Risanamento presents half-year results (IT)

In the first half of 2006 Market value of the real estate: €4.3 billion Operating profit: +32% of production value Net profit: €5.5 million Stock market capitalisation: €1.585 billion as at 13/09/2006.

The Board of Directors of Risanamento S.p.A. approved the Half-year Report as at 30 June 2006, which highlights the following results at consolidated level:

Value of production is €128.5 million (€424.9 million in the first half of 2005);

• Operating result is €41.4 million, equivalent to 32% of the production value, in line with the result of 2005 in percentage terms (€184.4 million in the first half of 2005);

• Net profit is €5.5 million (€143.6 million in the first half of 2005);

• The net financial indebtedness, amounting to €1,548 million (€1,228.1 as at 31 December 2005), includes the significant property investments made in the period, the most important one being the one in Paris (Blvd Haussmann);

• the market value of the real estate is €4.3 billion versus a book value of €2.2 billion.
The economic and financial results achieved in the first half of the year are in line with the development programmes. We are therefore confident that the results for the entire 2006 will show an improvement on those related to the first half of the year.

It is important to highlight that the comparison with the first half of 2005 is not significant as the qualitative and quantitative contexts were very different and had led to a considerable number of sales in the early months of last year.

The market value of the real estate, €2.1 million higher than the book value, was calculated on the basis of the reports prepared by REAG S.p.A. and DTZ Italia S.p.A., two independent valuation companies.
The main sales concluded in the first half of the year were:

• 100% of the shareholding in Risanamento & Sviluppo Napoli S.p.A. for €28.5 million;
• 51% of the shareholding in Geolidro S.r.l. for €9 million;
• 15% of the shareholding in Inmobiliaria Urbanitas for €7.5 million
• Rho initiative for €35 million;
• area with non-commercial use located in Chivasso for €15 million;
• Real estate property situated in Naples (Via De Roberto) for €6 million.

The main real estate investments made in the first half of the year were:

• 50% of Diaz Immobiliare, owner of a prestigious property that was valuated €94 million;
• a prestigious property located in the centre of Paris acquired for €230 million. The property has an overall surface of about 20,000 sq m and is situated on 19bis-23 Boulevard Haussmann, at the corner with 16–26 Rue de la Chaussée;
• 50% of Mariner, a company that owns a property in Milan, Via Bagutta 8, valued about €90 million;
• 50% of Immobile Turati, a company that owns a prestigious property in the centre of Milan, in Via Turati 6/8, valued about €104 million;

Moving on to project development activities, the construction of Milan Santa Giulia started last March with the building of the European headquarters of SKY.
As for the former Falck Area, demolition and land regeneration activities continued during the first half of the year. The preliminary soil and subsoil regeneration plan were presented to the Ministry of the Environment, whereas the preliminary proposal of Integrated Intervention Plan was submitted to the Municipality of Sesto San Giovanni.
Adoption of the international accounting standards

Since 1 January 2005, following the coming into effect of the European Regulation No. 1606 of July 2002, the Risanamento Group has been drawing up its consolidated financial statements according to the IAS/IFRS, while the Parent Company Risanamento S.p.A. adopted the aforementioned standards on 1 January 2006, in compliance with said regulation.
Therefore, the Half-year Report was drawn up, as the previous one, in accordance with the international accounting standards.

Source: Risanamento

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