Consolidated net financial position

The consolidated net financial position of the Holdings System at June 30, 2015 is a positive €132.8 million and a negative change of €429.7 million from the balance at year-end 2014 (€562.5 million). The composition of the balance is as follows:

  6/30/2015 12/31/2014 Change
€ million Current Non
current
Total Current Non
current
Total Current Non
current
Total
Financial assets 807.6 76.3 883.9 937.5 76.3 1,013.8 (129.9) 0.0 (129.9)
Financial receivables  73.2 0.0 73.2 1.9 0.0 1.9 71.3 0.0 71.3
Cash and cash equivalents 853.7 0.0 853.7 1,217.3 0.0 1,217.3 (363.6) 0.0 (363.6)
Total financial assets 1,734.5 76.3 1,810.8 2,156.7 76.3 2,233.0 (422.2) 0.0 (422.2)
EXOR bonds  (25.3) (1,604.8) (1,630.1) (24.9) (1,600.0) (1,624.9) (0.4) (4.8) (5.2)
Financial payables (10.2) 0.0 (10.2) 0.0 0.0 0.0 (10.2) 0.0 (10.2)
Other financial liabilities (37.7) 0.0 (37.7) (45.6) 0.0 (45.6) 7.9 0.0 7.9
Total financial liabilities (73.2) (1,604.8) (1,678.0) (70.5) (1,600.0) (1,670.5) (2.7) (4.8) (7.5)
Consolidated net financial position of the Holdings System 1,661.3 (1,528.5) 132.8 2,086.2 (1,523.7) 562.5 (424.9) (4.8) (429.7)

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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 has the ability, 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 interim 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.

Current financial receivables mainly include the utilization of €38 million of the loan (originally for €50 million) granted by EXOR to the subsidiary Juventus, due December 31, 2015, in addition to the financial income on the FCA N.V. mandatory convertible securities maturing December 15, 2016 of €33.8 million.

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 June 30, 2015 Bonds issued byEXOR are analyzed as follows:

 
          Nominal amount
Balance at 6/30/2015
(a)
Balance at 12/31/2014
(a)
Issue date
Maturity date
Issue price
Coupon
Rate (%)   Currency
(million)
(€ million)
(€ million)
6/12/2007
6/12/2017
99.554 Annual
fixed 5.375
  440.0 (440.3) (452.1)
10/16/2012
10/16/2019
98.136 Annual
fixed 4.750
  150.0 (153.1) (149.4)
11/12/2013
11/12/2020
99.053 Annual
fixed 3.375
  200.0 (202.7) (199.2)
10/8/2014
10/8/2024
99.329 Annual
fixed 2.50
  650.0 (660.3) (652.1)
12/7/2012
1/31/2025
97.844 Annual
fixed 5.250
  100.0 (100.3) (102.8)
5/9/2011
5/9/2031
100.000 Semiannual
fixed 2.80
(b) Yen 10,000.0 (73.4) (69.3)
                (1,630.1) (1,624.9)
(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.

Other financial liabilities principally consist of the measurement of cash flow hedge derivative instruments.
Financial payables
of €10.2 million refer to amount due Almacantar S.A. for the portion of the share capital increase subscribed by EXOR S.A. in June 2015 but not yet fully paid in.

The net change in the first half of 2015 is a negative €429.7 million. Details are as follows:

€ million
      
Consolidated net financial position of the Holdings System at December 31, 2014  562.5 
Dividends from investments
   77.6  
- CNH Industrial
73.4     
- NoCo A
2.1     
- PartnerRe
1.6     
- Other
0.5   
     
Reimbursements of reserves
   6.4  
- Banca Leonardo
5.5     
- Other
0.9     
     
Sales/Redemptions
  211.6 
- Alled World Assurance Company Hodlings153.7   
- The Black Ant Value Fund19.6   
- Sequana18.7   
- Other non-current financial assets
19.6   
     
Investments
  (637.7) 
- PartnerRe(553.2)   
- Almacantar(21.0)(a)  
- Other:
    
    Specialized funds
(54.6)   
    Other non-current investments
(8.9)   
     
Financial income from Fiat Chrysler Automobiles N.V. - mandatory convertible securities maturing 12/15/2016
   31.4  
     
Dividends paid by EXOR
  (77.8) 
     
Other changes
      
- Net general expenses
   (8.0)  
- Non-recurring other income (expenses) and general expenses
   (9.0)  
- Net financial expenses
   (24.5)  
- Other taxes and duties
   (2.4)  
- Other net changes
   2.7 (b)
Net change during the period    (429.7)  
Consolidated net financial position of the Holdings System at June 30, 2015    132.8  
(a) Of which €10 million has already been paid. (b) Includes primarily the positive measurement of the cross currency swap on the bonds 2011-2031 in Japanese yen for €5.9 million.

At June 30, 2015 EXOR has unused irrevocable credit lines in Euro of €375 million (including €335 million due by June 30, 2016 and €40 million due after June 30, 2016), in addition to unused revocable credit lines for more than €583 million.
EXOR also has an unused irrevocable credit line in foreign currency of $4.8 billion (€4.2 billion) at June 30, 2015 earmarked for the acquisition of PartnerRe. This credit line is due after June 30, 2016 but is expected to be partially cancelled upon the sale of C&W Group.

On April 17, 2015 following the announcement of the offer for the all-cash purchase of PartnerRe, Standard & Poor’s confirmed EXOR long-term and short-term debt rating (respectively at “BBB+” and “A-2”) and revised the outlook from “stable” to “negative”.

Commercial Register No.64236277 Legal notes | Credits