Economic/financial results

The Shortened Consolidation data is prepared by EXOR on the basis of a “shortened” method of consolidation in which the data derived from the IFRS financial statements of EXOR and of the subsidiaries of the Holdings System: (EXOR Nederland N.V.; EXOR S.A.; Ancom USA Inc.; Exor SN LLC; Exor Capital DAC; Exor Investments Limited) are included in the consolidated financial statements of the parent company EXOR using the line-by-line method, while the data derived from the financial statements prepared in accordance with IFRS of the operating subsidiaries and affiliates (PartnerRe, FCA, CNH Industrial, Ferrari, The Economist Group and Juventus Football Club) are consolidated using the equity method.

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 believes that these data and information facilitate analysis of the financial position and results of EXOR; in addition the shortened consolidation method are recognized by the financial community, by financial counterparties and by the ratings agencies.

Nevertheless, such data do not fully represent, nor should be treated as the consolidated financial position of the EXOR Group prepared in accordance with International Financial Reporting Standards (IFRS). In fact the shortened consolidation method is not contemplated in the reference accounting standards on the presentation of consolidated financial statements and may not be consistent with the method adopted by other groups and, therefore, such data may not be comparable with the data reported by such groups. The consolidated data prepared in shortened form are not audited by the independent auditors.

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

The EXOR Group closes the year 2016 with a consolidated profit of €588.6 million; the year 2015 ended with a consolidated profit of €744.5 million. The negative change of €155.9 million is attributable to lower gains on the disposal of investments (€566.7 million, of which €521.3 million relates to the disposal of C&W Group which was classified in profit&loss from discontinued operations), higher income taxes and other taxes and duties (€164.7 million, including Italian Exit tax of € 170 million relating the re-domiciling of EXOR S.p.A. in The Netherlands due to the cross-border merger with and into EXOR N.V.), higher net financial expenses and non-recurring expenses of €65.6 million and €42.4 million respectively, and other net negative changes of €5.8 million, partially offset by the increase in the share of the profit (loss) of investments of €681 million and higher dividends from investments (€8.3 million).

At December 31, 2016 the consolidated equity attributable to owners of the parent amounts to €10,981.8 million and is a net increase of €635.6 million compared to €10,346.2 million at year-end 2015. Additional details are provided in the following Note 11.

The consolidated net financial position of the Holdings System at December 31, 2016 is a negative €3,424.3 million and reflects a negative change of €4,761.1 million compared to the positive balance of €1,336.8 million at year-end 2015. Additional details are provided in the following Note 12.