The Board of Directors of IGD S.p.A. – a BLUE CHIP company listed on the MIDEX segment of the Italian Stock Exchange, operating in the retail real estate sector – met today to examine figures for FY 2006, which proved to be positive and in line with forecasts.

FY 2006 closed with a value of production of € 105.99 million, up by 99% compared to € 53.16 million as at 31 December 2005.

More specifically, the value of production also includes a profit of € 43.06 million resulting from the sale of the addition onto the Centro Leonardo shopping center in Imola, which took place in November. Although not falling under IGD’s typical corporate strategy, this particular transaction generated a capital gain of about € 3.5 million. Considering this operation’s net value alone, the value of production would be around € 66 million with a year-on-year increase of approximately 25% if compared to € 53 million in FY 2005.

The gross operating margin (EBITDA) – € 43.08 million – grew by 30% compared to € 33.24 million in FY 2005.

The operating margin (EBIT) – € 99.55 million – grew by 50% compared to € 66.35 million in FY 2005.

The pre-tax result amounted to € 91.58 million, up 47% compared to € 62.47 million as at 31 December 2005.

Net profit stood at € 56.68 million. It should be mentioned that in FY 2005, IGD reached a net profit of € 81.66 million because it availed itself of law 266/2005 aimed at revaluing corporate assets from a fiscal viewpoint by paying a 12% lieu tax. For this reason, the income statement included a positive adjustment for differed taxes accrued in earlier fiscal years.
Net financial indebtedness was € 338.06 million compared to € 353.80 million of 30 September 2006. The decrease in the net financial position is primarily due to earnings from the sale of the aforementioned shopping center addition.

“The positive figures for 2006,“ states Filippo Carbonari CEO of Igd, “result from both the successful management of the current property portfolio, as well as the growth achieved over 2005 and 2006.”

The Board of Directors also proposed the distribution of a dividend of 0.035 to be discussed at the next Shareholders’ Meeting, which will be held on April 23, instead of the 26, as originally planned. The coupon detachment will go into effect on April 30, while payment will take place on May 4.

It should also be mentioned that, in compliance with the provisions of art. 82 of the Issuers Regulations adopted through Consob Ruling no. 11971 after switching from the Star segment to Midex, the company will be exempt from issuing quarterly reports for the periods expiring at the end of each half-year. As a consequence, there are some changes on the financial schedule.

The BOD will not be meeting on 9 August to approve the second quarterly report; however, a meeting for the approval of the first half-year report will take place on 12 September 2007 instead of on the 27, as originally stated.