PRESS RELEASE
BOARD OF DIRECTORS APPROVES
INTERIM MANAGEMENT REPORT AS AT 30 SEPTEMBER 2018
Assets under management totalling more than EUR 11,400 million, with fee income
of EUR 45.1 million, up by 3.4% compared with Q3 2017
Strong cash generation deriving in particular from net distributions of Private Equity
funds, with the Net Financial Position of the Holding Companies rising to EUR +140.3
million as at 30 September 2018 (compared with EUR +61.8 million as at 31
December 2017)
Proposal for the cancellation of 40,000,000 treasury shares, to be approved by an Extraordinary Shareholders' Meeting to be called concurrently with the approval of the Financial Statements as at 31 December 2018
Milan, 8 November 2018 - The Board of Directors of DeA Capital S.p.A., chaired by Lorenzo Pellicioli, met today to examine and approve the Interim Management Report as at 30 September 2018.
Analysis of the Consolidated Results as at 30 September 2018
As at 30 September 2018, assets under management came to more than EUR 11,400 million, with fee income of EUR 45.1 million, up by 3.4% compared with Q3 2017, due in particular to the contribution of the CCR II Fund.
The Net Financial Position of the Holding Companies was positive at EUR 140.3 million as at 30 September 2018, compared with EUR 61.8 million as at 31 December 2017 (restated due to the distribution of the extraordinary dividend of around EUR 30.5 million). The change of EUR +78.5 million was primarily caused by the liquidity generated by net distributions of the Private Equity funds, which amounted to in excess of EUR 76 million in the first nine months of 2018.
The Net Asset Value (NAV) per share was EUR 1.83, compared with EUR 1.80 as at 31 December 2017 (restated in accordance with the provisions of the new IFRS 15, in force as of 1 January 2018, and due to the distribution of the above-mentioned extraordinary dividend). The total NAV (group shareholders' equity) was EUR 463.4 million, compared with EUR 459.4 million at the end of 2017 (the latter also restated in accordance with the provisions of the new IFRS 15, in force as of 1 January 2018 and due to the distribution of the above-mentioned extraordinary dividend).
Turning to the other key financials:
Investment portfolio. The investment portfolio totalled EUR 322.4 million as at 30 September 2018 comprising Private Equity investments (EUR 51.3 million), units in funds (EUR 126.4 million) and holdings in the Alternative Asset Management segment (EUR 144.7 million).
Group Net Profit. As at 30 September 2018, the Group net profit was EUR +6.9 million, compared with EUR +4.9 million as at 30 September 2017. It should be noted that the Group Net Profit is basically aligned with the IAS 1 Comprehensive Income as a result of the application of IFRS 9 as of 1 January 2018. Please note that following the introduction of IFRS 9 as of 1 January 2018, all changes in the fair value of financial investments are recognised in the income statement, while in 2017 part were recognised under shareholders' equity; therefore, in the consolidated income
DeA Capital S.p.A., Registered Office in Milan, Via Brera 21, 20121 Milan - Italy, Tel. +39 02 6249951, fax +39 02 62499599
Controlled and coordinated by De Agostini S.p.A., Registered Office in Novara, Via G. da Verrazano 15, 28100 Novara - Italy
statement trends in Other investment income/expenses in the first nine months of 2018 and in the same period of 2017 are not comparable.
Significant events after the end of the period
On 28 October 2018, the Boards of Directors of IDeaMI SPAC (of which DeA Capital holds 9.7% of the total shares issued) and A. Agrati S.p.A. ("Agrati") approved the business combination. Agrati is one of the top global manufacturers of fastening systems in the automotive industry components sector.
If the business combination is approved by the shareholders' meetings of the two companies, expected to take place on 30 November 2018, Agrati will merge into IDeaMI, which will in turn change its corporate name to Agrati. It is expected that the combined entity will remain listed on the Milan stock exchange's AIM Italia market, with a view to transitioning to the Milan stock exchange's Mercato Telematico Azionario market, preferably in the STAR segment, and that, as a result of the merger, Agrati will benefit from new financial resources, up to EUR 175 million, for its development plans, which also call for external development.
Proposal for the cancellation of 40,000,000 treasury shares
DeA Capital S.p.A. announces that, following the purchases of treasury shares undertaken and the vesting of the double voting rights in the shares held by the parent company De Agostini S.p.A., the free float has fallen beneath the minimum level set in the Instructions for the Regulations for Markets Organised and Managed by Borsa Italiana for the company to remain in the STAR Segment of the Mercato Telematico Azionario.
In order to restore compliance with the above level, a solution structured as follows has been approved by the Company's Board of Directors: (i) waiver by the majority shareholder De Agostini S.p.A. of 50% of the double voting rights on the owned shares and (ii) reduction of share capital through the cancellation of 40,000,000 treasury shares. This latter action will also be taken in view of eliminating treasury shares no longer functional to the Company's needs.
The proposal for the cancellation of the 40,000,000 treasury shares in portfolio is to be approved by an Extraordinary Shareholders' Meeting to be called concurrently with the approval of the Financial Statements as at 31 December 2018 (planned for April 2019).
In the light of the above, it is announced that the parent company, De Agostini S.p.A., has already waived, by notice received today, 50% of the double voting rights held by the said company and has undertaken to vote in favour of the proposal for the cancellation of 40,000,000 treasury shares.
It should be noted that the above cancellation has no effect on the income statement or balance sheet at the level of the company's net profit or loss, total NAV, and NAV per share.
Outlook
With respect to Private Equity Investment and Alternative Asset Management activities, the work of increasing the value of the investments in the portfolio and developing activities relating to the asset management companies continues, in line with what has already been announced.
In terms of its capital position, DeA Capital S.p.A. will continue to maintain a solid financial structure, ensuring that shareholders receive attractive cash returns, primarily dividends, based on the available liquidity.
****
The Interim Management Report as at 30 September 2018 will be made available to the public on 9 November 2018, at the company's registered office, on the authorised storage system 1info(www.1info.it) and on the pageAnnual and Quarterly Reports of the website.
DECLARATION BY THE MANAGER RESPONSIBLE FOR PREPARING THE COMPANY'S ACCOUNTS
Manolo Santilli, Chief Financial Officer and the manager responsible for preparing the Company's accounts, hereby declares, pursuant to Article 154-bis, paragraph 2 of the Consolidated Finance Law (TUF), that the financial information contained in this press release accurately represents the figures in the Company's accounting records.
For further information, please contact:
DeA Capital S.p.A. - Investor Relations | De Agostini S.p.A. - Press Office |
Alberto Barucci/Anna Majocchi | Elena Dalle Rive |
Tel. +39 02 6249951 | Tel. +39 02 62499592 / 335 7835912 |
ir@deacapital.it | elena.dallerive@deagostini.it |
DeA Capital (www.deacapital.com). DeA Capital S.p.A., a De Agostini Group company, is one of Italy's largest alternative investment companies. The Company, which operates in both Private Equity Investment and Alternative Asset Management, has about EUR 11,400 million in assets under management and is listed in the STAR segment of the Milan stock exchange.
The Group's operating performance and financial position, along with a summary of the financial results of the asset management companies, are summarised below.
Net Asset Value
30 september 2018
1 January 2018 "adjusted"
M€ | €/Sh. | M€ | €/Sh. | |
Private Equity Investment | ||||
- Kenan Inv. / Migros | 19.7 | 0.08 | 45.6 | 0.18 |
- Funds - Private Equity / Real Estate | 126.4 | 0.50 | 170.9 | 0.67 |
- Other (IDeaMI, Cellularline,...) | 31.6 | 0.12 | 33.4 | 0.13 |
Total PEI (A) | 177.7 | 0.70 | 249.9 | 0.98 |
Alternative Asset Management | ||||
- DeA Capital Real Estate SGR | 97.9 | 0.39 | 101.2 | 0.40 |
- DeA Capital Alternative Funds SGR | 40.0 | 0.16 | 39.9 | 0.16 |
- Other (YARD / SPC,...) | 6.8 | 0.03 | 6.0 | 0.02 |
Total AAM (B) | 144.7 | 0.58 | 147.1 | 0.58 |
Investment Portfolio (A+B) | 322.4 | 1.28 | 397.0 | 1.56 |
Other net assets (liabilities) | 0.7 | 0.00 | 0.6 | 0.00 |
Net Financial Position Holdings | 140.3 | 0.55 | 61.8 | 0.24 |
NAV | 463.4 | 1.83 | 459.4 | 1.80 |
Consolidated Statement of Financial Position
(EUR thousand) | 30.9.2018 | 1.1.2018 (*) | 31.12.2017 |
ASSETS Non-current assets Intangible and tangible assets Goodwill Intangible assets Property, plant and equipment Total intangible and tangible assets Investments Investments valued at equity Investments held by Funds
Other Investments available for sale Other Investments at Fair Value through P&L Funds available for sale Funds at Fair Value through P&L Other financial assets available for sale Other financial assets at Fair Value through P&L Total financial Investments Other non-current assets Deferred tax assets Loans and receivables Receivables for deferment of placement costs Other non-current assets Total other non-current assets Total non-current assets Current assets Trade receivables Financial assets measured at Fair Value Financial receivables Tax receivables from parent companies Other tax receivables Other receivables Cash and cash equivalents Total current assets Total current assets | 93,745 22,275 932 | 93,745 23,488 1,458 | 93,745 23,488 1,458 |
116,952 | 118,691 | 118,691 | |
24,475 21,017 21,017 51,263 155,678 7 | 29,293 48,583 48,583 78,953 169,776 13 | 29,293 48,583 13,683 34,900 78,953 169,776 13 | |
252,440 | 326,618 | 326,618 | |
2,380 242 509 4,302 | 2,173 684 587 5,403 | 2,173 684 0 5,403 | |
7,433 | 8,847 | 8,260 | |
376,825 | 454,156 | 453,5690 | |
11,670 6,252 0 213 5,077 8,313 180,993 | 16,069 4,385 578 1,055 11,272 16,886 127,916 | 16,069 4,385 578 1,055 11,272 16,886 127,916 | |
212,518 | 178,161 | 178,161 | |
212,518 | 178,161 | 178,161 | |
TOTAL ASSETS | 589,343 | 632,317 | 631,730 |
SHAREHOLDERS' EQUITY AND LIABILITIES SHAREHOLDERS' EQUITY Net equity Group Minority interests Shareholders' equity LIABILITIES Non-current liabilities Deferred tax liabilities Provisions for employee termination benefits Payables to staff Total non-current liabilities Current liabilities Trade payables Payables to staff and social security organisations Current tax Other tax payables Other payables Short term financial loans Total current liabilities | |||
463,353 | 489,877 | 489,431 | |
80,580 | 95,182 | 95,182 | |
543,933 | 585,059 | 584,613 | |
6,451 4,517 82 | 8,190 4,204 81 | 8,049 4,204 81 | |
11,050 | 12,475 | 12,334 | |
5,767 6,306 6,059 7,922 8,106 200 | 6,594 8,330 1,998 5,564 12,097 200 | 6,594 8,330 1,998 5,564 12,097 200 | |
34,360 | 34,783 | 34,783 | |
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 589,343 | 632,317 | 631,730 |
(*) Data at 31.12.2017 reclassified / restated for the application of IFRS 9 and IFRS 15
Summary Consolidated Income Statement
(EUR thousand) | Third Quarter 2018 | First nine months of 2018 | Third Quarter 2017 | First nine months of 2017 |
Alternative Asset Management fees Income (loss) from equity investments Other investment income/expense Income from services Other income Other expenses (*) Financial income and expenses | 14,405 (573) (10,062) 675 29 (15,412) 124 | 44,370 927 36,756 1,794 62 (43,530) 419 | 14,501 134 (1,574) 330 33 (14,290) 56 | 42,175 5,458 5,640 543 169 (49,586) (70) |
PROFIT/(LOSS) BEFORE TAX | (10,814) | 40,798 | (810) | 4,329 |
Income tax | (434) | (4,175) | (1,741) | (1,301) |
PROFIT/(LOSS) FOR THE PERIOD FROM CONTINUING OPERATIONS | (11,248) | 36,623 | (2,552) | 3,028 |
Profit (Loss) from discontinued operations/held-for-sale assets | 0 | 0 | 0 | 0 |
PROFIT/(LOSS) FOR THE PERIOD | (11,248) | 36,623 | (2,552) | 3,028 |
- Group share - Non controlling interests | (10,255) (993) | 6,863 29,760 | (1,289) (1,263) | 4,947 (1,919) |
Earnings per share, basic (€) | 0.027 | 0.000 | 0.019 | |
Earnings per share, diluted (€) | 0.027 | 0.000 | 0.019 |
(*) Includes items "personnel costs", "service costs", "depreciation, amortization and impairment" and "other expenses"
Performance by business in the first nine months of 2018
(EUR thousand) | Private Equity Investment | Alternative Asset Management | Holdings/ Eliminations | Consolidated |
Alternative Asset Management fees Income (loss) from equity investments Other investment income/expense Other Income Other expenses Financial income and expenses | 0 108 38,031 0 (2,516) 430 | 45,103 819 (1,275) 1,328 (36,813) (16) | (733) 0 0 528 (4,201) 5 | 44,370 927 36,756 1,856 (43,530) 419 |
PROFIT/(LOSS) BEFORE TAXES | 36,053 | 9,146 | (4,401) | 40,798 |
Income tax | 0 | (3,020) | (1,155) | (4,175) |
PROFIT/(LOSS) FOR THE PERIOD FROM CONTINUING OPERATIONS | 36,053 | 6,126 | (5,556) | 36,623 |
Profit (Loss) from discontinued operations/held-for-sale assets | 0 | 0 | 0 | 0 |
PROFIT/(LOSS) FOR THE PERIOD | 36,053 | 6,126 | (5,556) | 36,623 |
- Group share - Non controlling interests | 7,201 | 5,218 | (5,556) | 6,863 |
28,852 | 908 | 0 | 29,760 |
Performance by business in the first nine months of 2017
(EUR thousand) | Private Equity Investment | Alternative Asset Management | Holdings/ Eliminations | Consolidated |
Alternative Asset Management fees Income (loss) from equity investments Other investment income/expense Other Income Other expenses Financial income and expenses | 0 4,998 5,758 0 (1,700) (156) | 43,586 460 (118) 374 (43,789) 21 | (1,411) 0 0 338 (4,097) 65 | 42,175 5,458 5,640 712 (49,586) (70) |
PROFIT/(LOSS) BEFORE TAXES | 8,900 | 534 | (5,105) | 4,329 |
Income tax | 0 | (1,157) | (144) | (1,301) |
PROFIT/(LOSS) FOR THE PERIOD FROM CONTINUING OPERATIONS | 8,900 | (623) | (5,249) | 3,028 |
Profit (Loss) from discontinued operations/held-for-sale assets | 0 | 0 | 0 | 0 |
PROFIT/(LOSS) FOR THE PERIOD | 8,900 | (623) | (5,249) | 3,028 |
- Group share - Non controlling interests | 8,944 | 1,252 | (5,249) | 4,947 |
(44) | (1,875) | 0 | (1,919) |
Attachments
- Original document
- Permalink
Disclaimer
DEA Capital S.p.A. published this content on 08 November 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 08 November 2018 15:03:08 UTC