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) | |||||||
|---|---|---|---|---|---|---|---|---|
| 3/31/2013 | 12/31/2012 | |||||||
| 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) | |||||||
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) |
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.
