|Net financial position (€/mln)||30 September 2018||30 September 2017||31 December 2017|
|Cash and cash equivalents||78.4||88.1||66.6|
|Assets (liabilities) from derivative instruments||(0.3)||(1.1)||(0.3)|
|Other financial assets (liabilities)||(7.0)||(5.2)||(10.0)|
|Loans (short and medium/long term)||(287.7)||(337.9)||(245.4)|
|FInancial assets held for sale||7.3||–||–|
|Net financial position||(209.3)||(256.0)||(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 September 2018 amounted to € 661.7 million, € 450.0 million of which committed, the latter unchanged versus 31 December 2017.
The Group’s short‐term loans, totaling € 211.7 million, € 42.9 million of which drawn down at 30 September, included overdraft credit lines on current accounts, advances subject to collection and “hot money” flows.
At 30 September, 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 improved by approximately € 46.7 million, with net financial debt decreasing to reach € 209.3 million versus € ‐256.0 million at 30 September 2017.
The Group’s net financial position and the relating LTM cash flow are detailed below:
|NFP beginning of period||(256.0)||(263.6)|
|Change in NWC + provision||(0.2)||(4.2)|
|Cash flow from operations||66.1||92.2|
|Management of investments in associates||(2.8)||(1.8)|
|Cash flow from ordinary operations of assets held for sale||11.3||–|
|Cash flow from ordinary operations||64.8||68.7|
|Extraordinary tax amounts / prior years||0.2||6.8|
|Asset acquisition / disposal||(5.6)||12.7|
|Cash flow from extraordinary operations of assets held for sale||(4.8)||–|
|Cash flow from non-ordinary operations||(18.1)||5.7|
|Total cash flow||46.7||74.4|
|NFP end of period||(209.3)||(189.2)|
Cash generation in the last 12 months is structured as follows:
- cash flow from ordinary operations stood at € 64.8 million, € 66.1 million of which from continuing operations minus taxes and financial expense of € 9.8 million, and the management of investments in associates. Mondadori France assets, held for sale, generated approximately € 11 million in cash flow from ordinary operations in the same period, net of intragroup components, relating specifically to financial expense.
Cash flow from operations is the result of the positive operating income of € 86.5 million, alleviated by investments of approximately € 20 million and a steady trend in net working capital (including provisions) versus September 2017, despite the drop recorded in the Magazines Italy Area which, in light of the persisting decline in revenue and a negative structural NWC, recorded an absorption of working capital;
- cash flow from non‐ordinary operations came to approximately € ‐13 million, net of the contribution from assets held for sale, and included:
– outlays for restructuring costs of approximately € 8 million;
– financial outflows from the disposal of Inthera in May 2018, as well as a number of minor acquisitions (including Direct Channel) in Magazines Ital
Cash flow from non‐ordinary operations from Mondadori France assets came to € ‐4.8 million, due mainly to payment of restructuring costs.