Net financial position

At December 31, 2014 the consolidated net financial position of the Holdings System is a positive €563 million, with a decrease of €718.2 million from the balance at year-end 2013 (€1,281.2 million) principally on account of the purchase of mandatory convertible securities issued by FCA (€711.2 million). The balance is composed as follows:

  12/31/2014 12/31/2013 Change
€ million Current Non
current
Total Current Non
current
Total Current Non
current
Total
Financial assets 937.9 76.4 1,014.3 581.7 83.9 665.6 356.2 (7.5) 348.7
Financial receivables  1.9 0.0 1.9 6.1 0.0 6.1 (4.2) 0.0 (4.2)
Cash and cash equivalents 1,217.3 0.0 1,217.3 1,900.2 0.0 1,900.2 (682.9) 0.0 (682.9)
Total financial assets 2,157.1 76.4 2,233.5 2,488.0 83.9 2,571.9 (330.9) (7.5) (338.4)
EXOR bonds  (24.9) (1,600.0) (1,624.9) (28.6) (1,199.9) (1,228.5) 3.7 (400.1) (396.4)
Financial payables to associates 0.0 0.0 0.0 (28.5) 0.0 (28.5) 28.5 0.0 28.5
Other financial liabilities (45.6) 0.0 (45.6) (33.7) 0.0 (33.7) (11.9) 0.0 (11.9)
Total financial liabilities (70.5) (1,600.0) (1,670.5) (90.8) (1,199.9) (1,290.7) 20.3 (400.1) (379.8)
Consolidated net financial position of the Holdings System 2,086.6 (1,523.6) 563.0 2,397.2 (1,116.0) 1,281.2 (310.6) (407.6) (718.2)

Download xls

NOTE

During 2014 a part of cash (€685 million) was used to purchase mutual funds, including €338 million that was redeemed at the end of the year.

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.

At December 31, 2014 the bonds issued by EXOR are described as follows:

             
Balance at (a)


 
      Nominal
amount
12/31/2014 12/31/2013
Issue
date
Maturity
date
  Issue
price
  Coupon Rate (%) Currency (million) (€ million)
6/12/2007 6/12/2017   99.554 Annual fixed 5.375 440.0 (452.1) (708.3)
10/16/2012 10/16/2019   98.136 Annual fixed 4.750  150.0 (149.4) (149.0)
11/12/2013 11/12/2020   99.053 Annual fixed 3.375 200.0 (199.2) (198.9)
10/8/2014 10/8/2024   99.329 Annual fixed 2.50 650.0 (652.1) 0.0
12/7/2012 1/31/2025   97.844 Annual fixed 5.250 100.0 (102.8) (102.7)
5/9/2011 5/9/2031 (b) 100.000 Semiannual fixed 2.80 Yen 10,000.0 (69.3) (69.6)
                (1,624.9) (1,228.5)
(a) Includes the current portion. (b) To protect against currency fluctuations, a hedging transaction was put in place using a cross currency swap. The cost in Euro is fixed at 6.012% per year.

At December 31, 2013 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. This payable was extinguished in full during 2014.

Other financial liabilities principally consist of the measurement of cash flow hedge derivative instruments.

The net negative change of €718.2 million in 2014 is described in the following table:

€ million      
Consolidated net financial position of the Holdings System at December 31, 2013   1,281.2  
Dividends from investment holdings   80.5  
- CNH Industrial 73.4    
- The Economist Group 2.5    
- C&W Group 2.2    
- Banca Leonardo 0.7    
- Other 1.7    
    
Reimbursements of reserves   7.5  
-Banca Leonardo 4.8    
-Other 2.7    
    
Financial income from Fiat Chrysler Automobiles N.V.mandatory convertible
securities maturing 12/15/2016
2.4
   
Investments   (724.0)  
 - Subscription to Fiat Chrysler Automobiles N.V. mandatory convertible securities
maturing 12/15/2016
(711.2)    
 - Subscription to Sequana capital increase, net of partial sale of shares (2.0)    
 Current other financial assets (10.8)    
    
Sales/Redemptions   98.7  
- Noco B 39.4    
- The Black  Ant Value Fund 19.1    
- Alpitour 5.0    
- Other non-current financial assets 35.2    
    
Dividends paid by EXOR   (74.5)  
    
Other changes      
- Net general expenses    (18.0)  
- Non-recurring other income (expenses) and general expenses    (4.7)  
- Net financial expenses   (60.7) (a)
- Other taxes and duties   (0.6)  
- Other net changes   (24.8) (b)
Net change during the year   (718.2)  
Consolidated net financial position of the Holdings System at December 31, 2014   563.0  
(a) Of which €32.5 million refers to expenses relating to the cancellation of EXOR bonds 2007-2017. (b) Includes primarily the negative measurement of the cross currency swap on bonds 2011-2031 in Japanese yen for €11.7 million.

At December 31, 2014 EXOR has unused irrevocable credit lines for €425 million (including €80 million due by December 31, 2015 and €345 million after December 31, 2015), in addition to unused revocable credit lines for more than €595 million.

EXOR’s long-term debt and short-term debt are rated by Standard & Poor's, respectively, at “BBB+” and “A-2”, with a stable outlook.

Commercial Register No.64236277 Legal notes | Credits