Net Financial Position
| Net financial position (€ mn) | 30 June 2019 | 30 June 2018 | 31 December 2018 |
|---|---|---|---|
| Cash and cash equivalents | 34.3 | 26.5 | 82.4 |
| Assets (liabilities) from derivative financial instruments | (1.4) | (0.6) | (0.8) |
| Other financial assets (liabilities) | (0.2) | (5.5) | (1.0) |
| Loans (short and medium/long term) | (241.5) | (265.7) | (231.8) |
| Held-for-sale financial assets (liabiliaties) | 4.6 | 6.9 | 3.9 |
| Net financial position excluding IFRS16 | (204.2) | (238.4) | (147.2) |
| Financial payables IFRS16 | (102.0) | – | – |
| Total net financial position | (306.2) | (238.4) | (147.2) |
IFRS 16 NFP stood at € -306.2 million and includes the IFRS 16 impact of € -102.0 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 30 June 2019 amounted to € 666.8 million, € 435.0 million of which committed.
The Group’s short-term loans, amounting to € 231.8 million, € 10.0 million of which drawn down at 30 June 2019, included overdraft credit lines on current accounts, advances subject to collection and “hot money” flows.
At 30 June, the € 435.0 million pool consisted of:
| (Euro/millions) | Bank pool | of which: unutilized | of which: with interest rate hedge |
|---|---|---|---|
| (1) Term Loan A | 135.0 | – | 90.0 |
| (2) Term Loan B | 100.0 | – | – |
| (3) RCF | 100.0 | 100.0 | – |
| (4) Acquisition Line C | 100.0 | 100.0 | – |
| Total loans | 435.0 | 200.0 | 90.0 |
| Maturity dates | 2019 | 2020 | 2021 | 2022 |
|---|---|---|---|---|
| (1) Term Loan A | € 17.5 mln (December) | € 22.5 mln (December) | € 27.5 mln (December) | € 67.5 mln (December) |
| (2) Term Loan B | bullet loan, coming to maturity on 30/9, in the event of the sale of Mondadori France | |||
| (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:
| (€/ml) | 1H19 LTM | December 2018 |
|---|---|---|
| NFP at beginning of period | (347,3) | (189,2) |
| Financial liabilities – application at 01-01-2019 of IFRS16 | (108,9) | – |
| NFP at beginning of period excl. IFRS16 | (238,4) | (189,2) |
| Adjusted EBITDA (no IFRS16) | 91,8 | 90,1 |
| Change in NWC and provisions | (8,7) | (3,8) |
| CAPEX | (19,1) | (20,0) |
| Cash flow from operations | 64,0 | 66,3 |
| Financial expense | (1,1) | (2,9) |
| Tax | (16,4) | (7,9) |
| Cash flow from ordinary operations of assets held for sale | 14,0 | 15,3 |
| Cash flow from ordinary operations | 60,5 | 70,9 |
| Restructuring costs | (8,5) | (11,3) |
| Extraordinary tax amounts / prior years | (0,7) | (1,2) |
| Management of investments in associates | (5,4) | (3,5) |
| Acquisition/disposal of assets | (4,0) | (9,5) |
| Cash flow from extraordinary operations of assets held for sale | (5,1) | (3,4) |
| Other extraordinary income / expenses | (2,5) | – |
| Cash flow from non-ordinary operations | (26,3) | (28,9) |
| Total cash flow | 34,2 | 42,0 |
| NFP end of period excl. IFRS 16 | (204,2) | (147,2) |
| IFRS16 effects in the period | 6,9 | – |
| NFP end of period incl. IFRS 16 | (179,3) | (147,2) |
In the last twelve months, the Group’s net financial position (no IFRS) improved by approximately € 34 million, with net financial debt decreasing to € 204.2 million versus € 238.4 million at 30 June 2018.
Including the effect of the application of IFRS 16, the Group’s NFP at 30 June 2019 amounted to € 306.2 million.
Cash generation in the last 12 months is structured as follows:
- cash flow from ordinary operations came to a positive € 46.5 million, net of assets held for sale, and includes:
– € 64.0 from operations in the context of continuing operations, deducting tax and financial expense totaling € -17.5 million;
– the performance of cash flow from operations is attributable to operating income of € 91.8 million, alleviated by capital expenditure of approximately € 19 million and by net working capital (including provisions) of € -8.7 million, due mainly to the structural decline recorded by Magazines Italy as a result of the ongoing downturn in revenue and downsizing of activities, as well as the temporary absorption of NWC of the Retail Area;
– the cash flow from ordinary operations in the context of discontinued operations contributed € 14.0 million.
- cash flow from non-ordinary operations came to approximately € -21 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 Panorama in 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 € 4.2 million.