Consolidated net financial position

The consolidated net financial position of the Holdings System at September 30, 2014 shows a positive balance of €1,324.5 million and a positive change of €43.3 million compared to the balance at year-end 2013 (positive €1,281.2 million). The balance is composed as follows:

 
 9/30/201412/31/2013Change
€ million Current Non current
Total Current Non current TotalCurrentNon
current
Total
Financial assets 877.7
 133.51,011.2
581.7
83.9
665.6
296.049.6345.6
Financial receivables from third parties and Group companies 2.5
0.02.5
6.1
0.0
6.1
(3.6)0.0(3.6)
Cash and cash equivalents 1,598.1
0.0
1,598.1
1,900.2
0.0
1,900.2
(302.1)0.0(302.1)
Total financial assets 2,478.3
133.5
2,611.8
2,488.0
83.9
2,571.9
(9.7)49.639.9
EXOR bonds (29.6) (1204.3)
(1,233.9)
(28.6)
(1,199.9)
(1,228.5)
(1.0)(4.4)(5.4)
Financial payables to associates (12.2) 0.0
(12.2)
(28.5)
0.0
(28.5)
16.30.016.3
Bank debt and other financial liabilities (41.2) 0.0
(41.2)
(33.7)
0.0
(33.7)
(7.5)0.0(7.5)
Total financial liabilities (83.0) (1,204.3)
(1,287.3)
(90.8)
(1,119.9)
(1,290.7)
7.8(4.4)3.4
Consolidated net financial position of the "Holdings System" 2,395.3 (1,070.8)
(1,324.5)
(2,397.2)
(1,116.0)
1,281.2
(1.9)45.243.3

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NOTE

During the first nine months of 2014 part of the liquidity (€300 million) was employed for the purchase of mutual funds.

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 due within 12 months 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 chosen according to their creditworthiness and their reliability since the primary objective is having investments which can readily be converted into cash.

At September 30, 2014 Bonds issued byEXOR are analyzed as follows:

              Nominal
amount
Balance at (a)
Issue
date
Maturity
date
  Issue
price
      9/30/2014 12/31/2013
  Coupon Rate (%) Currency (in millions) (€ million)
6/12/2007 6/12/2017   99.554 Annual fixed 5.375 690.0 (699.5) (708.3)
10/16/2012 10/16/2019   98.136 Annual fixed 4.750 150.0 (154.6) (149.0)
11/12/2013 11/12/2020   99.053 Annual fixed 3.375 200.0 (204.2) (198.9)
12/7/2012 1/31/2025   97.844 Annual fixed 5.250 100.0 (101.5) (102.7)
5/9/2011 5/9/2031 (b) 100.000 Semiannual fixed 2.80 Yen 10,000.0 (74.1) (69.6)
              (1,233.9) (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.

Financial payables to associates amount to €12.2 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. The balance at December 31, 2013 (€28.5 million) in fact was further reduced to the current €12.2 million after payments made in June (€5.9 million) and September 2014 (€12.2 million), excluding differences on translating foreign operations.

Bank debt and other financial liabilities include mainly the measurement of cash flow hedge derivative instruments.

The net positive change in the net financial position of €43.3 million is detailed in the following table:

 
€ million        
Consolidated net financial position of the Holdings System at December 31, 2013     1,281.2  
Dividends from investment holdings     77.2  
- CNH Industrial 73.4      
- The Economist Group 1.4      
- Banca Leonardo 0.7      
- Altri 1.7      
Rimborsi di riserve     6.8  
- Banca Leonardo 4.8      
- Other
2.0      
Subscription to Sequana capital increase, net of partial sale of shares     (7.8)  
Sales/Redemptions     96.4  
- Noco B 38.4      
- The Black  Ant Value Fund 19.1      
- Alpitour 5.0      
- Other non-current financial assets 33.9      
Dividends paid by EXOR     (74.5)  
Other changes        
- Net general expenses
    (12.1)  
- Non-recurring other income (expenses) and general expenses     (4.5)  
- Net financial expenses
    (19.1)  
- Other taxes and duties
    (2.0)  
- Other net changes
    (17.1) (a)
Net change during the period     43.3  
Consolidated net financial position of the Holdings System at September 30, 2014     1,324.5  
(a) Includes primarily the measurement of the cross currency swap on the bonds in Japanese yen for €9.4 million.

At September 30, 2014 EXOR has unused irrevocable credit lines for €425 million (of which €80 million due by September 30, 2015 and €345 million after September 30, 2015), in addition to unused revocable credit lines for over €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