The Group’s net financial position at 31 December 2016 came to -263.6 million euro versus -199.4 million euro at 31 December 2015, as a result of cash outlays for extraordinary transactions of 132 million euro, despite the Group’s positive cash generation from ordinary operations of 68 million euro (48 million euro on a like-for-like basis).

PFN_9M16_EN

At 31 December 2016 ordinary cash flow (after the cash-out for financial charges and taxes for the year) amounted to 67.9 million euro, which is net of the cash outlays in the January-March quarter (not consolidated in 2016) of Rizzoli Libri, attributable to the investments made and to the seasonal nature of the Education business; on a like-for-like basis, Group cash generation from ordinary operations came to 48.4 million euro, improving versus 45.4 million euro in 2015.

PFN_FY16_EN_2

The net financial position as at 31 December 2016 breaks down as follows:

Net financial position (€ mln)Euro/millions 31 December 2016Euro/millions 31 December 2015
Cash and cash equivalents77.630.7
Assets (liabilities) from derivative instruments(1.6)(0.0)
Other financial assets (liabilities)(13.4)(3.4)
Loans (short and medium/long term)(326.2)(226.6)
Net financial position(263.6)

Since 2009 the Mondadori Group has held no bonded loans and its debt is financed through the use of medium-long term credit lines. At 31 December 2016 these totalled 680 million euro, of which 475 million euro is committed.

(Euro/millions)Pool of Credit InstitutionsOf which unutilisedOf which with interest rate hedge
(1) Term Loan A1 (Refinancing)190.7145.9
(2) Term Loan A2 (Line dedicated to acquisition of RCS Libri)104.3
(3) Revolving Facility B100.0100.0
(4) Acquisition Line C80.043.8
Total475.0
Due date2017201820192020
(1)€ 16.1 million€ 21.5 million€ 21.5 million€ 131.7 million
(2)€ 8.8 million€ 11.8 million€ 11.8 million€ 72.0 million
(3)bullet loan, coming to maturity in December 2020
(4) bullet loan coming to maturity in December 2020, increasable up to 105.0 million euro, with concurrent reduction of A1 or A2

The Group’s short-term loans, amounting to 205.0 million euro, 0.9 million euro of which drawn down at 31 December 2016, include overdraft credit lines on current accounts, advances subject to collection and “hot money” flows.