|Net financial position (€/mln)||30 June 2018||30 June 2017||31 December 2017|
|Cash and cash equivalents||26.7||60.4||66.6|
|Assets (liabilities) from derivative instruments||(0.6)||(0.9)||(0.3)|
|Other financial assets (liabilities)||1.2||(4.4)||(10.0)|
|Loans (short and medium/long term)||(265.7)||(339.5)||(245.4)|
|Net financial position||(238.4)||(284.4)||(189.2)|
In December 2017, the Mondadori Group renegotiated the existing committed credit lines, underwriting a new amortizing loan agreement with a pool of major banks (Banca Popolare di Milano, Intesa Sanpaolo, UniCredit) for a total of 450 million euro, coming to maturity in December 2022. The agreement sets improved financial conditions in terms of interest rate and commissions from the previous agreement. The initial margin for the Term Loan line is 120 bps, with a reduction of about 130 bps from the cost of the previous loan. Additionally, the rate may vary, on an annual basis, from a low of 95 bps to a high of 200 bps, depending on the debt/EBITDA ratio.
Since 2009 the Mondadori Group has held no bonded loans and its debt is financed through the use of medium-long term credit lines.
The overall credit lines available to the Group at 30 June 2018, amount to a total of €654.1 million, of which €450.0 million committed, the latter unchanged with respect to 31 December 2017.
The Group’s short-term loans, amounting to €204.1 million, of which €20.1 million had been drawn down at 30 June, comprise overdraft credit lines on current accounts, advances subject to collection and “hot money” flows.
At 30 June 2018, the €450.0 million pool consisted of:
|(Euro/millions)||Bank pool||of which:|
with interest rate hedge
|(1) Term Loan A||150.0||–||100.0|
|(2) Term Loan B||100.0||–||75.0|
|(4) Acquisition Line C||100.0||100.0||–|
|(1) Term Loan A||€ 15.0 mln|
|€ 17.5 mln|
|€ 22.5 mln|
|€ 27.5 mln|
| € 67.5 mln|
|(2) Term Loan B||a) bullet 30/6 or|
b) in the event of an extension for Mondadori, € 5.0 mln in December
€ 5.0 mln in December
€ 7.5 mln in December
€ 82.5 mln in December
|(3) RCF||–||–||–||bullet loan, coming to maturity in December|
|(4) Acquisition Line C||–||–||–||bullet loan, coming to maturity in December|
In the last twelve months the Group’s net financial position has improved by approximately €46 million, with a consequent decrease in net financial debt to €238.4 million compared to the €284.4 million recorded at June 30, 2017.
|NFP beginning of period||(284.4)||(263.6)|
|Change in NWC + provision||(8.7)||(4.2)|
|Cash flow from operations||80.3||92.2|
|Cash flow from ordinary operations||62.1||(68.7)|
|Extraordinary tax amounts / prior years||0.3||6.8|
|Asset acquisition / disposal||(5.0)||12.7|
|Cash flow from extraordinary operations||(16.0)||5.7|
|Total cash flow||46.0||74.4|
|NFP end of period||(238.4)||(189.2)|
The cash generation of the last 12 months is divided into the following components:
- ordinary cash flow came to €62.1 million, of which €80.3 million from operating activities, after deduction of €15.4 million in taxes and financial charges, and the management of investments in associates. The performance of the operating cash flow is due to the income management net of non-ordinary items, positive for €112.5 million, mitigated by the investments made for about €20 million and by a net working capital (including provisions), which absorbs approximately €9 million, relating to magazine areas which, in the presence of a continuous contraction in revenues and a negative CCN structure, absorbed working capital;
- extraordinary cash flow came to -€16 million and included €11.4 million in restructuring costs, the financial outlays relating to the sale of Inthera in May 2018, as well as a number of small acquisitions (including Direct Channel) in the Magazines Italy area.