Press Release
ATLANTIA, BOARD APPROVES INTERIM REPORT FOR SIX MONTHS ENDED 30 JUNE 2022
- Revenue and EBITDA at €3.3bn and €2.1bn respectively, up 18% and 22% compared with H1 2021, after benefitting from upturns in motorway and airport traffic
- Net financial debt as of 30 June 2022 at €21.2bn (down €8.8bn compared with end of 2021), after proceeds of €8.2bn from sale of Autostrade per l'Italia ("ASPI")
- Improved outlook for 2022 with revenue and EBITDA expected to be at €6.8bn and €4.3bn and net financial debt at €21.5bn
- Standard & Poor's rating upgrade from BB to BB+, with stable outlook
- Sustainalytics ESG rating improves as Atlantia joins 100 top-rated companies
- Completed acquisition of 100% stake in Yunex Traffic, global leader in Intelligent Transportation Systems and Smart Mobility sector for an enterprise value of €950m
- Schema Alfa public tender offer: clearances in process of being issued by relevant authorities
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Highlights1
- Motorway traffic (up 17.9% vs 2021 and up 3.9% vs 2019), with recovery in all countries
- Airport traffic sees strong growth (up 295.2% vs 2021) though remains below pre-pandemic levels (down 38.4% vs 2019)
- Revenue at €3.3bn (up 18% vs 2021)
- EBITDA at €2.1bn (up 22% vs 2021)
- Consolidated profit at €6.1bn, contribution of ASPI equals to €5.8bn (with a capital gain of €5.3bn)
- Profit of the Group totals €0.2bn, excluding ASPI contribution and Profit attributable to non-controlling interests
- FFO at €1.3bn (up 13% vs 2021)
- Capex at €0.5bn (up 27% vs 2021)
- Net financial debt at €21.2bn (€30bn as at 31 December 2021)
Rome, 4 August 2022 - Today's meeting of the Board of Directors of Atlantia SpA, chaired by Ambassador Giampiero Massolo, has examined and approved the Interim Report for the six months ended 30 June 2022 ("H1 2022").
Improved outlook
Traffic figures for the first half of 2022 (motorway traffic up 3.9% and airport traffic down 38.4% compared with the figures for 2019) have confirmed the return of motorway traffic to pre-pandemic levels, whilst airport traffic has beaten expectations since the beginning of the year, particularly from the spring onwards. The recovery has continued in July 2022. Assuming that current levels of traffic are maintained in the second part of the current year, we estimate that motorway traffic will increase by approximately 4% in 2022 and airport traffic will be approximately 30% below 2019 levels.
As a result, we expect consolidated revenue to total approximately €6.8bn in 2022, with the Group's EBITDA amounting to approximately €4.3bn, confirming improvement on 2021 results. EBITDA for 2021 benefitted from both the Government grant received by Aeroporti di Roma to cover losses due to Covid-19 (approximately €0.2bn), and the contribution from the Spanish companies, Acesa and Invicat, whose concessions expired in August 2021 (approximately €0.4bn). We also expect the Group to generate FFO of approximately €2.6bn and capex to total approximately €1.3bn.
Finally, we expect net financial debt to amount to approximately €21.5bn at the end of 2022, representing an improvement of €0.5bn compared with the guidance provided in the results announcement for the three months ended 31 March 2022. This primarily reflects an improvement in FFO after capex.
Yunex Traffic, consolidated from 30 June 2022, will also contribute to the full-year results.
Despite the above, the ongoing conflict in Ukraine, with its impact on the real economy, and uncertainty regarding the future of the health emergency caused by Covid-19, contribute to a degree of uncertainty surrounding the performance in the remainder of 2022, which might affect the above estimates.
The above estimates should be considered as forecasts of a purely indicative nature and based on the above assumptions. They will need to be updated based on future performance and, as such, do not constitute targets for the Group.
Implementation of the Company's sustainability roadmap will continue in 2022, carrying out the planned activities which will enable us to achieve the targets set for 2023. We intend to pay particular attention to energy efficiency and energy transition initiatives, as described in the Group's Climate Action Plan, approved by over 98% of shareholders in April 2022. The Plan targets the achievement of zero direct emissions by 2040.
- Excluding the contribution of the Autostrade per l'Italia group following its sale on 5 May 2022.
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Group performance
Reclassified consolidated Profit & Loss
€M | H1 2022 | H1 2021 | CHANGE | ||||||||
Restated* | |||||||||||
Absolute | % | ||||||||||
Motorway toll revenue | 2,540 | 2,267 | 273 | 12% | |||||||
Aviation revenue | 248 | 82 | 166 | n/s | |||||||
Other operating revenue | 502 | 440 | 62 | 14% | |||||||
Operating revenue | 3,290 | 2,789 | 501 | 18% | |||||||
Cost of materials and external services | -754 | -661 | -93 | 14% | |||||||
Staff costs | -420 | -393 | -27 | 7% | |||||||
Operating change in provisions | -21 | -14 | -7 | 50% | |||||||
Total operating costs | -1,195 | -1,068 | -127 | 12% | |||||||
EBITDA | 2,095 | 1,721 | 374 | 22% | |||||||
Depreciation, amortisation and impairment/(reversal) | -1,252 | -1,646 | 394 | -24% | |||||||
EBIT | 843 | 75 | 768 | n/s | |||||||
Financial expenses, net | -302 | -410 | 108 | -26% | |||||||
Profit on equity method participation | - | 3 | -3 | n/s | |||||||
EBT | 541 | -332 | 873 | n/s | |||||||
Income tax benefits/(expense) | -249 | 144 | -393 | n/s | |||||||
Profit/(Loss) from continuing operations | 292 | -188 | 480 | n/s | |||||||
Profit/(Loss) from discontinued operations | 5,840 | 201 | 5,639 | n/s | |||||||
Profit/(Loss) | 6,132 | 13 | 6,119 | n/s | |||||||
Profit/(Loss) attributable to non-controlling interests | 203 | -20 | 223 | n/s | |||||||
Profit/(Loss) attributable to owners of the parent | 5,929 | 33 | 5,896 | n/s |
* Restated following the application of ART Resolution 71/2019 to Autostrade per l'Italia.
Operating revenue for the first half of 2022 totals €3,290m, an increase of €501m (18%) compared with the first half of 2021 (€2,789m). This reflects:
- an increase of €273m in motorway toll revenue compared with the first half of 2021 (€2,267m). This primarily reflects traffic growth recorded by the Group's motorway operators (€484m) and the positive impact of exchange rate movements (€75m), after the reduction in revenue resulting from expiry in August 2021 of the concessions held by Acesa and Invicat and in March 2022 the concession held by Autopista del Sol (€283m);
- an increase of €166m in aviation revenue compared with the first half of 2021, reflecting traffic growth at Aeroporti di Roma (up 319.1%) and Aeroports de la Cote d'Azur (up 246.0%);
- an increase of €62m (14%) in other operating income compared with the first half of 2021, essentially due to the improved performance from airport concessionaires.
Operating costs of €1,195m are up €127m compared with the first half of 2021 (€1,068m). This reflects increases in the cost of operations and in staff costs due to airport and motorway traffic growth, after a reduction in costs linked to the above expiry of certain motorway concessions.
EBITDA of €2,095m is up €374m (22%) compared with the first half of 2021 (€1,721m).
Depreciation, amortisation and impairment/(reversal), totalling €1,252m, are down €394m compared with the first half of 2021 (€1,646m). This primarily reflects reduced amortisation of the concessions held by Acesa and Invicat following their expiry (€223m) and of those of the Group's Chilean companies following the revision of depreciation rate for 2021 (€99m).
EBIT of €843m is up €768m compared with the first half of 2021 (€75m).
Net financial expenses of €302m are down €108m compared with the first half of 2021 (€410m). This reflects increased income from derivative financial instruments (€139m), primarily linked to fair value gains for increase in interest rates, after an increase in financial expenses (€39m), primarily at the Abertis group's Brazilian companies due to a higher amount of debt and higher inflation, partially offset by a reduction in interest payable on bonds issued by HIT as a result of a lower weighted average cost of debt.
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The Profit from continuing operations for the first half 2022 amounts to €292m, of which €158m attributable to owners of the parent.
The profit from discontinued operations for the first half 2022 amounts to €5,840m (€201m in the first half of 2021) and includes the contribution from the ASPI group (€526m) and the gain resulting from the same group's deconsolidation (€5,314m, after taxes and transaction costs).
Profit totals €6,132m (€13m for the first half of 2021). Profit attributable to owners of the parent amounts to €5,929m (€33m in the first half of 2021) whilst profit attributable to non-controlling interests totals €203m (a loss of €20m for the first half of 2021).
Reclassified consolidated statement of financial position
€M | 30 JUNE 2022 | 31 DECEMBER 2021 | CHANGE | |||||
Restated* | ||||||||
Intangible assets (concession rights) | 35,462 | 35,127 | 335 | |||||
Goodwill | 9,341 | 8,441 | 900 | |||||
Property, plant and equipment and other intangible assets | 1,186 | 1,094 | 92 | |||||
Investments | 1,726 | 1,929 | -203 | |||||
Working capital (net of current provisions) | 200 | 888 | -688 | |||||
Provisions and commitments | -2,491 | -2,372 | -119 | |||||
Deferred tax liabilities, net | -4,946 | -4,842 | -104 | |||||
Other non-current assets and liabilities, net | -216 | -225 | 9 | |||||
Non-financial assets and liabilities held for sale | - | 11,308 | -11,308 | |||||
NET INVESTED CAPITAL | 40,262 | 51,348 | -11,086 | |||||
Equity attributable to owners of the parent | 13,756 | 8,140 | 5,616 | |||||
Equity attributable to non-controlling interests | 7,529 | 7,930 | -401 | |||||
Equity | 21,285 | 16,070 | 5,215 | |||||
Bond | 25,934 | 24,318 | 1,616 | |||||
Medium/long-term borrowings | 9,278 | 11,019 | -1,741 | |||||
Other financial liabilities | 1,189 | 1,852 | -663 | |||||
Cash and cash equivalents | -13,229 | -6,053 | -7,176 | |||||
Other financial assets | -1,992 | -1,653 | -339 | |||||
Net debt related to assets held for sale | - | 9,154 | -9,154 | |||||
Net financial debt | 21,180 | 38,637 | -17,457 | |||||
Financial assets (concession rights) | -2,203 | -3,359 | 1,156 | |||||
Net debt | 18,977 | 35,278 | -16,301 | |||||
EQUITY AND NET DEBT | 40,262 | 51,348 | -11,086 | |||||
*Restated as indicated in the explanatory notes
Net invested capital amounts to €40,262m (€51,348m as of 31 December 2021) and is down €11,086m compared with 31 December 2021, essentially due to the deconsolidation of the ASPI group (€11,308m), in addition to the reduction in working capital (net of current provisions) of €688m compared with 31 December 2021 for an increase in trade payables due by Telepass to ASPI following the latter's deconsolidation (€546m) and Aeroporti di Roma's collection of the grant from the "Covid aid fund" for airport operators (€219m). Goodwill increases following provisional recognition of €850m resulting from the acquisition of Yunex GmbH, and the impact of the stronger Mexican peso against the euro on goodwill attributable to the operator, RCO (€49m). Intangible assets (concession rights) increases compared with 31 December 2021 (€35,127m). This primarily reflects:
- the positive impact of exchange rate movements, totalling €1,167m, essentially attributable to the Brazilian and Mexican operators;
- investment totalling €365m;
4
- amortisation of €1,196m.
Net debt amounts to €18,977m as of 30 June 2022, a reduction of €16,301m compared with 31 December 2021 (€35,278 m). In addition to operating cash flow for the period net of capex, this reflects (i) proceeds from the sale of the investment in Autostrade per l'Italia (€8,199m), (ii) deconsolidation of the ASPI group's debt (€8,671m), (iii) the acquisition of Yunex (€931m).
As of 30 June 2022:
- the residual weighted average term to maturity of the Group's debt is five years and six months (five years and eight months as at 31 December 2021);
- fixed rate debt represents 77.6% of the total and, after taking into account interest rate hedges, 80.5% of the total;
- the weighted average cost of medium/long-term borrowings, including differentials on hedging instruments, is 4.3%.
As of 30 June 2022, Group companies have cash reserves of €19,611m, consisting of:
- €13,229m in cash and/or investments maturing in the short term, including €7,823m attributable to Atlantia;
- €6,382m in unused committed credit facilities, having an average residual drawdown period of approximately one year and eleven months.
Statement of changes in consolidated net debt
€M | H1 2022 | H1 2021 | ||||||
Restated* | ||||||||
Net debt at the beginning of the period | 35,278 | 39,276 | ||||||
FFO | -1,662 | -1,567 | ||||||
Capex | 833 | 876 | ||||||
Deconsolidation of the ASPI group's net debt | -8,385 | - | ||||||
Proceeds from the sale of the investment in ASPI | -8,199 | - | ||||||
Acquisition of the investment in Yunex | 931 | - | ||||||
Sale of the stake in Telepass | - | -1,056 | ||||||
Dividends to Atlantia's shareholders | 606 | - | ||||||
Dividends to non-controlling shareholders | 470 | 393 | ||||||
Change on hybrid equity instruments | 30 | -706 | ||||||
Change in fair value of hedging derivatives | -731 | -125 | ||||||
Effect of foreign exchange rate movements | 546 | 186 | ||||||
Change in net working capital and other changes | -740 | -345 | ||||||
(Increase)/Decrease in net debt for the period | -16,301 | -2,344 | ||||||
Net debt at the end of the period | 18,977 | 36,932 | ||||||
*Restated as indicated in the explanatory notes
Segment performance
Segments are identified based on the information provided to and analysed by Atlantia's Board of Directors, when assessing performance. Following its deconsolidation, ASPI group's contribution is limited to FFO and capex. Following the acquisition of Yunex group, a new segment has been introduced. Yunex group's assets and liabilities have been consolidated as at 30 June 2022 and contribution only regards net financial debt.
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Atlantia S.p.A. published this content on 04 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 August 2022 17:17:02 UTC.