Net financial position

The consolidated net financial position of the Holdings System at September 30, 2016 is a negative balance of €3,512.4 million and a negative change of €4,849.2 million compared to the year-end 2015 positive balance (€1,336.8 million), mainly due to the disbursement made in connection with the acquisition of PartnerRe.

The composition of the balance is as follows:

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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 th

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 refer to the FCA N.V. mandatory convertible securities of €49.7 million maturing December 15, 2016.

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, 2016 bonds issued byEXOR can be analyzed as follows:

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(a) Includes the current portion.
(b) Originally € 250 million: the amount was increased by another €200 million on May 10,2016. The issu price corresponds to weighted average of the prices calculated on the entire amount of €450 million
(c) 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 €605,1 million include the financing drawn down on the remaining credit line secured under the May 11, 2015 Financing Agreement between by EXOR, EXOR Netherland N.V., Citigroup Global Markets Limited and Morgan Stanley Bank for the acquisition of PartnerRe, for a total of $550 million (€492.8 million). In 2015 another credit line of $1,250 million was secured for the acquisition of PartnerRe and fully repaid on April 13, 2016.

Also included are short-term loans secured by EXOR from leading credit institutions for €112.3 million.

Other financial liabilities principally consist of the measurement of cash flow hedge derivative instruments (€23.6 million).

The net negative change in the first nine months of 2016 of €4,849.2 million is detailed in the following table:

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(a) Of which € 16.1 million received on 4,725,726 PartnerRE shares held before the acquisition of control on March 18, 2016
(b) Sale of Rothschild for € 12.1 million and other non-current assets for € 6,9 million
(c) Of which $6,065 million(€ 5,377.7 milioni) paid to common shereholders and $ 43 million (€37.7 million) to preferred shareholders.
(d) Principally includes negative exchange differences on translation for € 131 million

At September 30, 2016 EXOR has irrevocable credit lines in Euro of €390 million, of which €350 million is due after June 30, 2017, as well as revocable credit lines of €558 million.

EXOR also had credit lines in foreign currency for a total of $640 million (€573.4 million) due after September 30, 2017, drawn down for $600 million, of which $550 million (€492.8 million) was granted for the acquisition of PartnerRe.

On October 17, 2016 Standard & Poor’s confirmed the rating for EXOR’s long-term and short-term debt at “BBB+” and “A-2”, with a “negative” outlook”.

Commercial Register No.64236277 Legal notes | Credits