8. Investments accounted for using the equity method

Details are as follows:

 Carying amount at  
€ million 12.31.2015   12.31.2014   Change  
FCA 4,811.2   4,077.6   733.6  
CNH Industrial 1,589.2   1,615.8   (26.6)  
Almacantar 532.8   281.8   251.0  
The Economist Group 457.5 (a) -   457.5  
Juventus Football Club 47.8   22.7   25.1 (b)
Arenella Immobiliare 26.3   26.1   0.2  
C&W Group (c) -   572.8   (572.8)  
Total 7,464.8   6,596.8   868.0  
(a) The stake held previously was classified under investments measured at fair value. (b) The change arises from the profit for the period January 1 – December 31. (c) Divested on September 1, 2015.

The positive change in EXOR’s investment in FCA is mainly due to the increase in the equity attributable to owners of FCA owing to the sale on the market of 10% of Ferrari common shares in the Ferrari IPO (€255 million), the increase in exchange differences on translating foreign operations (€269.6 million) and the defined benefit plans remeasurement reserve (€139 million) and by the profit for the year before consolidation adjustments (€97.3 million), net of other net negative changes (a total of €27.5 million).

The negative change in EXOR’s investment in CNH Industrial is mainly due to its share of the result of CNH Industrial (-€64.1 million) which includes the charge recorded in 2015 by EXOR and that CNH Industrial will record in 2016 following the investigation conducted by the European Commission (€122.8 million) and to dividends paid (€71.6 million), partially offset by increases in the cash flow hedge reserve (€42.7 million), the defined benefit plans remeasurement reserve (€31.1 million) and the exchange differences on translating foreign operations (€43.6 million).

In October EXOR purchased 27.8% of the share capital of The Economist Group for a net equivalent amount of €398.2 million, raising its interest in the company to 34.72% of capital (20% of voting rights), becoming the largest shareholder.

EXOR thus attained a significant influence over the investee company as defined by IAS 28 and therefore starting from the 2015 financial statements the investment in The Economist Group is accounted for using the equity method.

The previously held 4.72% interest in share capital, classified in investments available-for-sale measured at fair value with recognition of the difference in equity, was adjusted to fair value, €36.64 per share, (for a total of €59.3 million), that is, at the purchase price of the additional shares acquired. Therefore an increase in value of €18.9 million was recognized in equity; following the change in the method of measurement the accumulated fair value of €28.9 million was reclassified to the income statement. The entire investment in The Economist Group was classified in investments accounted for using the equity method and the measurement at December 31, 2015 was made on the basis of the accounting data at September 30, 2015 (the most recent company data available). 

The positive change in EXOR’s investment in Almacantar is mainly the result of share capital increases carried out in the months of June and July 2015 (for a total of €108.6 million), the profit for the year (€130.9 million) and the increase in exchange differences on translating foreign operations (€13.3 million). 

Commercial Register No.64236277 Legal notes | Credits