Page 239 - enav_27052016

ENAV S.p.A. Financial Statement

Over the longer term, liquidity risk is mitigated by implementing a strategy of
managing debt, based on a diversified structure of funding sources, in terms of the
nature of the loans and the counterparties involved that recourse is made to cover
the Group’s financial requirements, and by having a balanced debt maturity profile.
On the basis of general guidelines set by senior management, the administration,
finance and control department establishes the short-term and medium/long-term
financial structure and the way in which the relative cash flows will be managed. The
Department has made choices that are mainly directed at: i) ensuring that adequate
financial resources are available to cover expected short-term commitments, which
are systematically monitored through treasury planning; ii) maintaining a prudential
liquidity buffer that is sufficient to cover any unexpected commitments; iii) ensuring
a level of flexibility in ENAV’s medium-long term investment contracts for the
technology and infrastructure upgrading on flight assistance systems.
ENAV’s gross financial exposure at 31 December 2015 stood at € 363 million, and
is represented by debt in respect of banks for medium-long term funding for € 181
million, and subscribers to the bond issued on 04 August 2015, maturing on 04
August 2022, for a principal amount of € 180 million.
The table below shows the maturity analysis for medium-long term bank funding
and the bond represented at nominal value, without the effect resulting from the
amortised cost method.

Lender Type Outstanding <1 year Between 1 Between 3
Medio Credito Centrale balance at 3.333 and 2 years and 5 years > 5 years
31.12.2015

Medium/long-term - 5 years 8.333 3.333 1.667 0

Unicredit Medium/long-term - 5 years 24.000 8.000 8.000 8.000 0

Unicredit Medium/long-term - 5 years 50.000 20.000 20.000 10.000 0

EIB - European Investment Bank Medium/long-term - 15 years 100.000 0 0 20.287 79.713

Bond loans Medium/long-term - 7 years 180.000 0 0 0 180.000

Total 362.333 31.333 31.333 39.954 259.713

The financing contracts shown above entail general commitments and covenants
for the Company that may also be negative. While in line with market practices for
financing contracts for similar amounts and types, these could limit the Company’s
operations. Specifically, some contracts envisage early repayment if certain default
events should arise. If this should happen, the Company could be obliged to pay back
the relevant funding in full and with immediate effect.

238 ENAV - Annual financial report 2015