Net financial position

The net financial position of the Holdings System, determined by applying the shortened consolidation criterion, is a representative measure of the financial resources and commitments directly attributable to and managed by EXOR. 

Using the shortened consolidation criterion adopted by EXOR, 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 - Exor Nederland N.V. (the Netherlands), EXOR S.A. (Luxembourg), Exor Investments Limited (United Kingdom), Exor Investment (UK) LLP (United Kingdom), Ancom USA Inc. (USA), Exor SN LLC (USA) - 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 and associates (PartnerRe, Ferrari, CNH Industrial, Juventus Football Club, Exor Seeds, The Economist Group and Welltec) are included in the consolidated financial statements of the parent company EXOR using the equity method. 

The presentation of financial data under the shortened consolidation method facilitates the analysis of the financial position and results of EXOR and it is generally recognized by the financial community, including financial counterparties and rating 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.

Set out below are the data relating to the net financial position prepared in shortened consolidation form:

€ million12/31/201912/31/201812/31/2017
Financial assets and financial receivables36624682
Cash and cash equivalents4232124
Cash, cash equivalents and financial assets789267106
EXOR bonds(3,391)(3,236)(2,521)
Bank debt0(30)(715)
Commercial paper0(230)0
Other financial liabilities(29)(26)(34)
Gross debt(3,420)(3,522)(3,270)

The reconciliation of the consolidated cash and cash equivalents of EXOR Group with the consolidated cash and cash equivalents of the Holdings System is as follows:

€ million12/31/201912/31/201812/31/2017
Cash and cash equivalents(1)22,93519,13620,028
(Less) Cash and cash equivalents of the operating subsidiaries accounted for using the equity method in the Holdings System (22,512)(19,115)(20,004)
Financial assets and financial receivables36624682
Cash, and cash equivalents and financial assets of the Holdings System789267106
(1) GAAP measure.
€ million12/31/201912/31/201812/31/2017
Gross debt(1)(43,499)(43,576)(46,696)
(Less) Gross debt of the operating subsidiaries accounted for using the equity method in the Holdings System40,07940,05443,426
Gross debt of the Holdings System(3,420)(3,522)(3,270)
(1) GAAP measure.
Commercial Register No.64236277 Legal notes | Credits