Net financial position

The consolidated net financial position of the Holdings System at December 31, 2012 shows a negative balance of €525.9 million and a negative change of €200.1 million compared with the balance at the end of 2011 (-€325.8 million). The balance is composed as follows:

  12/31/2012 12/31/2011
€ million Current Non Current Total Current Non Current Total
Financial assets
235,8 110,1 345,9 485,6 115,3 600,9
Financial receivables from subsidiaries 1,8 0,0 1,8 0,0 0,0 0,0
Cash and cash equivalents 514,4 0,0 514,4 215,4 0,0 215,4
Total financial assets 752,0 110,1 862,1 701,0 115,3 816,3
EXOR bonds (25,0) (1.079,5) (1.104,5) (23,1) (845,8) (868,9)
Financial payables to associates (38,3) 0,0 (38,3) (48,3) 0,0 (48,3)
Bank debt and other financial liabilities (45,2) (200,0) (245,2) (24,9) (200,0) (224,9)
Total financial liabilities (108,5) (1.279,5) (1.388,0) (96,3) (1.045,8) (1.142,1)
Consolidated net financial position of the "Holdings System" 643,5 (1.169,4) (525,9) 604,7 (930,5) (325,8)

Download xls

NOTE

Current financial assets include bonds issued by leading issuers, listed on active and open markets, and mutual funds. Such financial securities, if held for trading, are measured at fair value on the basis of the trading price at year end or using the value determined by an independent third party in the case of mutual funds, translated, where appropriate, at the year-end exchange rates, with recognition of the fair value in the income statement. Derivative financial instruments are also used for the management of current financial assets.

Non-current financial assets include bonds issued by leading counterparties and listed on active and open markets which the Group intends, and is able, to hold until their natural repayment date as an investment for a part of its available cash so that it can receive a constant attractive flow of financial income. Such designation was made in accordance with IAS 39, paragraph 9.
Such financial instruments are free of whatsoever restriction and, therefore, can be monetized whenever the Group should so decide. Their classification as non-current in the financial position has been adopted only in view of the fact that their natural maturity date is 12 months beyond the closing date of the financial statements. There are no trading restrictions and their degree of liquidity or the degree to which they can be converted into cash is considered high.

Financial receivables from subsidiaries of €1.8 million refer to the amount drawn by the subsidiary Arenella Immobiliare S.r.l. on the loan made to it by EXOR, for a maximum amount of €5 million, due on December 31, 2013.

Cash and cash equivalents include demand deposits or short-term deposits, and readily negotiable money market instruments and bonds. Investments are spread over an appropriate number of counterparties since the primary objective is having investments which can readily be converted into cash. The counterparties are chosen according to their creditworthiness and reliability.

Bonds issued byEXOR are detailed as follows:

       Balance at December 31 (a)
Issue dateMaturity dateIssue price
CouponRate (%)CurrencyNominal amount millions
20122011
       € million
6/12/2007 6/12/2017 99,554 Annual fixed 5,375 750,0 (769,3) (768,7)
10/16/2012 10/16/2019 98,136 Annual fixed 4,750
150,0 (148,7) 0,0
12/7/2012 1/31/2025 97,844 Annual fixed 5,250 100,0 (98,1) 0,0
5/9/2011 5/9/2031 (b) 100,000 Semiannual fixed 2,80 Yen 10.000,0 (88,4) (100,2)
              (1.104,5) (868,9)
(a) Including the current portion. (b) To protect itself against currency fluctuations, a cross currency swap was put in place as a result of which EXOR pays a fixed rate of 6.012% per year.

Financial payables to associates of €38.3 million refer to the payable to Almacantar S.A. for the share of the capital increase subscribed by EXOR S.A. in 2011, but not yet paid.

Bank debt and other financial liabilities (non-current and current portion) consist of loans secured from leading banking institutions.

The negative change of €200.1 million is due to the following flows:

€ million     
Consolidated net financial position of the Holdings System at December 31, 2011    (325,8)
Dividends from investment holdings    156,1
Fiat Industrial S.p.A. 71,3   
SGS S.A. 63,2   
Fiat S.p.A. 10,8   
Gruppo Banca Leonardo S.p.A. 4,6   
C&W Group 2,0   
The Economist Newspaper Ltd 2,4   
Other 1,8   
Reimbursement of capital     
Gruppo Banca Leonardo S.p.A.     26,4
Disposals    209,4
Alpitour S.p.A. 182,0(a)
Banco BTG Pactual S.A. 21,7   
Other 5,7   
Investments    (438,5)
The Black  Ant Value Fund (300,0)   
Fiat S.p.A. (30,8)   
Fiat Industrial S.p.A. (16,1)   
Other (91,6)(b)
Dividends paid by EXOR S.p.A.    (80,1)
Other changes    (73,4)
Net general expenses (excluding the nominal cost of  EXOR stock option plan) (21,2)   
Non-recurring other income (expenses) and general expenses
(2,5)   
Net financial expenses (44,7)(c)
Other taxes and duties (2,8)   
Other net changes (2,2)(d)
Net change during the year    (200,1)
Consolidated net financial position of the Holdings System at December 31, 2012    (525,9)
(a) The net equivalent amount of the proceeds on the sale is equal to €225 million (€223.2 million net of incidental expenses); the difference of €41 million compared with the amount received of €184 million (€182 million net of incidental expenses paid) is represented by €15 million of non-current financial receivables (the Deferred Price) and €26 million of the current financial receivable (receivable compensated on October 10, 2012 with the purchase of the Arenella property). The receivable of €15 million is not included in the net financial position balance. See also note (a) on page 45 of this report. (b) Includes principally the investments in Paris Orléans S.A. for €25 million, Sequana S.A. for €17.7 million and Alpitour S.p.A. (formerly Seagull S.p.A.) for €10 million. (c) Includes interest income and other financial income (+€44.7 million), interest expenses and other financial expenses (-€100.9 million), fair value adjustments of current and non-current financial assets (+€14 million) net of the negative fair value adjustment of Vision convertible bonds (+€1.9 million) and other income (expenses) on non-current financial assets (-€4.4 million) therefore, not comprised in the balance of the net financial position. (d) Refers mainly to the parent EXOR S.p.A. and includes the measurement of interest rate and cross currency swaps on outstanding loans for -€21.1 million and the reimbursement of tax receivables from the tax authorities for €20.5 million.

At December 31, 2012, EXOR S.p.A. has irrevocable credit lines for €530 million, of which €425 million is due after December 31, 2013, as well as revocable credit lines for approximately €615 million.
Standard & Poor's has confirmed EXOR's long-term and short-term debt ratings (respectively, BBB+ and A-2), with a stable outlook.

Commercial Register No.64236277 Legal notes | Credits