9. Consolidated net financial position of the Holdings System

The consolidated net financial position of the Holdings System at March 31, 2014 shows a positive balance of €1,297.5 million and a positive change of €16.3 million compared to the balance at year-end 2013 (+€1,281.2 million). The balance is composed as follows:

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 the fair value in the income statement. They also include the current portion of bonds held to maturity.

Non-current financial assets include bonds issued by leading counterparties and listed on active and open markets which the Group intends, and is able, 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 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.

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.

Bonds issued byEXOR are analyzed as follows:

Financial payables to associates amount to €28.7 million and refer to the amount due to Almacantar S.A. for the share of the capital increase subscribed by EXOR S.A. in July 2013, but not yet paid.

Bank debt and other financial liabilities include mainly the measurement of cash flow hedges.

The net positive change in the net financial position in the first quarter of 2014 of €16.3 million is detailed in the following table:

At March 31, 2014 EXOR S.p.A. has unused irrevocable credit lines due after March 31, 2015 for €425 million, and unused revocable credit lines for over €595 million.

EXOR’s long-term and short-term debt is rated by Standard & Poor's respectively at “BBB+” and “A-2”, with a stable outlook.