Page 118 - enav_27052016

ENAV Group Consolidated Financial Statements

Capital management
The objective of the Group in terms of capital management is to maximise value
for Shareholders and support future developments. The Group manages its financing
sheet structure and makes adjustments based on economic conditions and the
requirements of financial covenants. The Group has also set itself the objective of
maintaining adequate capital levels, which will allow access to external funding,
while at the same time reducing the cost of debt, and adequately support the
Group’s development activity.
No changes were made to the objectives, policies and procedures for managing
capital during the periods ended 31 December 2015 and 2014.

18. Provisions for risks and charges

The provisions for risks and charges total € 14,151 thousand, of which the current
portion amounts to € 7,812 thousand. The following changes occurred during the
period:

Provision for risks from personnel litigation 31.12.2014 Increases Decreases 31.12.2015
Provision for risks from other disputes 3.168 1.952 (1.050) 4.070
Provisions for other risks 6.217 185 (1.313) 5.089
Total provisions 3.200 1.792 0 4.992
3.929 (2.363)
12.585 14.151

The provision for risks from personnel litigation, with a current portion of € 2,908
thousand, decreased during the period for € 1,050 thousand with the termination
of disputes following settlements or cases where the Court found judgment against
the Company. The increase of € 1,952 thousand refers to disputes initiated in 2015
for matters relating to employment, where the risk of an adverse outcome has been
assessed as being probable. At 31 December 2015, the total value for judicial claim
requests relating to pending disputes, where the risk of an adverse outcome has
being assessed as being possible has been quantified by the Group’s lawyers at 4
million.
The provision for risks from other disputes, of which the current portion amounts to
€ 4,904 thousand, decreased during the period by € 1,313 thousand subsequent to
two disputes being closed, of which one had a favourable outcome for the Parent
Company with a consequent release of provision against the Income Statement for
€ 670 thousand and another, in which the judgement from the Appeal Court went
against the parent company for € 643 thousand. The increase of € 185 thousand
refers to a prudential reserve based on a recent Appeal Court judgement that imposes
the above amount on the Parent Company. The provision also includes a potential
liability arising from the termination of the contract for the supply of meteorological
systems for modernising the Palermo airport system, due to the unavailability of
some of the materials included in the contract.

ENAV - Annual financial report 2015 117