Consolidated net financial position

The net financial position of the Holdings System at 30 June 2018 is a negative €3,139.5 million and shows a positive change of €24.2 million compared to the balance at 31 December 2017 (negative €3,163.7 million).

€ million 06/30/2018 12/31/2017 Change
Financial assets 216.4  56.6  159.8 
Financial receivables 35.6  25.7  9.9 
Cash and cash equivalents 88.9  23.4  65.5 
Cash, cash equivalents and financial assets 340.9  105.7  235.2 
EXOR bonds  (3,249.4) (2,521.3) (728.1)
Bank debt (87.0) (714.4) 627.4 
Commercial paper (115.1) - (115.1)
Other financial liabilities (28.9) (33.7) 4.8 
Gross debt (3,480.4) (3,269.4) (211.0)
Net financial position of the Holdings System (3,139.5) (3,163.7) 24.2 

Financial assets include principally a Luxembourg SICAV investment for €163.8 million. The total amount invested in the first half of 2018 is equal to €150 million, while the fair value recognized to profit (loss) is €13.8 million. It is also included a debt security listed on an active market measured at amortized cost for €52.3 million.

Financial receivables includes the loan granted to Almacantar (€27.3 million) and the credit arising from the divestment of Banca Leonardo (€8.3 million), completed in April 2018.

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 to hold investments which can readily be converted into cash.

At 30 June 2018 bonds issued byEXOR can be analyzed as follows:

             Balance at
          Nominal amount  6/30/2018 06/30/2017Change
Issue date Maturity date Issue price  Rate (%)  (million)  (€ million)
16/10/1216/10/19 99.136  fixed 4.750  150.0 (154.4)(150.7) (3.7)
16/11/1312/11/20 99.053  fixed 3.375  200.0 (203.5)(200.0) (3.5)
03/12/1502/12/22 99.499  fixed 2.125  750.0 (754.9)(746.5) (8.4)
03/10/1402/12/22 100.090  fixed 2.500  650.0 (660.7)(652.5) (8.2)
07/12/1231/01/25 97.844  fixed 5.250  100.0 (100.7)(103.3) 2.6
22/12/15 22/12/25 100.779 (a) fixed 2.850  450.0 (a) (458.2)(451.9) (6.3)
22/05/16 20/05/1699.650 fixed 4.398 170.0(b)(145.9)(141.8) (4.1)
18/07/1818/07/28 98.520 fixed 1.750 500.0 (495.0)(495.0)
09/05/1109/05/31 100.000 fixed 2.800(c)10,000.0(d)(78.0)(74.6) (3.4)
15/02/1815/02/38 98.183 fixed 3.125 200.0 (198.1)(198.1)

       (3,249.4)(2,521.3) (728.1)
-Current portion       (47.0)(14.1) (32.9)
-Non-current portion(3,202.4)(2,507.2)(695.2)
(a) Originally €250 million; the amount was increased by another €200 million on 10 May 2016. The issue price corresponds to the weighted average of the prices calculated on the entire amount of €450 million. (b) Nominal value in $ 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. (d) Nominal value in Yen million.

The bank debt decrease of €627.4 million is mainly attributable to the repayment of credit line, of which €247.9 million in foreign currency.

Commercial paper of €115.1 million is the outstanding amount of the €500 million EXOR Euro-Commercial Paper Program established on 15 May 2018.

Other financial liabilities (€28.9 million) mainly consist of the measurement of cash flow hedge derivative instruments.

The net change in the first half of 2018, a positive €24.2 million, can be analyzed as follows:

€ million   I Half 2018 I Half 2017 2017
Net financial position of the Holdings System-Initial amount Note (3,163.7) (3,424.3) (3,424.3)
         
Dividends received from investments 1 122.4  92.7  222.0 
Distribution of reserves of investments   0.0  8.1  8.1 
Sales/Redemptions 2 26.7  356.2  356.9 
Investments 3 (11.2) (11.7) (44.5)
Dividend paid by EXOR    (82.4) (82.1) (82.1)
Other changes 4 (31.3) (167.5) (199.8)
Net change during the period   24.2  195.7  260.6 
Net financial position of the Holdings System - Final amount   (3,139.5) (3,228.6) (3,163.7)
€ million 1/1-06/30/2018 1/1-06/30/2017 1/1-12/31/2017
1. Dividends received from investments 122.4  92.7  222.0 
PartnerRe 39.5  23.0  128.1 
Ferrari 31.5  28.2  28.2 
CNH Industrial 51.4  40.4  40.4 
The Economist Group - - 17.9 
Other - 1.1  7.4 
2. Sales/Redemptions 26.7  356.2  356.9 
Banca Leonardo 26.5    
The Black Ant Value Fund   353.5  353.5 
Investment Funds   2.7  3.4 
Other Asset 0.2 - -
3. Investments (11.2) (11.7) (44.5)
Welltec (4.5) (10.0) (32.5)
GEDI - - (6.8)
Other  (6.7) (1.7) (5.2)
4. Other changes (31.3) (167.5) (199.8)
Net general expenses (5.3) (8.4) (21.5)
Non recurring other general expenses (0.3) (0.5) (6.3)
Net financial expenses (20.6) (52.8) (95.0)
Exit tax payment - (145.7) (145.7)
Translation exchange differences (6.9) 34.5  48.5 
Other net changes 1.8  5.4  20.2 
(a) Including €8.3 million not yet received.

Credit Lines and rating

At 30 June 2018 EXOR has irrevocable credit lines in Euro of €400 million expiring after 30 June 2019, as well as revocable credit lines of €486.8 million.

At the same date EXOR also has credit lines in foreign currency for a total of $90 million (€77.2 million) expiring after 30 June 2019.

The residual irrevocable credit line in foreign currency for the acquisition of PartnerRe ($300 million) was fully repaid in January 2018.

EXOR’s long-term and short-term debt rating from Standard & Poor’s are “BBB+” and “A-2”, respectively, with a “stable outlook”.

 

Commercial Register No.64236277 Legal notes | Credits