The Poste Italiane Group’s net invested capital amounts to €3,677 million (€3,859 million at 31 December 2013), 100% financed by equity.
NET INVESTED CAPITAL
In addition to movements in non-current assets and working capital, the reduction in net invested capital at 31 December 2014 reflects:
- a reduction of €513 million in the net balance of deferred tax assets/(liabilities), primarily due to the increase in the fair value reserve for BancoPosta’s investments in securities, which generated an increase in deferred tax liabilities;
- an increase of €168 million in provisions for risks and charges, primarily due to the effect of the expected liabilities for restructuring costs.
| at 31 December (€m) | 2013 | 2014 | Increase/ (decrease) |
|---|---|---|---|
| Non-current assets | 3,145 | 2,893 | (252) |
| Working capital | 3,052 | 3,941 | 889 |
| Provisions for risks and charges | (1,166) | (1,334) | (168) |
| Employee termination benefits and pension plans | (1,340) | (1,478) | (138) |
| Deferred tax assets/(liabilities) | 168 | (345) | (513) |
| Net invested capital | 3,859 | 3,677 | (182) |
NET FUNDS
Net funds at 31 December 2014 amount to €4,741 million (net funds of €3,257 million at the end of 2013), reflecting:
- the results of the fair value measurement of investments in available-for-sale financial assets (approximately €2,650 million);
- cash subject to restrictions, as shown in the following table, as attributable to technical provisions for the insurance business or subject to investment restrictions (BancoPosta RFC);
- net financial assets held by Poste Vita and Banca del Mezzogiorno-MedioCredito Centrale, which are subject to supervisory capital requirements (approximately €1,900 million).
| at 31 December (€m) | 2013 | 2014 |
|---|---|---|
| Financial liabilities | 51,770 | 55,358 |
| Technical provisions for insurance business | 68,005 | 87,219 |
| Financial assets | (118,467) | (142,687) |
| Technical provisions for claims attributable to reinsurers | (40) | (54) |
| Net financial liabilities/(assets) | 1,268 | (164) |
| Cash and deposits attributable to BancoPosta | (3,080) | (2,873) |
| Cash and cash equivalents | (1,445) | (1,704) |
| of which: | ||
| - Adjusted cash and cash equivalents | (559) | (778) |
| - Cash subject to investment restrictions | (262) | (511) |
| - Cash attributable to technical provisions for insurance business | (624) | (415) |
| Net debt/(funds) | (3,257) | (4,741) |