Consolidated 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:

€ million 06/30/2019 12/31/2018 12/31/2017
Financial assets and financial receivables 299  246 82 
Cash and cash equivalents 493  21 24 
Cash, cash equivalents and financial assets 792  267 106 
EXOR bonds  (3,260) (3,236) (2,521)
Bank debt 0 (30) (715) 
Commercial paper (15) (230) 0
Other financial payables (38) (26) (34)
Gross debt (3,313) (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:

€ million 06/30/2019 06/30/2018 06/30/2017
Cash and cash equivalents (1) 22,540 19,136 20,028
(Less) Cash and cash equivalents of the operating subsidiaries accounted for using the equity method in the Holdings System
(22,047) (19,115) (20,004)
Financial assets and financial receivables 299 246 82
Cash, and cash equivalents and financial assets of the Holdings System(3,260)(3,236)(2,521)

(1) GAAP measure.

The reconciliation of the consolidated gross debt of EXOR Group with the consolidated gross debt of the Holdings System is as follows:

€ million 06/30/2019 12/31/2018 12/31/2017
Gross debt (1) (45,839) (43,576) (46,696)
(Less) Gross debt of the operating subsidiaries accounted for using<br />the equity method in the Holdings System 
42,526 40,054 43,426
Gross debt of the Holdings Sistem(3,313)(3,522)(3,270)

(1) GAAP measure

Share of the profit (loss) of investments accounted for using the equity method

The composition of the share of the profit (loss) of investments accounted for using the equity method is as follows:

€ million Half 2019 Half 2018 Change
PartnerRe6906684
Ferrari 86 73 13
FCA
1,509 (1) 511 998
CNH Industrial153213(60)
Juventus Football Club(30)(40)10
The Economist Club812(4)
Other2(2)4
 2,4187731,645
Adjustement-(1)1
Share of the profit of investments accounted for
using the equity method
2,4187721,646

(1) Including the net gain relating to the disposal of Magneti Marelli of &euro;3.8 billion (EXOR&rsquo;s share &euro;1.1 billion).

The reconciliation of the share of the profit of investments accounted for using the equity method with the profit attributable to owners of the parent is as follows:

 I Half 
€ million20192018Change
Profit attributable to owners of the parent (1)  2,4277411,686
Less:   
- Loss from investments in subsidiaries and associates02(2)
- Net financial income/expenses(17)21(38)
- Net recurring general expenses880
Share of the profit of investments accounted for using
the equity method
2,4187721,646

(1) GAAP measure.

Commercial Register No.64236277 Legal notes | Credits