Financial position

Reclassified consolidated statement of financial position10

Change
(€m)31.12.201531.12.20142014At constant
exchange rates
Intangible assets 921.3 868.3 53.1 (10.1)
Property, plant and equipment 876.0 834.9 41.1 (7.1)
Financial assets 17.3 22.8 (5.6) (5.8)
A) Non–current assets 1,814.6 1,726.0 88.6 (23.0)
Inventories 136.4 123.5 12.9 9.7
Trade receivables 48.3 42.5 5.8 5.7
Other receivables 148.8 151.3 (2.5) (7.5)
Trade payables (398.8) (377.1) (21.7) (11.4)
Other payables (352.2) (335.0) (17.2) 0.9
B) Working capital (417.4) (394.7) (22.7) (2.6)
Invested capital (A + B) 1,397.2 1,331.3 65.8 (25.6)
C) Other non–current non-financial assets and liabilities (152.7) (147.3) (5.4) 3.9
D) Net invested capital (A + B + C) 1,244.4 1,184.0 60.4 (21.6)
Equity attributable to ownersof the parent 559.6 458.5 101.0 64.3
Equity attributable to non–controlling interests 40.4 32.1 8.3 8.2
E) Equity 600.0 490.7 109.3 72.5
Non-current financial liabilities 743.4 752.7 (9.3) (60.0)
Non-current financial assets (4.7) (4.9) 0.2 0.7
F) Non-current financial indebtedness 738.6 747.8 (9.2) (59.3)
Current financial liabilities 97.3 150.0 (52.7) (61.0)
Cash and cash equivalents and current financial assets (191.5) (204.5) 13.0 26.1
G) Current net financial indebtedness (94.2) (54.5) (39.7) (34.8)
Net financial position (F + G) 644.4 693.3 (48.9) (94.1)
H) Total (E + F + G), as in D) 1,244.4 1,184.0 60.4 (21.6)

Net invested capital as at 31 December 2015 amounted to € 1,244.4m, showing an increase of € 60.4m, compared to € 1,184.0m as at 31 December 2014, mainly due to the appreciation of the US dollar against the Euro.

Cash flow

(€m)  Full Year 2015Full Year 2014
EBITDA 376.2 316.2
Change in net working capital 13.1 (35.3)
Other non cash items (4.9) (4.5)
Cash flows from operating activities 384.4 276.5
Tax paid (51.6) (36.5)
Net interest paid (35.7) (30.8)
Net cash flows from operating activities 297.2 209.1
Net CAPEX (219.0) (175.9)
Transfer of Retail US business 23.4 18.6
Free operating cash flows 101.5 51.8
   

In 2015 the Group generated free operating cash flow of € 101.5m, showing an increase compared to  51.8m from the previous year. The increase in net capital expenditure was more than offset by operating activities, with the increase in EBITDA and the contribution of net working capital, which benefited from the growth in revenue.

The change in net interest paid was negative due to non-recurring receipts of $ 7.6m in 2014, for the early termination of interest rate hedging derivatives on US bond loans.

The increase in tax paid reflects charges for 2015 only concerning the sale of the US Retail division ($ 7.1m) as well as higher advance payments made in the United States during the year.

Net cash flow received a boost in both years from the sale of the travel retail operations at US airports to the World Duty Free group; in 2015 this included the receipt of $ 25.5m (€ 23.4m) for the sale of the last four contracts in the month of February 11. In 2014, proceeds from the sale of travel retail operations to World Duty Free amounted to $ 24.4m (€ 18.6m).

Net financial position

Net debt as at 31 December 2015 was € 644.4m, as compared with € 693.3m the previous year. Cash generation was sufficient to fund all capital expenditure for the year and to off-set the negative impact of converting USD-denominated debt into Euros.

Change in net financial position (€m)

Change in net financial position (€m)

The fair value of interest rate hedging derivatives as at 31 December 2015 was € 1.7m, as compared with € -3.5m at the close as at 31 December 2014.

At 31 December 2015, 70% of net financial indebtedness was denominated in US dollars and the rest in Euros, while 54.8% was fixed-rate, including by way of Interest Rate Swaps. Debt consists mainly of committed non-current credit lines from banks and of long-term bonds (private placements). Loans have an average remaining life of four years and six months; in March 2015 the subsidiary HMSHost Corporation obtained an extension on its $ 250m credit line from March 2016 to March 2020. Also in the month of March 2015 Autogrill S.p.A. took out a new loan maturing in March 2020 in the amount of € 600m.

In 2015 the weighted average cost of debt was 4.1%, decreased from 5.1% the previous year.

The Group’s loan contracts and bond loans require it to uphold certain financial ratios. At 31 December 2015 all of these were amply satisfied.

10. The figures in the reclassified consolidated statement of financial position are directly derived from the consolidated financial statements and notes, with the exception of “Financial assets,” which does not include “Financial receivables from third parties” (€ 4.7m) classified as non-current financial receivables in the net financial position and included in other financial assets (non-current) in the consolidated statement of financial position.

11. The sale of net assets under these contracts, with respect to the proceeds received, did not affect the income statement of the year because the transaction took place with a related party and the capital gain of $ 8.6m was therefore recognized in net equity.