05/14/2018

Alba reached a net profit of 30.4 M€ in the first quarter of 2018

Corporación Financiera Alba reached a net profit of 30.4 M€ in the first quarter of 2018, compared to 380.0 M€ in the same period of the previous year. This decrease is mainly due (338.6 M€) to the results of the first quarter of 2017 that included the capital gains obtained on the ACS sales made in that period, and also the revaluation at market prices of the rest of the shareholding in ACS as it was accounted as Non-current assets held for sale.

The Net Asset Value (NAV) stood at 4,086.8 M€ on 31 March 2018, equivalent to 70.17 € per share. The share price of Alba on the same date, 49.10 €, represents a discount of 30.0% compared to NAV per share. The NAV, both in absolute terms and per share, has increased by 0.9% in the first quarter.

In the first three months of the year, Alba invested 21.9 M€ in different stakes and made various asset sales for a total amount of 103.6 M€, raising its net cash position to 887.0 M€ on 31 March 2018.

The investments made by Alba in the first quarter of 2018 were the following:

• Purchase of 0.50% of Viscofan for 12.5 M€, increasing the stake in this company to 11.82%.

• Purchase, through Deyá Capital, of a 3.7% stake in MonBake for 9.4 M€. MonBake is the new group resulting from the acquisition, by funds managed by Ardian, of Panasa and Bellsolá, two of the main Spanish companies in the bread and deep-frozen bakery segment. This reinvestment is part of the agreements reached with Ardian in the sale of Panasa.

On the other hand, Alba made two divestments in the first quarter of the year:

• Sale, through Deyá Capital, of 26.5% in Panasa for 88.4 M€. As a result of this sale, which was announced on November 2017, Alba has obtained, since the initial investment made in February 2011, a cash-on-cash return of 3.3 times the investment and an IRR of 20% per year.

• Sale of a property in Madrid for 15.2 M€.

It should be noted that, on 22 February, Alba announced the agreement to indirectly invest 500 M€ in Rioja Bidco Shareholdings, a company that will acquire to Repsol, subject to certain conditions, its 20.07% stake in Gas Natural and that will represent for Alba an indirect participation of 5,17% of said Company. Alba expects this transaction to be closed in May.

Additionally, on May 11, the Board of Directors agreed on the announcement of the ordinary Annual General Meeting, which will be held on June 18 at the first notice and in which, among other points, the distribution of a complementary dividend of 0.50 euros gross per share charged to the net profit of 2017 will be submitted to the shareholders for the approval.

Alba’s portfolio at 31 March 2018 was as follows: