Economic/financial results

The EXOR Group ends the year 2013 with a consolidated profit of €2,084.5 million; the year 2012 closed with a consolidated profit of €298.3 million. The positive change of €1,786.2 million derives principally from higher net gains realized during 2013 of €1,520.4 million (of which €1,534 million relates to the sale of the entire investment in SGS), the increase in the share of the results of investments of €264.1 million and the reduction in net financial expenses of €12 million, compensated in part by lower dividends from investments (-€10.3 million).

The consolidated equity attributable to owners of the parent amounts to €6,947.4 million at December 31, 2013, with a net increase of €778.6 million compared to €6,168.8 million at the end of 2012. Further details are provided in note 10.

The positive balance of the consolidated net financial position of the Holdings System at December 31, 2013 is €1,281.2 million, with an increase of €1,807.1 million compared to the negative balance of €525.9 million at year-end 2012. Further details are provided in note 11.

The shortened consolidated income statement and statement of financial position and notes on the most significant line items are presented below.

NOTE

Through the subsidiary EXOR S.A., EXOR holds some important investments and controls some companies which contribute to the Group's investment and financial resource management activities. These companies constitute the so-called Holdings System (the complete list of these companies is presented below).

EXOR presents annual consolidated financial statements (statement of financial position and income statement) prepared by applying the “shortened” consolidation criterion. In accordance with this criterion, the separate financial statements or accounting data drawn up in accordance with IFRS by EXOR and by the subsidiaries in the “Holdings System” are consolidated line‑by-line; the investments in the operating subsidiaries and associates (CNH Industrial, Fiat, C&W Group, Juventus Football Club, Almacantar and Arenella Immobiliare) are accounted for using the equity method on the basis of their consolidated financial statements or accounting data or separate financial statements (in the case of Juventus Football Club and Arenella Immobiliare) drawn up in accordance with IFRS. 

Such shortened form financial statements, in order to facilitate the analysis of the financial position and cash flows, as well as the results of operations of the Group, are also presented along with the half-year condensed consolidated financial statements and the interim reports at March 31 and September 30 of each year.

Following the retrospective application of the amendment to IAS 19 – Employee benefits from January 1, 2013, the figures previously reported in the income statement for 2012 and in the statement of financial position at January 1, 2012 and December 31, 2012, have been restated for comparative purposes as required by IAS 1.

The effects of the restatements on the statement of financial position and the income statement are attributable to CNH Industrial Group, Fiat Group and C&W Group. Compared to the data reported in the statement of financial position at December 31, 2012, the application of the amendment generated a reduction in equity at January 1, 2012 and at December 31, 2012, respectively, of €467.5 million and €995.6 million. Compared to the data reported in the income statement for 2012 the reduction in profit was €99.9 million (due to the reduction in the share of the profit (loss) of investments accounted for using the equity method).

It should be noted that the data relating to CNH Industrial Group refer to the Group after the merger between Fiat Industrial and CNH Global, completed on September 29, 2013. The merger had no impact on the consolidated activities of the former Fiat Industrial Group and therefore the results presented in the Report on Operations relating to the share of profit (loss) of investments and the value of the investment (measured using the equity method) are consistent and comparable with those previously reported by the EXOR Group. Nevertheless, in the context of this transaction, the stake held in the investment decreased from 30.88% to 27.96% following the entry of the minority shareholders of CNH Global

This reduction had no effect on the measurement criteria for the CNH Industrial Group since de facto control was retained.

As far as the accounting effects of the dilution are concerned, these are represented by a change between the attributable equity of owners of the parent and the non-controlling interests; in particular, there was a net increase in the equity reserves attributable to owners of the parent of approximately €40 million because of the different accounting equity value of the companies participating in the merger as compared with the market values considered for the purpose of the exchange ratios.

Since the merger was completed at the end of the third quarter, the share of the profit recorded in the income statement was calculated on the basis of 30.88% (the pre-merger consolidation percentage) for the first nine months of 2013 and at 27.96% for the fourth quarter of 2013.

The following table shows the consolidation and valuation methods of the investment holdings.

 
% of consolidation
  12/31/2013   12/31/2012
Companies in the Holdings System consolidated line-by-line
   
- Exor S.A.  (Luxembourg) 100   100
- Exor Capital Limited  (Ireland) 100   100
- Exor Inc. (USA) 100   100
- Ancom USA Inc. (USA) 100   100
- Exor N.V. (the Netherlands)  100   -
       

     
Investments in operating subsidiaries and associates, accounted for using the equity method      
- CNH Industrial Group (a) 27.96 (b) 30.88
- Fiat Group 30.90   30.91
- C&W Group (c) 82.40   78.95
- Almacantar Group 38.29   36.29
- Juventus Football Club S.p.A. 63.77   63.77
- Arenella Immobiliare S.r.l.  100   100
(a) Resulting from the merger of Fiat Industrial and CNH Global completed on September 29, 2013. (b) The 2.9% reduction arises from the merger of Fiat Industrial and CNH Global with and in CNH Industrial. (c) The percentage is calculated on issued share capital, net of treasury stock held and net of the estimate of treasury stock purchases from non-controlling interests to be made by C&W Group.
Commercial Register No.64236277 Legal notes | Credits