Net financial position

At March 31, 2013 the consolidated net financial position of the Holdings System is a negative €516.1 million, with a positive change of €9.8 million compared with the negative balance of €525.9 million at year-end 2012. The balance is composed as follows:

  3/31/2013 12/31/2012
€ million
Current Non
current
Total Current Non
current
Total
Financial assets 146,0 109,9 255,9 235,8 110,1 345,9
Withholdings receivable on dividends to be received 19,5 0,0 19,5 0,0 0,0 0,0
Financial receivables from Group companies 2,5 0,0 2,5 1,8 0,0 1,8
Financial receivables from third parties
4,0 0,0 4,0 0,0 0,0 0,0
Cash and cash equivalents 596,1 0,0 596,1 514,4 0,0 514,4
Total financial assets 768,1 109,9 878,0 752,0 110,1 862,1
EXOR bonds
(38,5) (1.074,5) (1.113,0) (25,0) (1.079,5) (1.104,5)
Financial payables to associates (36,9) 0,0 (36,9) (38,3) 0,0 (38,3)
Bank debt and other financial liabilities (44,2) (200,0) (244,2) (45,2) (200,0) (245,2)
Total financial liabilities (119,6) (1.274,5) (1.394,1) (108,5) (1.279,5) (1.388,0)
Consolidated net financial position of the "Holdings System" 648,5 (1.164,6) (516,1) 643,5 (1.169,4) (525,9)

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.

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.

Financial receivables from Group companies mainly include the amount of €1.8 million drawn by the subsidiary Arenella Immobiliare S.r.l. on the loan made to it by EXOR in 2012.

Financial receivables from third parties refer to the remaining receivable by EXOR S.A. on the sale of the Mandatory Convertible Bond to Vision Investment Management finalized on March 8, 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 analyzed as follows:

            Nominal amount (in ml.) Balance at (a)
      3/31/201312/31/2012
Issue date Maturity date Issue price Coupon Rate (%) Currency (€ million )
6/12/2007 6/12/2017 99,554 Annual fixed 5,375 750,0 (779,4) (769,3)
10/16/2012 10/16/2019 98,136 Annual fixed 4,750  150,0 (150,5) (148,7)
12/7/2012 1/31/2025 97,844 Annual fixed 5,250 100,0 (98,6) (98,1)
5/9/2011 5/9/2031(b) 100,000 Semiannual fixed 2,80 Yen 10.000,0 (84,5) (88,4)
              (1.113,0) (1.104,5)
(a) Includes the current portion. (b) 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 of 6.012% per year.

Financial payables to associates of €36.9 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 completely paid.

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

The positive change of €9.8 million is due to the following flows:

€ million
     
Consolidated net financial position of the Holdings System at December 31, 2012     (525,9)
Dividends received from SGS     55,7
       
EXOR S.p.A. purchases of treasury stock     (72,9)
-  2,585,000 ordinary shares (1.61% of the class) (56,6)    
-  598,000 preferred shares (0.78% of the class) (12,9)    
- 157,850 savings shares (1.72% of the class) (3,4)    
       
Disposals/Reimbursements     23,6
- The Black  Ant Value Fund, 150,000 shares 16,2    
- Vision Mandatory Convertible Bond 7,4    
 Investments     (2,2)
       
       
Other changes     5,6
- Net general expenses (excluding the nominal cost of  EXOR stock option plan) (4,7)    
- Non-recurring other income (expenses) and general expenses
(0,4)    
- Net financial expenses (5,5) (a)  
- Other taxes and duties (0,7)    
- Other net changes 16,9 (b)  
Net change during the period     9,8
Consolidated net financial position of the Holdings System at March 31, 2013     (516,1)
(a) Includes interest income and other financial income (+€11.5 million), interest expenses and other financial expenses (-€17.3 million), fair value adjustments of current and non-current financial assets (+€0.9 million) net of income on non-current financial assets (-€0.6 million) therefore, not comprised in the balance of the net financial position. (b) Includes mainly the reimbursement of the investment fund for +€12.9 million, the measurement of the interest rate swap on loans for +€5.8 million and the change in non-financial receivables and payables for -€2.3 million.

At March 31, 2013, EXOR S.p.A. has irrevocable credit lines for €530 million, of which €425 million is due after March 31, 2014, as well as revocable credit lines for over €615 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