Net financial position

At December 31, 2013 the consolidated net financial position of the Holdings System is a positive €1,281.2 million and a positive change of €1,807.1  million compared to the balance at year-end 2012 (-€525.9 million) deriving mainly from the sale of the entire investment in SGS for proceeds of €2,003.7 million. The balance is composed as follows:

 12/31/201312/31/2012
€ million Current Non current Total Current Non current Total
Financial assets 581.7 83.9 665.6 235.8 110.1 345.9
Financial receivables from third parties and Group companies 6.1 0.0 6.1 1.8 0.0 1.8
Cash and cash equivalents 1,900.2 0.0 1,900.2 514.4 0.0 514.4
Total financial assets 2,488.0 83.9 2,571.9 752.0 110.1 862.1
EXOR bonds (28.6) (1,199.9) (1,228.5) (25.0) (1,079.5) (1,104.5)
Financial payables to associates (28.5) 0.0 (28.5) (38.3) 0.0 (38.3)
Bank debt and other financial liabilities (33.7) 0.0 (33.7) (45.2) (200.0) (245.2)
Total financial liabilities (90.8) (1,199.9) (1,290.7) (108.5) (1,279.5) (1,388.0)
Consolidated net financial position of the "Holdings System" 2,397.2 (1,116.0) 1,281.2 643.5 (1,169.4) (525.9)

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NOTE

Current financial assets include bonds issued by leading issuers, listed on active and open markets, and mutual funds. Such financial assets, 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. They also include the current portion of bonds held to maturity.

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.

These 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.

Bonds issued byEXOR are analyzed as follows:



 
      Nominal amount   Balance at 12/31/2013 (a) Balance at  12/31/2012 (a)
Issue date Maturity date   Issue price Coupon Rate (%) Currency (in millions)   (€ million) (€ million)
6/12/2007 6/12/2017   99.554 Annual fixed 5,375 690.0 (b) (708.3) (769.3)
10/16/2012 10/16/2019   98.136 Annual fixed 4,750 150.0   (149.0) (148.7)
11/12/2013 11/12/2020   99.053 Annual fixed 3,375 200.0   (198.9) 0.0
12/7/2012 1/31/2025   97.844 Annual fixed 5,250 100.0   (102.7) (98.1)
5/9/2011 5/9/2031 (c) 100.000 Semiannual fixed 2,80 Yen 10,000.0   (69.6) (88.4)
                  (1,228.5) (1,104.5)
(a) Includes the current portion. (b) The reduction €60 million from the original amount of €750 million is due to the cancellation of a portion of the bonds. (c) To protect itself against currency fluctuations, a hedging transaction was put in place using a cross currency swap as a result of which EXOR pays a fixed rate in Euro of 6.012% per year.

Financial payables to associates of €28.5 million refer to the payable to Almacantar S.A. for the share of the capital increase subscribed by EXOR S.A. in July 2013, but not yet paid.

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

The net positive change of €1,807.1 million in 2013 is described in the following table:

€ million      
Consolidated net financial position of the Holdings System at December 31, 2012     (525,9)
Dividends from investment holdings     146,3
- SGS 55,7    
- CNH Industrial 82,6    
- Gruppo Banca Leonardo 2,3    
- The Economist Group 2,3    
- C&W Group 2,0    
- Other 1,4    
       
Reimbursement of reserves     4,6
- Gruppo Banca Leonardo  3,2    
- Other 1,4    
       
EXOR S.p.A. treasury stock purchases     (105,1)
- ordinary shares (83,3)    
- preferred shares (17,8)    
- savings shares (4,0)    
       
Investments     (182,8)
-  Almacantar (57,9)    
- Other investments in listed companies and investment funds (124,9)    
       
Sales/Redemptions/Reimbursements     2.070,7
- SGS 2.003,7    
- Noco B 38,8    
- The Black  Ant Value Fund 16,2    
- Other 12,0    
       
       
Dividends paid by EXOR S.p.A.     (78,5)
       
Other changes      
- Net general expenses (excluding the nominal cost of  EXOR stock option plan)     (21,3)
- Non-recurring other income (expenses) and general expenses      (3,6)
- Net financial expenses   (a) (b)
(49,0)
- Other taxes and duties   (c)
3,4
- Other net changes   (d)
22,4
Net change during the year     1.807,1
Consolidated net financial position of the Holdings System at December 31, 2013     1.281,2
(a) Includes interest income and other financial income (+€56.4 million), interest expenses and other financial expenses (-€94.4 million), fair value adjustments of current and non-current financial assets (+€7.8 million), net of the net gain realized on the redemption of Perella Weinberg Funds for €16.8 million and income on non-current financial assets (-€2 million), therefore, not included in the balance of the net financial position. (b) Includes non-recurring expenses of €18.2 million (of which €11.7 million relates to the early closing of the interest rate hedge transaction on loans for a total of €200 million and €6.5 million relating to the loss on the cancellation of the EXOR 2007/2017 bonds). (c) Includes the refund of the 15% tax withholdings (€9.2 million) on dividends received from SGS in 2011. (d) Includes primarily the increase in value of the interest rate swaps on loans for +€26.6 million and the change in non-financial receivables and payables for +€1.5 million.

At December 31, 2013 EXOR S.p.A. has undrawn irrevocable credit lines due after December 31, 2014 for €425 million, as well as undrawn revocable credit lines for over €595 million.

EXOR’s long-term and short-term debt rating assigned by Standard & Poor's is respectively ‘BBB+’ and ‘A-2’ with a “stable” outlook.

Commercial Register No.64236277 Legal notes | Credits