Financial position

Restated consolidated statement of financial position15

   Change
(m) 31.12.2011 31.12.2010 2010 At constant exchange rates
Intangible assets 2,154.5 2,196.0 (41.5) (85.7)
Property, plants and equipment 923.4 925.1 (1.7) (15.4)
Financial assets 26.5 26.9 (0.3) (0.6)
A)    Non-current assets 3,104.4 3,147.9 (43.5) (101.7)
Inventories 266.0 246.3 19.8 16.4
Trade receivables 53.5 59.7 (6.3) (6.1)
Other receivables 227.9 185.1 42.8 41.2
Trade payables (632.4) (674.6) 42.2 46.8
Other payables (406.2) (392.4) (13.8) (7.0)
B)     Working capital (491.2) (575.9) 84.7 91.3
C)     Invested capital, less current liabilities 2,613.2 2,572.0 41.2 (10.4)
D)    Other non-current non-financial assets and liabilities (261.1) (286.1) 25.0 30.9
E)      Assets held for sale 1.0 (1.0) (1.0)
F)      Net invested capital 2,352.2 2,286.9 65.3 19.5
Equity attributable to owners of the parent 779.8 690.0 89.7 77.0
Equity attributable to non-controlling interests 19.6 21.3 (1.7) (2.1)
G)    Equity 799.4 711.4 88.1 74.8
Non-current financial liabilities 1,571.6 1,511.7 59.9 14.4
Non-current financial assets (3.0) (3.1) 0.1
H)    Non-current financial indebtedness 1,568.6 1,508.6 60.0 14.5
Current financial liabilities 214.2 258.1 (43.9) (49.6)
Cash and cash equivalents and current financial assets (230.0) (191.1) (38.8) (20.3)
I)       Current net financial indebtedness (15.8) 66.9 (82.7) (69.8)
Net financial indebtedness (H + I) 1,552.8 1,575.5 (22.8) (55.3)
L)      Total as in F) 2,352.2 2,286.9 65.3 19.5

15   The figures in the restated consolidated statement of financial position are directly derived from the consolidated financial statements and notes, with the exception of “other receivables” and “other non-current non-financial assets and liabilities”, which include deferred tax assets and liabilities (these are shown indistinctly under non-current assets in the consolidated statement of financial position

Net invested capital at 31 December 2011 came to € 2,352.2m, an increase of € 65.3m with respect to the previous year, due to the increase in working capital and the translation at current exchange rates of the Group’s net assets in non-euro countries. At constant exchange rates, there would have been  an increase of € 19.5m.

Net financial indebtedness at 31 December 2011 was € 1,552.8m, a decrease of € 22.8m compared with the previous year-end figure of € 1,575.5m. The effect of translating components denominated in non-euro currencies, particularly the US dollar, was unfavorable in the amount of € 32.5m.

Change in net  financial indebtedness

 

Change in net financial indebtedness

* Excludes € 39.2m IRS unwinding fees
** Includes the change in fair value of derivates

At the close of 2011, 30% of consolidated net financial indebtedness was denominated in US dollars, 28%in British pounds, and the rest in euros.

The fair value loss on interest rate hedges  at 31 December 2011 was € 7m (fair value loss of € 56.6m at the close of 2010). The significant reduction on the previous year reflects the early termination of interest rate hedges concurrently with the Group’s refinancing.

Debt consists mainly of committed medium and long-term credit lines from banks and bonds  (private placements). At 31 December 2011, loans had an average remaining life of around four years, which is significantly longer than in 2010 thanks to the refinancing process concluded in July. This involved the contracting of new credit lines for € 1.35 billion, maturing in 2016, of which € 650m will finance the Travel Retail & Duty-Free business.

As a result of the refinancing and the revision of interest rate hedges, at the close of the year 40% of debt was fixed-rate, compared with 64% at 31 December 2010.

The loan contracts require the Group to uphold certain financial ratios, namely a leverage ratio (net debt/ EBITDA) of 3.5 or less and interest coverage  (EBITDA/net financial expense) of at least 4.5. The ratios for contracts signed by Autogrill S.p.A. refer to the Group as a whole, while the ratios for the loan financing the Travel Retail & Duty-Free segment are based solely on that segment’s data. At 31 December 2011 all of the above covenants were amply satisfied.

Net  cash  generation

(m) 2011 2010
EBITDA 617.0 605.4
Change in net working capital (98.9) 40.7
Other items (2.5) (0.2)
Cash flow from  operating activities 515.6 645.9
Tax paid (87.4) (79.6)
Net interest paid (112.8) (74.6)
–  Of which IRS unwinding fees * (39.2)
Net cash flow from operating activities 315.4 491.7
Net Capex (209.4) (219.2)
Free operating cash flow 105.9 272.5
Free operating cash flow w/o IRS unwinding fees 145.1 272.5
* “Interest Rate Swap”, interest rate hedging contracts

The Group generated net cash from operating activities of € 105.9m in 2011 (including charges for the early  termination  of  interest  rate  hedges  in  the context of  the debt  refinancing  process), down from € 272.5m the previous year.

The decrease is explained by the trend in the change in net working capital, which was positive in 2010 and a negative € 98.9m in 2011. The most significant component of that change is the reduction in trade payables, mainly in the Food & Beverage segment in Europe.

Net  capital expenditure, amounting to € 209.4m, was slightly down  on the previous year and  was concentrated in the Food & Beverage business in Italy and the United States, for new openings and renovations mainly in the motorway channel. See Section 1.4 for a more detailed description of investment by each operating segment.

Capital  expenditure

  Change 
(m) 2011 2010 2010 At constant exchange rates
Food & Beverage 184.6 186.5 (1.0%) (2.7%)
Travel Retail & Duty-Free 18.6 27.6 (32.6%) (33.5%)
Corporate and unallocated 6.2 5.2 20.9% 20.9%
Total 209.4 219.2 (4.5%) (6.0%)