IFIL - IFIL’s board of directors approves consolidated results to September 30, 2007November 14, 2007
The board of directors of IFIL S.p.A., which met today in Turin under the chairmanship of Gianluigi Gabetti, approved the consolidated results to September 30, 2007.
Third-quarter 2007 consolidated profit attributable to the equity holders of IFIL is € 123.8 million (€ 81.5 million in the corresponding period of 2006). The positive change of € 42.3 million comes from the net increase in the profit of the holdings (+€ 57.4 million), the negative change in net financial income (expenses) (-€ 6.2 million) and other net changes (-€ 8.9 million).
Consolidated profit attributable to the equity holders of IFIL for the nine months ending September 30, 2007 is € 438.6 million. The positive change of € 167.6 million compared to the first nine months of 2006 (€ 271 million) is due to the net increase in the profit of the holdings (+€ 139.1 million) and higher net financial income (expenses) (+€ 48 million) that was partially offset by other net changes (-€ 19.5 million).
The consolidated net financial position of the “Holdings System” at September 30, 2007 shows a debt position of € 89 million with a negative change of € 475.2 million compared to the cash position at the end of 2006 (€ 386.2 million). The change is primarily due to the investments made during the first nine months of 2007, mainly in Cushman & Wakefield (€ 483,1 million) and in SGS (€ 121,5 million).
Consolidated equity attributable to the equity holders of IFIL at September 30, 2007 is € 6,311.9 million (€ 6,222.3 million at the end of 2006).
The IFIL board of directors also reviewed and adopted the Accounting and Administrative Control Model after concluding the process to adapt the preparation of corporate financial information to the requirements introduced by Law 262 of December 28, 2005, as amended.
Significant events of the third-quarter 2007
On July 27, 2007, the IFIL Group sold an approximate 22% stake in Sequana Capital S.A. to DLMD – a company controlled by Pascal Lebard, general manager of Sequana Capital S.A. – for a total of € 226.9 million. The IFIL Group partially financed the deal for € 27.2 million. After the disposal, the IFIL Group – which signed a three-year stockholders’ agreement with DLMD aimed at keeping the stockholder base of Sequana Capital S.A. stable – holds 26.69% of that company’s capital stock.
In the third quarter of 2007, the IFIL Group purchased 98,580 SGS shares on the market for € 81.9 million, equal to 1.26% of capital stock. Currently, the IFIL Group has a 15% interest in SGS capital stock.
After having obtained authorization from the competent authorities, on September 18, 2007 the IFIL Group sold its 25% holding in Turismo&Immobiliare to the Marcegaglia Group, Pirelli RE and Gabetti Property Solutions for € 5.2 million; on consolidation, the IFIL Group realized a gain on the sale of € 0.9 million.
With effect on September 30, 2007, the IFIL Group purchased, from Exor Group S.A., a 100% stake in the capital stock of ANCOM USA Inc, an American company which holds 1.96% of NoCo A LP, the firm through which operations are conducted by the Perella Weinberg Group, with a total payment of about $ 27 million.
The ruling on the appeal before the Turin Court of Appeals against the administrative sanctions imposed by Consob in respect of the press releases issued on August 24, 2005 by IFIL and Giovanni Agnelli e C. is in its final stage.
After the exchange of briefs, on November 7, 2007 the parties discussed the case and the Turin Court of Appeals adjourned the continuation of the discussion to the hearing set for December 5, 2007.
In the penal proceedings communicated to the same parties, the date set for the preliminary hearing before the Turin Courts was notified in accordance with articles 418 and 419 of the Penal Code for December 4, 2007.
For the year 2007, IFIL S.p.A. is expected to report a profit.
Taking into account the forecasts formulated by the major holdings, a profit is forecast for the IFIL Group in 2007.
In accordance with section 2, article 154 bis of the Consolidated Law on Financial Intermediation, the manager responsible for financial reporting, Aldo Mazzia, confirms that the financial information included in this press release agrees with company’s accounting records.