The Poste Italiane Group’s net invested capital at 31 December 2017 amounts to €1,983 million (€1,909 million at 31 December 2016).
NET FUNDS
Non-current assets total €3,077 million, marking an increase of €210 million compared with the end of 2016. This primarily reflects acquisition of the investment in FSIA Investimenti Srl, partially offset by the negative effect of the movements in non-current assets (capital expenditure of €467 million, offset by depreciation, amortisation and impairments of €545 million).
The Poste Italiane Group’s capital expenditure amounted to €467 million in 2017 (up €16 million or 3.5% on 2016) and was designed to support achievement of the objectives in the “Deliver 2022” Strategic Plan. Most expenditure is focused on Mail, Parcels and Distribution services, where the upgrade of the Group’s technological resources and its logistics network continued, with a view to boosting overall sorting capacity and responding to the growth in volumes driven by e-commerce, as well as to improving the quality of service provided. The process of renewing the hardware used in post offices and the evolution and enhancement of the applications used in supplying services also continued.
| at 31 December (€m) | 2017 | 2016 | Increase/(decrease) | |
|---|---|---|---|---|
| Non-current assets: | ||||
| Property, plant and equipment | 2,001 | 2,080 | (79) | -3.8% |
| Investment property | 52 | 56 | (4) | -7.1% |
| Intangible assets | 516 | 513 | 3 | 0.6% |
| Non-current financial assets | 508 | 218 | 290 | n/s |
| Total non-current assets | 3,077 | 2,867 | 210 | 7.3% |
| Working capital: | ||||
| Inventories | 138 | 137 | 1 | 0.7% |
| Trade receivables and other receivables and assets | 6,032 | 5,843 | 189 | 3.2% |
| Trade payables and other liabilities | (4,788) | (4,724) | (64) | 1.4% |
| Current tax assets and liabilities | 70 | (73) | 143 | n/s |
| Total working capital: (b) | 1,452 | 1,183 | 269 | 22.7% |
| Gross invested capital (a+b) | 4,529 | 4,050 | 479 | 11.8% |
| Provisions for risks and charges | (1,595) | (1,507) | (88) | 5.8% |
| Provisions for employee termination benefits and pension plans | (1,274) | (1,347) | 73 | -5.4% |
| Deferred tax assets/(liabilities) | 323 | 53 | 270 | n/s |
| Non-current assets and disposal groups held for sale and liabilities related to assets held for sale | - | 660 | (660) | n/s |
| Net invested capital | 1,983 | 1,909 | 74 | 3.9% |
| Equity | 7,550 | 8,134 | (584) | -7.2% |
| Net (funds)/debt | (5,567) | (6,225) | 658 | -10.6% |
n/s: not significant
FINANCIAL POSITION
Total net funds at 31 December 2017 amount to €5,567 million, down on the figure for 31 December 2016 (when net funds amounted to €6,225 million). This primarily reflects the reduction in the fair value of available-for-sale financial assets (€991 million). The fair value reserve for available-for-sale financial assets amounts to €520 million before tax (€1,512 million at 31 December 2016).
| At 31 December 2016 (€m) | Mail, Parcels & Distribution | Payments, Mobile & Digital | Financial Services | Insurance Services | Eliminations | Consolidated amount |
|---|---|---|---|---|---|---|
| Financial liabilities | 2,087 | 2,284 | 59,219 | 1,012 | (3,681) | 60,921 |
| Technical provisions for insurance business* | - | - | - | 113,612 | - | 113,612 |
| Financial assets | (1,236) | (2,609) | (58,529) | (115,596) | 3,608 | (174,362) |
| Net debt/(net funds) | 851 | (325) | 690 | (972) | (73) | 171 |
| Cash and deposits attributable to BancoPosta | - | - | (2,494) | - | - | (2,494) |
| Cash and cash equivalents | (1,556) | (21) | (1,320) | (1,324) | 319 | (3,902) |
| Net (funds)/debt | (705) | (346) | (3,124) | (2,296) | 246 | (6,225) |
* Technical provisions for the insurance business are shown net of technical provisions ceded to reinsurers.
| At 31 December 2017 (€m) | Mail, Parcels and Distribution | Payments, Mobile & Digital | Financial Services | Insurance Services | Eliminations | Consolidated amount |
|---|---|---|---|---|---|---|
| Financial liabilities | 2,249 | 2,970 | 62,063 | 1,017 | (5,055) | 63,244 |
| Technical provisions for insurance business* | - | - | - | 123,579 | - | 123,579 |
| Financial assets | (1,097) | (3,283) | (60,688) | (125,860) | 4,162 | (186,766) |
| Net debt/(net funds) | 1,152 | (313) | 1,375 | (1,264) | (893) | 57 |
| Cash and deposits attributable to BancoPosta | - | - | (3,196) | - | - | (3,196) |
| Cash and cash equivalents | (1,997) | (21) | (396) | (907) | 893 | (2,428) |
| Net (funds)/debt | (845) | (334) | (2,217) | (2,171) | - | (5,567) |
* Technical provisions for the insurance business are shown net of technical provisions ceded to reinsurers.