Consolidated net financial position

The consolidated net financial position of the Holdings System at September 30, 2015 is a positive €1,171.2 million and a positive change of €608.7 million compared to the balance at year-end 2014 (€562.5 million). The positive change is mainly due to the sale of C&W Group for proceeds of €1,134.2 million, partially offset by the disbursement of €553.2 million for the purchase of 9.9% of PartnerRe.

The composition of the balance is as follows:

  9/30/2015 12/31/2014 Change
€ million Current Non
current
Total Current Non
current
Total Current Non
current
Total
Financial assets 355.0 76.2 431.2 937.5 76.3 1,013.8 (582.5) (0.1) (582.6)
Financial receivables  50.6 0.0 50.6 1.9 0.0 1.9 48.7 0.0 48.7
Cash and cash equivalents 2,4165 0.0 2,416.5 1,217.3 0.0 1,217.3 1,199.2 0.0 1,199.2
Total financial assets 2,822.1 76.2 2,898.3 2,156.7 76.3 2,233.0 665.4 (0.1) 665.3
EXOR bonds  (41.4) (1,606.4) (1,647.8) (24.9) (1,600.0) (1,624.9) (16.5) (6.4) (22.9)
Financial payables (39.4) 0.0 (39.4) 0.0 0.0 0.0 (39.4) 0.0 (39.4)
Other financial liabilities (39.9) 0.0 (39.9) (45.6) 0.0 (45.6) 5.7 0.0 5.7
Total financial liabilities (120.7) (1,606.4) (1,727.1) (70.5) (1,600.0) (1,670.5) (50.2) (6.4) (56.6)
Consolidated net financial position of the Holdings System 2,701.4 (1,530.2) 1,171.2 2,086.2 (1,523.7) 562.5 615.2 (6.5) 608.7

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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 period end or using the value determined by an independent third party in the case of mutual funds, translated, where appropriate, at the period-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 primarily include the financial income on the FCA N.V. mandatory convertible securities maturing December 15, 2016 of €49.3 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 September 30, 2015 Bonds issued by EXOR are analyzed as follows:

              Nominal
amount
Balance at (a)
Issue
date
Maturity
Date
Issue
Price
        9/30/2015
12/31/2014
Coupon Rate (%)   Currency
(million) (€ million)
6/12/2007
6/12/2017 99.554 Annual fixed 5.375   440.0 (446.5) (452.1)
10/16/2012 10/16/2019
98.136 Annual fixed 4.750    150.0 (155.0) (149.4)
11/12/2013 11/12/2020 99.053 Annual fixed 3.375   200.0 (204.4) (199.2)
10/8/2014 10/8/2024 99.329 Annual fixed 2.50   650.0 (664.3) (652.1)
12/7/2012
1/31/2025 97.844 Annual fixed 5.250   100.0 (101.6) (102.8)
5/9/2011 5/9/2031 100.000 Semiannual
fixed 2.80 (b) Yen 10,000.0 (76.0) (69.3)
                (1,647.8) (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.

Financial payables of €39.4 million refer to the amount due to Almacantar S.A. for the capital subscribed by EXOR S.A. in July 2015 but not yet fully paid in.

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

The net change in the first nine months of 2015 is a positive €608.7 million. Details are as follows:

€ million
      
Consolidated net financial position of the Holdings System at December 31, 2014    562.5  
Dividends from investments
   83.0  
- CNH Industrial 73.4     
- PartnerRe 4.6     
- NoCo A 2.1     
- The Economist Group 1.7     
- Other
1.2     
     
Reimbursements of reserves
   6.4  
- Banca Leonardo 5.5     
- Other
0.9     
     
Sales/Redemptions    1,357.7  
- C&W Group ( al netto degli oneri accessori) 1,134.2     
- Allied World Assurance Company Holdings 153.7     
- The Black Ant Value Fund 19.6     
- Sequana 18.7     
- Other non-current financial assets
31.5     
     
Investiments    (739.8)  
- PartnerRe (553.2)     
- Almacantar (108.6)(a)
 
- Other
      
    . Specialized funds
(68.3)     
    . Other non-current investments
(9.7)     
        
Financial income from Fiat Chrysler Automobiles N.V. - mandatory convertible securities maturing 12/15/2016
   46.7  
        
Dividends paid by EXOR
   (77.8)  
        
Other changes
      
- Net general expenses
   (11.7)  
- Non-recurring other income (expenses) and general expenses
   (15.6)  
- Net financial expenses
   (43.9)  
- Other taxes and duties
   (6.5)  
- Other net changes
   10.2 (b)
Net change during the period    608.7  
Consolidated net financial position of the Holdings System at September 30, 2015    1,171.2  
(a) Of which $47.4 million has already been paid (€66.9 million). (b) Includes primarily the positive measurement of the cross currency swap on the bonds 2011-2031 in Japanese yen for € 5.6 million.

At September 30, 2015 EXOR has unused irrevocable credit lines in Euro of €345 million (due by September 30, 2016) in addition to unused revocable credit lines for more than €558 million.
EXOR also has an irrevocable credit line in foreign currency for a residual amount of $3.5 billion (€3.1 billion), unused at September 30, 2015 and earmarked for the acquisition of PartnerRe. This credit line was partially canceled upon receipt of the proceeds from the sale of C&W Group and is due after June 30, 2016.

EXOR’s long-term and short-term debt rating from Standard & Poor’s is “BBB+” and “A-2”, respectively, with a “negative” outlook. On November 2, 2015 the rating agency published a specific analysis on EXOR.

 

 

Commercial Register No.64236277 Legal notes | Credits