Review of the separate financial statements

EXOR S.p.A. closed the year 2012 with a profit of €150.5 million (€58.7 million in 2011).

The increase in the profit for the year is due to the gain realized on the sale of Alpitour (€135.9 million) compared with the loss realized in 2011 on the sale of the investment in Intesa Sanpaolo (€8 million) and the impairment loss on the subsidiary Juventus Football Club (€56.2 million), lower recurring expenses and non-deductible VAT (€1.2 million), the positive change in taxes (€2.1 million) net of lower dividends received from investments (-€88.9  million), higher net financial expenses (-€20.8 million) and lower net non-recurring income (-€1.9 million).

The separate condensed income statement and statement of financial position, as well as comments on the most significant line items are presented below.

EXOR S.p.A. – Condensed Income Statement

€ million Note 2012 2011 Change
Dividends from investments 1 82,8 171,7 (88,9)
Gains (losses) on disposals and impairments of investments 2 135,9 (64,2) 200,1
Net financial expenses 3 (48,5) (27,7) (20,08)
Net general expenses 4 (19,1) (19,8) 0,7
Non-recurring other income (expenses) and general expenses 5 0,4 2,3 (1,9)
Non-deductible VAT and other taxes and duties   (1,5) (2,0) 0,5
Profit before income taxes   150,0 60,3 89,7
Income taxes   0,5 (1,6) 2,1
Profit for the year   150,5 58,7 91,8

Download xls

EXOR S.p.A. - Condensed Statement of Financial Position

    12/31/2012 12/31/2011  
€ million Note Amount % Amount % Change
Investments and other financial assets available for sale
6 4.252,6 86,7 3.817,3 83,6 435,3
Other non-current financial assets  
125,4 2,6 115,8 2,5 9,6
Current financial assets  
518,1 10,6 529,6 11,6 (11,5)
Financial receivables from subsidiaries  
1,8 0,0 0,0 0,0 1,8
Tax Receivables  
4,5 0,1 25,1 0,5 (20,6)
Other current and non-current assets  
1,4 0,0 1,7 0,0 (0,3)
Non-current assets held for sale
0,0 0,0 82,5 1,8 (82,5)
Total Assets   4.903,8 100,0 4.572,0 100,0 331,8
Equity 7 3.519,6 71,8 3.445,4 75,3 74,2
Bonds
 
1.079,5 22,0 845,8 18,5 233,7
Current and non-current bank debt
 
200,0 4,1 200,0 4,4 0,0
Other current financial liabilities  
70,3 1,4 48,1 1,1 22,2
Provisions and other current and non-current liabilities  
34,4 0,7 32,7 0,7 1,7
Total Equity and Liabilities   4.903,8 100,0 4.572,0 100,0 331,8

Download xls

Net financial position

At December 31, 2012, the net financial position is a negative €718.9 million increasing from €448.5 million at the end of 2011, with a negative change of €270.64 million. The balance is composed as follows:

    12/31/2012 12/31/2011
€ million CurrentNon
Current
  Total Current   Non
Current
  Total
Financial assets 180,2 110,4 (a) 290,6 435,3 (a) 115,7 (a) 551,0
Financial receivables from subsidiary 1,8 0,0   1,8 0,0   0,0   0,0
Cash and cash equivalents 338,5 0,0   338,5 94,2   0,0   94,2
Total financial assets 520,5 110,4   630,9 529,5   115,7   645,2
EXOR bonds 2011-2031 (0,7) (87,7)   (88,4) (0,7)   (99,5)   (100,2)
EXOR bonds 2018-2025 (0,4) (97,7)   (98,1) 0,0   0,0   0,0
EXOR bonds 2012-2019 (1,5) (147,2)   (148,7) 0,0   0,0   0,0
EXOR bonds 2007-2017 (22,4) (746,9)   (769,3) (22,4)   (746,2)   (768,6)
Bank debt and other financial liabilities
(45,3) (200,0)   (245,3) (24,9)   (200,0)   (224,9)
Total financial liabilities (70,3) (1.279,5)   (1.349,8) (48,0)   (1.045,7)   (1.093,7)
Net financial position of EXOR S.p.A. 450,2 (1.169,1)   (718,9) 481,5   (930,0)   (448,5)
(a) Of which €109.5 million at December 31, 2012 (€77 million current and €114.9 million non-current at December 31, 2011) relates to bonds issued by leading counterparties, listed on active and open markets which the Company intends, and is able, to hold until their natural repayment date as an investment for a part of its available cash, in order to ensure a constant attractive flow of financial income. This designation was decided in accordance with IAS 39, paragraph 9. Such financial instruments are free of whatsoever restriction and, therefore, can be monetized whenever the Company 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.

The negative change of €270.4 million in 2012 is due to the following cash flows:

€ million      
Net financial position at December 31, 2011     (448,5)
Dividends received from investment holdings     82,8
- Fiat  Industrial S.p.A. 71,3    
- Fiat S.p.A. 10,8    
- Emittenti Titoli 0,0 (a)  
- Rho Immobiliare Fund 0,7    
Investments     (362,7)
- Fiat  Industrial S.p.A.  (16,1)    
- Fiat S.p.A.   (30,8)    
- Seagull S.p.A. (now Alpitour S.p.A.) (10,0)    
- Arenella Immobiliare S.r.l. (0,1)    
- The Black Ant Value Fund  (300,0)    
- Juventus Football Club S.p.A. (5,7)    
Sale of Alpitour S.p.A.     182,0
Dividends paid by EXOR S.p.A.     (80,1)
Other changes     (92,4)
- Net general expenses (excluding the figurative cost of EXOR's stock option plans) (16,0)    
- Non-recurring other income (expenses) and general expenses 0,4    
- Indirect taxes and duties (1,5)    
- Net financial expenses (49,3)    
- Collection of receivables from the tax authorities 20,5    
- Other net changes (46,5) (b)  
Net change during the year     (270,4)
Net financial position at December 31, 2012     (718,9)
(a) Equal to €35 thousand. (b) Other net changes include the reclassification of current and non-current assets (€24.2 million), the valuation of interest rate swaps on loans for -€21.1 million and the variation of non-financial receivables and payables for -€1.2 million.

Reconciliation between the separate financial statements of EXOR S.p.A. and the consolidated financial statements of the Group

The following reconciliation of the profit for the year and equity in the separate financial statements of EXOR S.p.A. for the years ended December 31, 2012 and December 31, 2011 and the corresponding figures in the consolidated financial statements of the EXOR Group at the same dates are presented as required by Consob Communication 6064293 of July 28, 2006.

  Profit (Loss) Equity
€ million 2012 2011 12/31/2012 12/31/2011
Separate financial statements of EXOR S.p.A. 150 59 3.520 3.445
Difference between the carrying amounts of investments and corresponding equity at the end of the prior year     2.958 2.522
et balance between the changes during the year in the equity of consolidated companies and companies accounted for by the equity method (excluding the result) 
    445 (28)
Share of the profit (loss) of consolidated companies and companies accounted for by the equity method, net of consolidation adjustments 300 514 300 514
Elimination of dividends received from consolidated companies and companies accounted for by the equity method
(84) (176) (84) (176)
Adjustments of gains/losses on disposals and impairments of investments 34 108 34 108
Other consolidation adjustments (2) (1) (9) 18
Consolidated financial statements of the EXOR Group (attributable to the owners of the parent) 398 504 7.164 6.403
Commercial Register No.64236277 Legal notes | Credits