Net financial position

The consolidated net financial position of the Holdings System at March 31, 2012 shows a negative balance of €363.8 million and a negative change of €38 million compared to the balance at the end of 2011 (-€325.8 million). The balance is composed as follows:

  3/31/2012 12/31/2011
€ million Current Non current Total Current Non current Total
Financial assets 375.3 115.1 490.4 485.6 115.3 600.9
Recevables for withholdings to be collected  on dividends 12.6 0.0 12.6 0.0 0.0 0.0
Cash and cash equivalents 417.3 0.0 417.3 215.4 0.0 215.4
Total financial assets 805.2 115.1 920.3 701.0 115.3 816.3
EXOR bonds 2011-2031 (2.0) (91.0) (93.0) (0.7) (99.5) (100.2)
EXOR bonds 2007-2017 (32.5) (746.4) (778.9) (22.4) (746.3) (768.7)
Financial payables to associates (48.3) 0.0 (48.3) (48.3) 0.0 (48.3)
Bank debt and other financial liabilities (163.9) (200.0) (363.9) (24.9) (200.0) (224.9)
Total financial liabilities (246.7) (1,037.4) (1,284.1) (96.3) (1,045.8) (1,142.1)
Consolidated net financial position of the "Holdings System" 558.5 (922.3) (363.8) 604.7 (930.5) (325.8)

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Current financial assets include equity securities and bonds issued by leading issuers, both of which are listed on active regulated markets, and collective investment instruments. Such financial securities, if held for trading, are measured at fair value on the basis of the trading price at period end or using the value determined by an independent third party in the case of funds, translated, if appropriate, at the period-end exchange rates, with recognition of the fair value in profit or loss; if held-to-maturity, they are measured at amortized cost. 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 regulated 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.

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.

Financial payables to associates of €48.3 million refer to the payable to Almacantar S.A. for the share of capital subscribed in 2011, but not yet paid.

The negative change of €38 million is due to the following flows:

€ million    
Net financial position of the Holdings System at December 31, 2011   (325.8)
Dividends received from SGS S.A.   63.2
 Investments   (62.2)
- Juventus Football Club S.p.A. (Purchase of rights not exercised and subscription of 3.765% of share capital) (5.7)  
- Fiat Industrial S.p.A. (3.54% of savings share capital) (16.0)  
- Fiat S.p.A. (9.51% of savings capital) (30.8)  
- NoCo B L.P.  (7.0)  
- BDT Capital Partners Fund I L.P. (2.7)  
Other changes   (39.0)
- Net general expenses (excluding the figurative cost of  EXOR stock option plan) (4.9)  
- Non-recurring other income (expenses) and general expenses  (0.2)  
- Indirect taxes and duties (0.6)  
- Net financial expenses (a) (13.0)  
- Income taxes paid (9.5)  
- Other net changes (10.8)  (b)
Net change during the period   (38.0)
Consolidated net financial position of the Holdings System at March 31, 2012   (363.8)
(a) Includes interest income and other financial income (+€18.1 million), interest expenses and other financial expenses (-€27.9 million), fair value adjustments of current and non-current financial assets (-€2.9 million) net of the negative fair value adjustment of Vision convertible bonds at the period-end exchange rate (+€0.3 million) and other income on non-current financial assets (-€0.6 million) therefore, not included in the net financial position balance. (b) Principally refers to the parent EXOR and includes the measurement of interest rate swaps on loans for -€6.7 million and the change in non-financial receivables and payables for -€3.6 million.

At March 31, 2012, EXOR S.p.A. has irrevocable credit lines for €620 million, of which €420 million is due after March 31, 2013, as well as revocable credit lines for approximately €615 million.

On November 23, 2011, Standard & Poor’s affirmed EXOR’s long-term and short-term debt ratings (respectively “BBB+” and “A-2”) and raised the outlook from “negative” to “stable”.

Commercial Register No.64236277 Legal notes | Credits