at 30 June 2020.

Note: The figures at 30 June 2020 reported in the statement do not take into account the effect of restructuring of debt exposure, insofar Astaldi's Composition approval decree was issued on 17 July 2020

At 30 June 2020, net invested capital stood at EUR 794.2 million, showing an improvement of EUR 32.6 million compared to 31 December 2019. Its components recorded dynamics consistent with the progress of the Composition procedure and the start of the implementation phase of the Composition Plan and Proposal, as well as with the slowdown in production essentially linked to the pandemic. Total Non-current assets amounted to EUR 1,053.2 million, down by EUR 14.4 million compared to 31 December 2019.

Operating working capital is negative for EUR 108.2 million and shows a decrease of EUR 37.6 million compared to 31 December 2019. The working capital cycle, although still conditioned by the financial tension of the Composition, shows signs of a first turnaround and resumption of industrial activities.

At 30 June 2020, equity was negative and essentially reflects dynamics linked to the Composition, amounting to EUR 1,574.6 million (down by EUR 34.5 million compared to 31 December 2019), against total loans and borrowings showing a total debt of EUR 2,368.7 million (EUR 2,301.6 million at 31 December 2019). The figure for the reporting period does still not include the effects of restructuring of debt exposure, insofar the composition was approved on 17 July 2020.

Net Financial Debt

At 30 June 2020, total net financial debt amounted to EUR 2.37 billion, showing a cash use of EUR 67.1 million compared to 31 December 2019: this figure for the reporting period was affected by the slowdown in production recorded as a result of the COVID-19 effect, highlighting at the same time a restoration of ordinary dynamics for the projects related to the Scope of Continuity. The figure for the reporting period does still not include the effects of restructuring of debt exposure, insofar the composition was approved on 17 July 2020.

Long-term financial debt essentially includes the effects of use during the half year in question of a final share (equal to EUR 63.9 million) of the Second Tranche of the Interim Finance (authorised by the Court of Rome, after the start of Astaldi's Composition, for supporting industrial operations, pending the approval that took place on 17 July 2020).

Order Backlog

At 30 June 2020, net of the assets included in the Liquidation Perimeter, the Group's Order Backlog amounted to EUR 7.7 billion, of which EUR 6.4 billion (83% of the total) for Construction activities and EUR 1.3 billion (17%) for

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Astaldi S.p.A. published this content on 16 September 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 September 2020 06:59:04 UTC