During preparation of the Annual Report for 2021, the Board of Directors confirmed the ability of the Company and the Group to continue as going concerns. Preparation of the Report also took into account the impact of application of the Settlement Agreement signed in October 2021 which has, above all, made it necessary to apply certain adjustments to amounts in the statement of financial position as at 1 January 2021. These include:
- closure of the balance of provisions for construction services required by contract as at 1 January 2021 (€2,540 million), accounted for as a direct reduction in intangible assets deriving from concession rights, reflecting the introduction of a new tariff framework following adoption by the Transport Regulator (ART) of Resolution 71/2019 on 19 June 2019;
- a reduction in provisions for repair and replacement (€761 million) and an increase of intangible assets deriving from concession rights (€439 million), reflecting the impact of remuneration through tolls, under the Financial Plan, of the extraordinary maintenance plan worth €1.2 billion, in common with other forms of investment;
- an increase in other provisions for risks (€711 million) and a reduction in intangible assets deriving from concession rights and costs (€489 million), reflecting the commitment given by the Company, as part of the Settlement Agreement, to invest €1.2 billion in infrastructure operated under concession without recovering the cost through tolls.
As a result of points b and c, the adjustments recognised have not had a significant impact on the Group’s or the Company’s income statement as at 1 January 2021. In fact, the total expense of €3.4 billion to be incurred by Autostrade per l’Italia in order to settle the dispute over alleged serious breaches of the Concession Arrangement had already been reflected in the financial statements for prior years. In the Settlement Agreement signed on 14 October 2021, it was agreed that the amount of €1.2 billion for the above extraordinary mainte- nance plan would be replaced by the same amount of unremunerated investment.
The scope of consolidation as at 31 December 2021 differs from the scope at 31 December 2020, reflecting:
- Autostrade per l’Italia’s acquisition of a 79.4% stake in Pavimental. Following the purchase, the Company holds a total interest of 99.4%;
- the establishment, in January 2021, of Free To X, a wholly owned subsidiary of Autostrade per l’Italia, whose mission is to develop integrated, sustainable mobility services;
- Movyon’s acquisition, at the end of March 2021, of a 90% stake in Infomobility, a company specialising in infomobility systems and hardware and software for the automotive sector.
A summary of the results for 2021, the complete financial statements and the Sustainability Report for 2021 (the Non-financial Statement) are available at the following link: https://www.autostrade.it/en/investor-relations/bilanci
|Other operating income||398||239||159||67|
|Total operating revenue||3,872||3,030||842||28|
|Cost of other external services||-351||-298||-53||18|
|Net staff costs||-586||-471||-115||24|
|Operating change in provisions||90||-403||493||n.s.|
|Total net operating costs||-1,747||-2,401||654||-27|
|Gross operating profit (EBITDA)||2,125||629||1,496||n.s.|
|Amortisation, depreciation, impairment losses, reversals of impairment losses and provisions for renewal work||-563||-672||109||-16|
|Operating profit/(loss) (EBIT)||1,562||-43||1,605||n.s.|
|Other financial income/(expenses), net||-332||-495||163||-33%|
|Profit/(Loss) before tax from|
|Income tax benefit/(expense)||-480||128||-608||n.s.|
|Profit/(Loss) from continuing operations||750||-410||1,160||n.s.|
|Profit/(Loss) from discontinued operations||-||1||-1||-100|
|Profit/(Loss) for the year||750||-409||1,159||n.s.|
|(Profit)/Loss attributable to non-controlling interests||27||-2||29||n.s.|
|(Profit)/Loss attributable to owners of the parent||723||-407||1,130||n.s.|
- Total operating revenue for 2021, amounting to €3,872 million, is up €842 million compared with 2020 (€3,030 million).
- Toll revenue of €3,474 million is up €683 million compared with 2020 (€2,791 million) reflecting a 23% increase in traffic on the network. Both comparative periods reflect the impact of the Covid-19 pandemic, whilst the positive performance of traffic in 2021, compared with 2020, is partly due to the relaxation during the year of the restrictions on movement introduced by Government authorities.
- Other operating income amounts to €398 million (€239 million in 2020), an increase of €159 million. After stripping out the contribution resulting from the consolidation of Pavimental (€96 million), the increase is primarily linked to the impact on service area royalties of the different effect, in the comparative periods, of the measures adopted by Autostrade per l’Italia to support service providers during the Covid-19 pandemic.
- Net operating costs amount to €1,747 million (€2,401 million in 2020).
- Maintenance costs amount to €462 million and, unlike 2020 (€867 million), do not include the works included in ASPI’s Extraordinary Maintenance Plan (€443 million in 2021), presented in capital expenditure. Including the impact of this plan in 2021 and stripping out the cost of the San Giorgio road bridge in Genoa (€88 million in 2021 and €148 million in 2020, whose impact on EBITDA was offset by use of the matching amount in provisions for repair and replacement accounted for in the “Operating change in provisions”), maintenance costs are up €98 million. This reflects an increase in the volume of work carried out as a result of continuation of the planned maintenance programme. The costs linked to the Extraordinary Maintenance Plan amounted to €349 million in 2020. A table showing details of the change is provided below:
- Gross operating profit (EBITDA), of €2,125 million is up €1,496 million compared with 2020 (€629 million). On a like-for-like basis, EBITDA is up €1,155 million. Cash EBITDA amounts to €1,948 million in 2021, calculated after stripping out the “operating change in provisions”, which made a positive contribution of €90 million in 2021 (a negative contribution of €403 million in 2020) and the non-cash effect of discounts and exemptions, totalling €87 million. This is an increase of €916 million compared with cash EBITDA for 2020 (€1,032 million in 2020).
- Amortisation and depreciation, impairment losses, reversals of impairment losses and provisions for renewal work amount to €563 million, a reduction of €109 million compared with 2020 (€672 million). This essentially reflects Autostrade per l’Italia’s adoption of the tariff mechanism introduced by ART from 2021.
- Operating profit (EBIT) of €1,562 million is an improvement of €1,605 million on 2020 (a loss of €43 million).
- Net other financial expenses of €332 million are down €163 million compared with 2020 (€495 million). This essentially reflects the change in the fair value of derivative financial instruments (a gain in 2021 and a loss in the comparative period). In 2021, the Group recognised financial expenses of €8 million after obtaining waivers from the Autostrade per l’Italia Group’s lenders, accepting changes to change of control provisions and the removal of Atlantia’s guarantee, where applicable.
- Income tax expense of €480 million in 2021 (a benefit of €128 million in 2020) is in line with pre-tax profit.
- Profit for the year of €725 million compares with a loss of €409 million for2020. On a like-for-like basis, profit amounts to €759 million, an improvement of €948 million compared with the loss for 2020.
- Profit for the year attributable to owners of the parent amounting to €723 million, compares with a loss of €407 million for 2020. On a like-for-like basis, the improvement amounts to €924 million compared with the loss for 2020.
|Maintenance costs (extraordinary plan)||443||349||(94)|
|Cost of reconstruction of the San Giorgio road bridge||(88)||(148)||60|
The following table shows a reconciliation of like-for-like consolidated amounts, for both comparative periods.
|€m||Notes||Gross operating profit (EBITDA)||Profit/(Loss) for the period||Profit/(Loss) attributable to owners of the parent||Operating cash flow||Gross operating profit (EBITDA)||Profit/(Loss) for the period||Profit/(Loss) attributable to owners of the parent||Operating cash flow|
|Reported amounts (A)||2,125||750||723||986||629||-409||-407||517|
|Adjustments for non like-for-like items|
|Impact connected with collapse of a section of the Polcevera road bridge||(1)||-44||-39||-39||-51||-60||-41||-41||-209|
|Impact of settlement of disputes with the MIMS||(2)||39||-6||-6||-263||-190||-130||-130||-|
|Change in the scope of consolidation (Pavimental, Pavimental Polska, Free to X, Infomobility and Tecne)||(3)||26||6||6||24||-2||-2||-2||-2|
|Change in discount rate applied to provisions||(4)||7||22||20||-||-63||-47||-44||-|
|Tax benefit of revaluation of assets by Tangenziale di Napoli and Autostrade Tech solely for the purposes of ITA GAAP (Law Decree 104/2020)||(6)||-||15||15||-11||-||-||-||-|
|Like-for-like amounts (C) = (A)-(B)||2,099||759||734||1,286||944||-189||-190||728|
|€m||31 December 2021||31 December 2020||Increase/(Decrease)|
|Non-financial assets (A)||15,768||17,724||-1,956|
|Net working capital (B)||-1,190||-835||-355|
|Gross invested capital (C=A+B)||14,578||16,889||-2,311|
|Non-financial liabilities (D)||-3,684||-6,490||2,806|
|Net invested capital (E=C+D)||10,894||10,399||495|
|Equity attributable to owners of the parent||2,277||1,488||789|
|Equity attributable to non-controlling interests||371||354||17|
|Net debt (G)||8,246||8,557||-311|
|Net debt and equity (H+F+G)||10,894||10,399||495|
|Cash flows from (used in) operating activities|
|Operating cash flow||986||517|
|Change in net working capital and other changes||419||-164|
|Net cash generated from/(used in) operating activities (A)||1,405||353|
|Net cash from/(used in) investment in non-financial assets|
|Investment in assets held under concession||-939||-516|
|Purchases of property, plant and equipment||-38||-22|
|Purchases of other intangible assets||-89||-37|
|Increase in financial assets deriving from concession rights (related to capital expenditure)||8||1|
|Purchases of investments||-1||-|
|Investment in consolidated companies, including net debt assumed||-185||-|
|Proceeds from disposal of property, plant and equipment, intangible assets and unconsolidated investments||3||1|
|Net debt or funds of consolidated companies transferred as part of corporate transactions||-||-2|
|Net change in other non-current assets||2||-|
|Net cash from/(used in) investment in non-financial assets (B)||-1,239||-575|
|Net equity cash inflows/(outflows)|
|Dividends declared by the Group and payable to non-controlling shareholders||-11||-|
|Net equity cash inflows/(outflows) (C)||-11||-|
|Increase/(Decrease) in cash and cash equivalents during year (A+B+C)||155||-222|
|Other changes in net debt (D)||156||57|
|(Increase)/Decrease in net debt for year (A+B+C+D)||311||-165|
|Net debt at beginning of year||-8,557||-8,392|
|Net debt at end of year||-8,246||-8,557|
Approval of detailed design for Bologna By-pass
On 18 January 2022, the Services Conference approved the project of the Bologna By-pass, amounting to approximately €1.7 billion. Final approval of the detailed design is expected by the end of 2022, with the expropriation process, the movement of existing services interfering with construction and preparation of the various sites also due to begin during the year.
On 18 January 2022, Autostrade per l’Italia placed bonds worth €1,000 million under its Euro Medium Term Notes (EMTN) programme in two tranches of €500 million. The tranches have terms of 6 and 10 years. The proceeds from the issue will provide the Company with the financial resources needed to fully support our major investment and maintenance programmes, in addition to being used to fund development of the network digitalisation plan and for general corporate purposes.
Establishment of Elgea
A new company named Elgea SpA was established on 24 January 2022. The company, a wholly owned subsidiary of Autostrade per l’Italia, will produce renewable energy on behalf of the Group.
|Motorways||Engineering and construction|
|Operating cash flow (FFO)||957||504||453||23||-2||25|
|Innovation and technology||Other services|
|Operating cash flow (FFO)||12||11||1||-||4||-4|
|Consolidation adjustments||Total Autostrade per l'Italia Group|
|Operating cash flow (FFO)||-6||-||986||517|
Traffic in 2021 continued to be impacted by the effects of the pandemic, albeit to a lesser extent than in 2020. This was partly due to the progressive rollout of the country’s vaccination programme, whilst the performance in 2020 was severely affected by the spring lockdown. Traffic in 2021 continued to be affected by the pandemic, with a more marked improvement during the summer period and a subsequent slowdown towards the end of the year, as infections began to rise again.
Traffic on the Group’s network rose 23.0% in 2021 compared with the previous year but remained below pre-pandemic levels (down 10.3% compared with 2019).
Investment and projects
Despite the difficulties caused by the pandemic, and in compliance to the related safety regulations, capital expenditure on the motorways operated by the Group continued in 2021, with investment amounting to approximately €1 billion.
The “Genoa By-pass” is a complex project that aims to reduce traffic using the urban section of the A10 between the Genoa West (Port of Genoa) toll station and the Voltri district, by redirecting through traffic to a new motorway. The project will involve investment of approximately €4.3 billion* and most of the work involved in preparing for the start-up of work is now underway.
The Company is awaiting formal approval for the detailed design before proceeding to award the related contracts.* Amount provided for in the Economic and Financial Plan
The upgraded Bologna interchange will relieve congestion in the Bologna section of the network by widening 13 km of the existing motorway.
The project, involving total investment of €1.7 billion, was approved by the Services Conference on 18 January 2022. It is currently awaiting closure and subsequent approval of the detailed design by the MIMS.
The Bologna Bypass is the first motorway project in Europe to receive “Platinum” certification from Envision at the beginning of 2022 in recognition of the overall sustainability of the project.
Autostrade per l’Italia’s investment programme included in the Financial Plan contains a total commitment of €27.4 billion, including approximately €14.1 billion relating to the period from 2020 to 2038. This breaks down as follows:
|€bn||Value||To be performed 2020-38*|
|Major works in 1997 Agreement||7.4||1.0|
|Other investment included in 1997 Agreement|
|Other investment in major works**||2.0||1.5|
|Other investment in the existing network||2.6||0.5|
|Major works in fourth Addendum of 2002||4.2||0.4|
|Noise Abatement Plan (CIPE determination)||0.9||0.7|
|New projects in 2020 Financial Plan:|
|Widening to three/four lanes required by art.15 of Single Concession Arrangement, reducing congestion on the busiest sections of the network||2.4||2.3|
|New projects included in the network upgrade/modernisation plan designed to prolong the useful life of infrastructure||2.7||2.7|
|Work on the road network in Genoa and Liguria in the settlement agreement||0.9||0.9|
|Total investments on infrastructures operated under concession||27.4||14.1|
** Includes works associated with the Bologna Bypass.