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ENAV S.p.A. Financial Statement

Investments in subsidiaries also includes the 100% interest in Techno Sky amounting
to € 99,224 thousand (€ 113,827 thousand at 31 December 2014). The decrease for
the period relates to the impairment loss resulting from the difference between the
book value and the relative recoverable equity value, estimated on the basis of the
impairment test carried out by management at the reporting date. The recoverable
value was estimated based on the cash flows drawn from the new economic-
financial plan 2016–2019, prepared by the subsidiary Techno Sky, discounting cash
flows according to the Discounted Cash Flow (DCF) method. The discount rate used
is the WACC (Weighted Average Cost of Capital) at 7.2%, with a growth rate of
the operational cash flows in nominal terms of 1.5%, in line with current reference
macro-economic prospects.
In this regard, we note that management conducted a comparative analysis on the
margin levels identified for a panel of listed and unlisted companies comparable
to Techno Sky. The study showed that the EBITDA margin assumed in the plan
for Techno Sky currently tends towards the average sector margins. Based on this
consideration, management decided to use as an estimate for the recoverable value,
the value in use estimated on the basis of the cash flows derived from the new
economic-financial plan 2016–2019 prepared by the subsidiary, without conducting
any additional normalisations on the expected margin levels.
For the sensitivity analysis, and assuming a 0.5% increase in the WACC and a growth
rate remaining of 1.5%, the recoverable value on the investment would come down
to € 89,913 thousand. Assuming a 0.5% increase in the WACC and a growth rate
of 1%, the recoverable value for the investment would come down to € 82,991
thousand.
In addition, investments in subsidiaries also include the 60% holding in the SICTA
Consortium and the 100% interest in Enav Asia Pacific, with headquarters in Kuala
Lumpur, Malaysia.
The investment in other companies relates to the 16.67% interest in the share
capital of the French registered company ESSP SaS, which is held by the main
European service providers and manages the EGNOS satellite navigation system and
the provision of the related services, for € 167 thousand. The dividends resolved by
ESSP for € 250 thousand were received in June 2015.
Reference should be made to the specific paragraph in the Report on Operations for
comments on the performance of subsidiaries in 2015.

ENAV - Annual financial report 2015 199