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ENAV Group Consolidated Financial Statements

different types of derivative instruments are used, especially swaps and forwards, as
well as currency options. No speculative activities are however permitted within the
scope of these policies. With regard to the fair value measurement of derivatives on
exchange rates, these are calculated on the basis of standard valuation algorithms
and on market quotations/contributions provided by a leading public info-provider.
It should be noted nonetheless that the risk arising from income accrued in a
currency other than the Euro, or from converting the assets and liabilities of ENAV’s
subsidiaries that prepare their financial statements in currencies other than the Euro,
is not normally subject to hedging.

Litigation risks
Litigation of a fiscal, administrative, civil and labour nature is followed by the
competent functions of the ENAV Group, which for the preparation of these financial
statements have drawn up a complete and exhaustive description of the various civil,
administrative and labour law proceedings. The Group has carried out an accurate
assessment of the risk of an adverse outcome in these proceedings, from which the
need emerged to prudently set up specific provisions for those disputes in which
an adverse outcome is considered probable and is reasonably quantifiable. In those
cases where an adverse outcome is only considered possible, no specific provisions
were recognized, in accordance with the accounting standards used to prepare the
financial statements.
At the current state, the settlement of pending litigation should not result in
significant expenses for the Group, in addition what has already been accrued in the
provisions at 31 December 2015.

Litigation abroad

This case, dating back some time and still pending in the investigation phase at the
Court of Buenos Aires, refers to a claim for damages for the failure to pay services
rendered allegedly provided by a consultant in the context of a mandate conferred
by the Parent Company on 1 June 2001 to establish business relations with Argentine
institutions relating to the introduction of a civil air traffic control system into the
country. No provision has been recorded as this is not deemed a probable risk by the
Parent Company’s lawyers.

Litigation in Italy

Proceedings for debt recovery from suppliers and airport management companies.
Legal action initiated regarding cases pending against suppliers and airport
management companies that are insolvent, bankrupt or under other insolvency
procedures continue. These refer to receivables where it was not possible to recover
using out-of-court procedures. Some of these positions have been written-down

Litigation in respect of suppliers

These disputes refer mainly to opposing legal claims from suppliers or contractors
that the Parent Company deems to be unfounded (regarding, for example, alleged
claims to be invoiced or price reviews, or requests for damages or claims for damages

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