IFIL - IFIL’s Board of Directors approves Q1 2006 resultsMay 12, 2006
The Board of Directors of IFIL S.p.A., which met today in Turin under the chairmanship of
Gianluigi Gabetti, examined the consolidated results for the first three months of 2006.
The consolidated profit of the IFIL Group for the first quarter of 2006 is € 67.3 million (€ 81.4
million in the same period of 2005). The decrease of € 14.1 million is basically due to the reduction
in the Fiat Group’s result (which in the first quarter of 2005 had included significant net unusual
income). The decline was only partially compensated by the results of the other operating
subsidiaries and associates.
The consolidated net financial position of the “Holdings System” at March 31, 2006 is a positive
€ 337.2 million, down by € 11.1 million compared to the balance at the end of 2005 (€ 348.3
million); the decrease originates from the change in the flows from ordinary activities.
The consolidated equity of the Group at March 31, 2006 is € 5,370 million (€ 5,186 million at the
end of 2006). The increase of € 184 million is due to the fair value adjustment of the investment in
Sanpaolo IMI (+€ 148.4 million), consolidated profit of the Group in the first quarter
(+€ 67.3 million), negative translation differences (-€ 39.1 million) and other net changes (+€ 7.4
The Board of Directors of IFIL took note of the resignation of the Board of Directors of
Juventus F.C. S.p.A., emphasizing that the extraordinary transactions of Juventus, if any, will be the
exclusive competence of the Board of Juventus.
On February 21, 2006, Consob also notified IFIL S.p.A. of its objections under art. 187-septies of
Legislative Decree No. 58/1998 in relation to the content of the press release dated
August 24, 2005.
On March 9, 2006, the company’s offices were searched under the orders of the Turin district
attorney’s office with regard to the same facts raised in the objections by Consob. At the same time,
IFIL was notified of the inquiry into its administrative responsibility under Legislative Decree
No. 231/2001. In April, IFIL lodged its protest against the objections advanced by Consob.
On April 24, 2006, after receiving authorization from the pertinent authority, the IFIL Group
finalized the purchase of 10% of the capital stock of Banca Leonardo S.p.A. for an investment of
€ 46.6 million.
After this investment, the consolidated net financial position of the “Holdings System” shows a
positive balance of approximately € 290 million.
On May 9, 2006, the Turin Court rejected the request to cancel the resolution to increase IFIL
capital stock reserved for Istituto Finanziario Industriale S.p.A. passed by the extraordinary
stockholders’ meeting of IFIL held on April 23, 2003, as well as the request for compensation of
damages presented by K Capital, ordering K Capital to reimburse IFIL S.p.A. for all legal fees.
Bonds falling due
In accordance with Borsa Italian S.p.A. instructions, IFIL provides disclosure of the fact that its
bonds IFIL 2003-2006 of face value € 100 million will fall due in December 2006.
For fiscal 2006, IFIL S.p.A. is expected to report a profit.
On a consolidated level, taking into account the forecasts formulated by the major holdings, the
IFIL Group expects to show a profit in 2006, although lower than the profit reported in 2005, which
was the highest in the Group’s history.