Economic/financial results

EXOR holds its investments and manages its financial resources directly or through certain subsidiaries. These companies, together with the holding company, EXOR, constitute the so-called “Holdings System”.

EXOR presents the interim consolidated financial statements at March 31 and September 30 of each year (statement of financial position and income statement) in shortened form prepared by applying the “shortened” consolidation criteria. In accordance with this criteria, the financial statements or accounting data drawn up in accordance with IFRS by EXOR and by the subsidiaries in the “Holdings System” are consolidated line by-line; the investments in the operating subsidiaries and associates (FCA, CNH Industrial, Almacantar, The Economist Group, Juventus Football Club and Arenella Immobiliare) are accounted for using the equity method on the basis of their financial statements or accounting data drawn up in accordance with IFRS.

The financial statements drawn up using the “shortened” criteria, in order to facilitate the analysis of financial condition and cash flows, as well as the results of operations of the Group, are also presented along with the annual consolidated financial statements and the half-year condensed consolidated financial statements of each year.

Consolidation of The Economist Group

As a result of the acquisition of an additional interest in the share capital of The Economist Group in the third quarter of 2015, EXOR, through the subsidiary EXOR S.A., increased its investment in The Economist Group from 4.72% to 34.72%, becoming the largest shareholder.

Accordingly and consistently with the provisions of IAS 28, beginning December 31, 2015 EXOR recorded The Economist Group in investments accounted for using the equity method.

The 4.72% stake previously held in The Economist Group was recorded in investments available-for-sale and measured at fair value, with recognition in equity; following the change in the measurement method the investment was aligned to the purchase price agreed for the acquisition of the additional interest in share capital of The Economist Group while the accumulated fair value was subsequently reclassified to a specific item of the income statement.

The alignment of The Economist Group to equity was carried out on the basis of the accounting data at September 30, 2015 (the most recent available data of the company). At December 31, 2015 there were no significant variations compared to the period taken into consideration. The carrying amount of the investment includes goodwill represented by the difference between the fair value of the investment and the price paid.

In view of the above, the use of the equity method did not have any effect on the income statement.

The following table shows the consolidation and valuation methods used for the investment holdings:

  % of consolidation
  12/31/2015   12/31/2014
 Holding Company - EXOR  S.p.A. (Italy) 100
  100


 
Companies in the Holdings System consolidated line-by-line   
EXOR S.A.  (Luxembourg) 100   100
Exor Capital Limited  (Ireland) 100   100
Ancom USA Inc. (USA) 100   100
Exor N.V. (Netherlands)  100   100
Exor SN LLC (USA) 100   100
Pillar Ltd. (Bermuda) (a) 100   -
Exor Holding N.V. (Netherlands) (b) 100   -
Exor Inc. (USA) (c) -   100
       
Investments in operating subsidiaries and associates, accounted for using the equity method    
FCA 29.16   29.25
CNH Industrial  27.28   27.42
Almacantar  38.30   38.29
The Economist Group  (d) 34.72   -
Juventus Football Club S.p.A. 63.77   63.77
Arenella Immobiliare S.r.l. 100   100
C&W Group (e) -   83.06
(a) Company incorporated on April 13, 2015 as part of the transaction for the acquisition of PartnerRe. (b) Company incorporated on September 30, 2015. (c) Company in a wind-up. (d) Measured in accordance with IAS 39 up to September 30, 2015. (e) Company sold on September 1, 2015.

The EXOR Group closes the year 2015 with a consolidated profit of €744.5 million; the year 2014 ended with a consolidated profit of €323.1 million. The positive change of €421.4 million can principally be ascribed to the increase in net gains of €632.1 million (of which €521.3 million relates to the sale of C&W Group shown in profit from discontinued operations), partially offset by the decrease in the share of the profit (loss) of investments of €177.6 million.

At December 31, 2015 the consolidated equity attributable to owners of the parent amounts to €10,138.4 million and is a net increase of €2,143.4 million compared to €7,995 million at year-end 2014. Additional details are provided in the following Note 12.

The consolidated net financial position of the Holdings System at December 31, 2015 is a positive €1,336.8 million and reflects an increase of €774.3 million compared to the positive balance of €562.5 million at year-end 2014. Additional details are provided in the following Note 13.

Commercial Register No.64236277 Legal notes | Credits