|Net financial position (€ mln)||31 December 2017||31 December 2016|
|Cash and cash equivalents||66.6||77.6|
|Assets (liabilities) from derivative instruments||(0.3)||(1.6)|
|Other financial assets (liabilities)||(10.0)||(13.4)|
|Loans (short and medium/long term)||(245.4)||(326.2)|
|Net financial position||(189.2)||(263.6)|
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 31 December 2017 amounted to 664.1 million euro, 450.0 million euro of which committed; the change in committed lines versus 31 December 2016 amounts to -20.6 million euro, following a mandatory partial early repayment of the previous loan.
The Group’s short-term loans, amounting to 214.1 million euro, 1 million euro of which drawn down at 31 December, include overdraft credit lines on current accounts, advances subject to collection and “hot money” flows.
At 31 December, the 450.0 million euro 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|
The Group’s net financial position and the relating cash flow in the reporting period are detailed below:
|NFP beginning of period||(263.6)||(199.4)|
|Effect of investments / dividends||(2.1)||(4.7)|
|Change in NWC + provision||5.7||12.7|
|Cash flow from operations||90.3||99.3|
|Cash flow from ordinary operations||(68.7)||(67.9)|
|Extraordinary tax amounts / prior years||6.8||15.5|
|Asset acquisition / disposal||12.6||(132.6)|
|Cash flow from extraordinary operations||5.6||(132.0)|
|Total cash flow||74.3||(64.2)|
|NFP end of period||(189.2)||(263.6)|
The net financial position improved by over 74 million Euro, with net debt decreasing to reach –189.2 million euro versus -263.6 million euro at 31 December 2016.
Cash generation in the year is structured as follows:
- cash flow from ordinary operations stood at 7 million euro, 90.3 million euro of which from operations minus tax and financial costs of 21.6 million euro.
- cash flow from operations benefited from the performance of operations net of non-ordinary items, which came to a positive 106.3 million euro, and from the generation of net working capital of 5.7 million euro (including provisions); this performance was mitigated by capital expenditure of approximately 20 million euro;
- cash flow from extraordinary operations came to a positive 5.6 million euro and included:
- the net impact of disposals and acquisitions of approximately 12.6 million euro, referring mainly to the disposal of NaturaBuy by Mondadori France, and to the outsourcing of logistics activities (which included the disposal of the related property);
- cash-outs for restructuring costs of 13.8 million euro;
- collection of tax receivables accrued in prior years for a total of 6.8 million euro.