IFIL - IFIL Board of Directors approves the first quarter 2005 resultsJune 09, 2005
The Board of Directors of IFIL S.p.A. met today in Turin under the chairmanship of Gianluigi
Gabetti to examine the consolidated results for the first three months of 2005, prepared in
accordance with IAS/IFRS international accounting standards.
The first quarter of 2005 ended with a consolidated net income of the IFIL Group of € 81.4
million. Compared to the corresponding period of 2004 (in which a loss was reported of € 83.3
million), the result shows an improvement of € 164.7 million, mainly owing to better results
posted by the Fiat Group.
The consolidated net financial position of the “Holdings System” at March 31, 2005 shows a
net cash position of € 613.9 million. This is a reduction of € 66.1 million compared to the end
of 2004, principally due to the investment made in Sanpaolo IMI during March 2005.
Consolidated stockholders’ equity of the Group at March 31, 2005 amounts to
€ 4,041.1 million, up from € 3,794.1 million at the end of 2004. The increase of € 247 million is
basically due to the adjustment of the investment in Sanpaolo IMI to fair value and the
consolidated net income reported by the Group for the first quarter.
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During March and April 2005, IFIL purchased on the market 22,700,000 Sanpaolo IMI
ordinary shares (1.54% of the class of stock) for an investment of € 263.5 million. At the end of
May, IFIL holds 6.31% Sanpaolo IMI ordinary capital stock (equal to 4.99% of capital stock).
In April, the agreement was executed between IFIL, Banca Intesa, Marcegaglia Group and
Sviluppo Italia for the partial privatization of Sviluppo Italia Turismo (SIT). Once approval was
obtained from the European antitrust authority, Turismo&Immobiliare (the company in which
the three private stockholders each own equal stakes) subscribed to SIT’s capital increase of
€ 60 million and purchased a 49% stake in the company from Sviluppo Italia for € 16 million.
The total investment is € 76 million (IFIL’s share is equal to € 25.5 million).
On May 6, 2005, after authorization was obtained from the antitrust authority, 99.09% of
Rinascente S.p.A. capital stock held by Eurofind Textile S.A. (a company controlled by Auchan
and IFIL) was sold to Tamerice S.r.l. for a price of € 888 million. On May 17, 2005, the IFIL
Group purchased the remaining 50% stake in Eurofind Textile from the Auchan Group for
€ 349.5 million. As a result of these transactions, which will be booked in the second quarter of
the year, the IFIL Group received net proceeds of about € 530 million and realized a gain of
more than € 450 million
Change in the corporate calendar of events
The meeting of the Board of Directors for the approval of the consolidated six month report at
June 30, 2005, prepared in accordance with IAS/IFRS, originally scheduled for September 12,
2005, will be held on September 28, 2005.
Taking into account the forecasts formulated by the major holdings and other estimates
currently available, including that relating to the gain on the sale of La Rinascente, the 2005
consolidated financial statements of the IFIL Group are expected to show a profit.
As for IFIL S.p.A., the profit for 2005 is expected to be higher than that of the prior year
(€ 80.2 million).