Net financial position

The consolidated net financial position of the Holdings System at September 30, 2013 is a positive €1,290 million and a positive change of €1,815.9 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:

  9/30/2013 12/31/2012
€ million Current Non
current
Total Current Non
current
Total
Financial assets 593.1 109.6 702.7 235.8 110.1 345.9
Financial receivables from Group companies 1.8 0.0 1.8 1.8 0.0 1.8
Financial receivables from third parties 5.6 0.0 5.6 0.0 0.0 0.0
Cash and cash equivalents 1,944.2 0.0 1,944.2 514.4 0.0 514.4
Total financial assets 2,544.7 109.6 2,654.3 752.0 110.1 862.1
EXOR bonds  (24.6) (1,068.2) (1,092.8) (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 (43.0) (200.0) (243.0) (45.2) (200.0) (245.2)
Total financial liabilities (96.1) (1,268.2) (1,364.3) (108.5) (1,279.5) (1,388.0)
Consolidated net financial position of the "Holdings System"2,448.6(1,158.6) 1,290.0643.5(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.

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 secured from 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.

Bonds issued byEXOR are analyzed as follows:

             
Balance at (a)


 
      Nominal
amount
9/30/2013 12/31/2012
Issue
date
Maturity
date
  Issue
price
  Coupon Rate (%) Currency (in millions) (€ million)
6/12/2007 6/12/2017   99.554 Annual fixed 5.375 750.0 (759.6) (769.3)
10/16/2012 10/16/2019   98.136 Annual fixed 4.750 150.0 (154.3) (148.7)
12/7/2012 1/31/2025   97.844 Annual fixed 5.250 100.0 (101.3) (98.1)
5/9/2011 5/9/2031 (b) 100.000 Semiannual fixed 2.80 Yen 10,000.0 (77.6) (88.4)
                (1,092.8) (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. The cost in Euro is equal to 6.012% per year.

Financial payables to associates amount to €28.5 million and refer to the amount due 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.

The positive change in the net financial position of €1,815.9 million is due to the following flows:

€ million     
Consolidated net financial position of the Holdings System at December 31, 2012    (525.9)
Dividends from investment holdings    143.2
- SGS 55.7   
- CNH Industrial  82.6   
- Gruppo Banca Leonardo 2.3   
- The Economist Group 1.2   
- Other 1.4   
Reimbursement of reserves    4.0
- Gruppo Banca Leonardo  3.2   
- Other 0.8   
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    2,069.3
- SGS 2,003.7   
- NoCo B 37.3   
- The Black  Ant Value Fund 16.2   
- Mandatory Convertible Bond Vision 7.4(a)
- Other 4.7   
Dividends paid by EXOR S.p.A.    (78.5)
Other changes     
- Net general expenses (excluding the nominal cost of EXOR stock option plan)    (14.4)
- Non-recurring other income (expenses) and general expenses     (1.7)
- Net financial expenses    (30.4)
- Other taxes and duties    4.2
Other net changes    8.1
Net change during the period    1,815.9
Consolidated net financial position of the Holdings System at September 30, 2013    1,290.0
(a) Of which €3.5 million received on March 8, 2013. (b) Includes interest income and other financial income (+€44.9 million), interest expenses and other financial expenses (-€57.6 million), fair value adjustments of current and non-current financial assets, net of the net gain realized on the redemption of Perella Weinberg Funds for €15.7 million and other income on non-current financial assets (-€2 million) therefore, not included in the net financial position. (c) Includes the refund of the 15% tax withholdings (€9.2 million) on dividends received from SGS in 2011. (d) Include primarily the increase in value of the Interest Rate Swaps on loans for +€13.6 million and the change in non-financial receivables and payables for -€3.8 million

At September 30, 2013, EXOR S.p.A. has irrevocable credit lines for €475 million (drawn for €200 million), of which €425 million is due after September 30, 2014, as well as unused revocable credit lines for over €615 million.
EXOR’s long-term and short-term debt ratings assigned by Standard & Poor's are, respectively, “BBB+” and “A-2” with a stable outlook.

 

Commercial Register No.64236277 Legal notes | Credits