Economic/financial results
As described above in the APM section, EXOR applies a shortened consolidation criterion to facilitate the analysis of the financial position and results of EXOR.
Using the shortened consolidation criterion rather than the line-by-line method of consolidation required by law and under IFRS, the data derived from the financial statements or accounting data prepared in accordance with IFRS by EXOR and by the subsidiaries constituting the Holdings System are consolidated in the financial statements of the parent company EXOR using the line-by-line method, while the data derived from the financial statements or accounting data prepared in accordance with IFRS of the operating subsidiaries (PartnerRe, FCA, Ferrari, CNH Industrial, Juventus Football Club) and associates (The Economist Group and Welltec) are included in the consolidated financial statements of the parent company EXOR using the equity method.
The following table shows the shortened consolidation area:
| Reporting currency | % of consolidation | |||
|---|---|---|---|---|
| 12/31/2018 | 12/31/2017 | |||
| Holding Company | € | 100 | 100 | |
| - EXOR N.V. (The Netherlands) | ||||
| Companies in the Holdings System consolidated line-by-line | ||||
| - Exor Nederland N.V. (The Netherlands) | $ | 100 | 100 | |
| - EXOR S.A. (Luxembourg) | € | 100 | 100 | |
| - Ancom USA Inc. (USA) | $ | 100 | 100 | |
| - Exor SN LLC (USA) | $ | 100 | 100 | |
| - Exor Capital DAC (Ireland)(a) | € | - | 100 | |
| - Exor Investments Limited Ltd. (United Kingdom) | £ | 100 | 100 | |
| - Exor Investments (UK) LLP (United Kingdom) | £ | 99.67 | 99.67 | |
| Investments in operating subsidiaries and associates, accounted for using the equity method |
||||
| - PartnerRe | $ | 100 | 100 | |
| - FCA | € | 28.98 | 29.18 | |
| - Ferrari | € | 23.65 | 23.52 | |
| - CNH Industrial | $ | 27.10 | 26.91 | |
| - Juventus Football Club | € | 63.77 | 63.77 | |
| - The Economist Group | £ | 43.40 | 43.40 | |
| - Welltec | $ | 22.12 | 21.24 | |
The principal exchange rates used to translate other currencies into Euro are as follows:
| 2018 | 2017 | |||
|---|---|---|---|---|
| Average | 12/31 | Average | 12/31 | |
| U.S. dollar | 1.181 | 1.145 | 1.130 | 1.199 |
| British pound | 0.885 | 0.895 | 0.877 | 0.888 |
EXOR closed the year 2018 with a consolidated profit of €1,347 million; the year 2017 ended with a consolidated profit of €1,392 million. The decrease of €45 million is attributable to the lower net financial income of €78 million and other negative changes of €32 million, partially offset by the decrease in impairments (€65 million).
The consolidated net financial position of the Holdings System at 31 December 2018 is a negative €3,255 million and reflects a negative change of €91 million compared to the negative financial position of €3,164 million at 31 December 2017. Additional details are provided in Note 8.
At 31 December 2018 the consolidated equity attributable to owners of the parent amounts to €12,210 million with a net increase of €1,405 million compared to €10,805 million at 31 December 2017. Additional details are provided in Note 9.
Following the retrospective adoption on 1 January 2018 of IFRS 9 – Financial Instruments and IFRS 15 –Revenue from Contracts with Customers EXOR recognized the accumulated transitional effects in retained earnings on the date of initial application.
EXOR has not restated consolidated shortened data as a result of the adoption of IFRS 9 and IFRS 15, but has quantified the effects attributable to FCA and CNH Industrial on the statement of financial position. The adoption of the standards generated a net reduction in EXOR’s equity and in investments accounted for using the equity method of €33 million at 1 January 2018. Additional details are provided in Note 6.
The shortened consolidated income statement and statement of financial position and notes on the most relevant line items are presented below.
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