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ENAV Group Consolidated Financial Statements

The other reserves arise from the capital grants received in 1996/2002 and originally
recognised net of deferred taxes that were paid. In this regard, the reserve became
available and was reclassified in previous periods under the item “other reserves”.
The translation reserve includes the exchange rate differences from the translation
of overseas subsidiaries’ financial statements and amounts to € 7,532 thousand. The
increase of € 4,104 thousand can mainly be attributed to the conversion of the
subsidiary Enav North Atlantic’s financial statements, due to the positive effect of
the Euro/Dollar exchange rate recorded at the end of the period.
The First Time Adoption (FTA) reserve includes the measurement valuation differences
in the asset and liability items arising upon the first time adoption of international
accounting standards.
The reserve for actuarial gains/(losses) on employees benefits incorporates the effects
of the actuarial gains and losses for post-employment benefits (TFR), stated net
of the tax effect, which at 31 December 2015 was a charge for € 8,728 thousand
(negative).
The cash flow hedge reserve, for € 2,693 thousand, includes the fair value change of
derivative financial instruments, which recorded an increase during the year for an
amount net of taxes of € 1,345 thousand. This difference is partly due to recording
the exchange rate gains relating to purchase of the dollars needed to pay the third
tranche for the investment in Aireon LLC.
Retained earnings/(accumulated losses) include the results recorded in previous
years by the group companies and net of the consolidated adjustments recorded in
previous periods.
The following table provides a reconciliation between the parent company’s equity
and consolidated equity.

31.12.2015 31.12.2014

Parent company Net Net Net Net
income equity income equity
Amortization of consolidation difference
49.817 1.120.005 38.827 1.283.673
Elimination of intragroup margins 14.603 (29.721) 0 (44.324)
Deferred tax assets on the elimination of intragroup (20.677) (19.892)
margins (785) 5.949 (1.495) 6.347
Conversion reserve (398) 7.532 477 3.429
(604) 0 (391)
Employee benefits reserve and FTA reserve 0 8.066 0 5.220
0
Net income of subsidiaries 2.846 1.090.550 2.197 1.234.062
66.083 40.006
Group total

116 ENAV - Annual financial report 2015