The Mondadori Group’s NFP (no IFRS 16) at 31 March 2019 stood at € ‐179.3 million, improving by € 42.6 million versus € ‐221.9 million at March 2018.

The increase versus € ‐147.2 million at December 2018, on the other hand, is due entirely to the seasonal nature typical of the Group’s segments of operation.

Net financial position (€/mln)31 March 201931 March 201831 December 2018
Cash and cash equivalents68.745.782.4
Assets (liabilities) from derivative financial instruments(1.0)(0.3)(0.8)
Other financial assets (liabilities)(8.8)(8.3)(1.0)
Loans (short and medium/long term)(242.0)(265.2)(231.8)
Held-for-sale financial assets (liabiliaties)3.86.33.9
 Net financial position excluding IFRS16 (179.3) (221.9) (147.2)
 Financial payables IFRS16 (107.1) – –
Total net financial position(286.4)(221.9)

IFRS 16 NFP stood at € ‐286.4 million and includes the IFRS 16 impact of € ‐107.1 million.

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 March 2019 amounted to € 636.9 million, of which € 435.0 committed.

The Group’s short‐term loans, totaling € 201.9 million, € 10.0 million of which drawn down at 31 March 2019, include overdraft credit lines on current accounts, advances subject to collection and “hot money” flows.

At 31 March, the € 435.0 million pool consisted of:

(Euro/millions)Bank poolof which:

unutilized

of which:

with interest rate hedge

(1) Term Loan A135.090.0
(2) Term Loan B100.0 75.0
(3) RCF100.0100.0
(4) Acquisition Line C100.0100.0 –
Total loans435.0
Maturity dates2019202020212022
(1) Term Loan A€ 17.5 mln

(December)

€ 22.5 mln

(December)

€ 27.5 mln

(December)

 € 67.5 mln

(December)

(2) Term Loan Bbullet 30/6
(3) RCF – – –bullet loan, coming to maturity in December
(4) Acquisition Line C – – –bullet loan, coming to maturity in December

The Group’s NFP and the relating LTM cash flow are detailed below:

 

(€/mn)1Q19 LTM December 2018
NFP at beginning of period(221.9)(189.2)
Financial liabilities – application at 01-01-2019 of IFRS16 (110.8) –
Adjusted EBITDA IFRS163.7
NFP at beginning of period IFRS16(329.0)(189.2)
Adjusted EBITDA (no IFRS16)90.790.1
Change in NWC and provisions(12.0)(3.8)
CAPEX(18.2)(20.0)
Cash flow from operations60.666.3
Financial expense(2.1)(2.9)
Tax(7.6)(7.9)
Cash flow from ordinary operations of assets held for sale17.715.3
Cash flow from ordinary operations68.670.9
Restructuring costs(8.8)(11.3)
Extraordinary tax amounts / prior years(1.3)(1.2)
Management of investments in associates(3.7) (3.5)
Acquisition/disposal of assets(8.6)(9.5)
Cash flow from extraordinary operations of assets held for sale(3.7)(3.4)
Cash flow from non-ordinary operations(26.1)(28.9)
Total cash flow42.642.0
NFP end of period(286.4)(147.2)
NFP end of period excl. IFRS 16(179.3)(147.2)

In the last twelve months, the Group’s net financial position (no IFRS) improved by approximately € 42.6 million, with net financial debt decreasing to € 179.3 million versus € 221.9 million at 31 March 2018.

Including the effect of the application of IFRS 16, the Group’s NFP at 31 March 2019 amounted to € 286.4 million.

Cash generation in the last 12 months is structured as follows:

  • cash flow from ordinary operations came to a positive € 50.9 million, net of assets held for sale, and includes:
    ‐ € 60.9 from operations in the context of continuing operations, deducting tax and financial expense totaling € 9.7 million;
    ‐ the performance of cash flow from operations is attributable to operating income of € 90.7 million, alleviated by investments of approximately € 18 million and by net working capital (including provisions) of € ‐12.0 million, due mainly to the decline recorded by Magazines Italy ‐ which has a structural negative NWC ‐ as a result of the ongoing downturn in revenue and downsizing of activities;
    – the cash flow from ordinary operations in the context of discontinued operations contributed € 17.7 million;
  • cash flow from non‐ordinary operations came to approximately € ‐22 million, net of the contribution from assets held for sale, and includes:
    – outlays for restructuring costs of approximately € 9 million;
    – financial outflows from the sale of Inthera and Panorama, respectively in May and November 2018, and the costs incurred for the liquidation of Mach2 Libri Spa;
    – recapitalization of the associate Società Europea di Edizioni S.p.A. for € 3.7 million.