13. Consolidated net financial position of the Holdings System

The consolidated net financial position of the Holdings System at December 31, 2015 is a positive €1,336.8 million and a positive change of €774.3 million compared to the balance at year-end 2014 (€562.5 million). The positive change is primarily due to the disposals of C&W Group for net proceeds of €1,134.2 million and EXOR treasury stock of €508.5 million, partially offset by the acquisitions of PartnerRe and The Economist Group for outlays of €553.2 million and €398.2 million, respectively. 

The composition of the balance is as follows:

 12.31.201512.31.2014Change
€ million Current Non current Total Current Non current Total Current Non current Total  
Financial assets 32.5 76.2 108.7 937.5 76.3 1,013.8 (905.0) (0.1) (905.1) (a)
Financial receivables 3.4 0.0 3.4 1.9 0.0 1.9 1.5 0.0 1.5  
Cash and cash equivalents 3,922.7 0.0 3,922.7 1,217.3 0.0 1,217.3 2,705.4 0.0 2,705.4  
Total financial assets 3,958.6 76.2 4,034.8 2,156.7 76.3 2,233.0 1,801.9 (0.1) 1,801.8  
EXOR bonds (26.4) (2,598.8) (2,625.2) (24.9) (1,600.0) (1,624.9) (1.5) (998.8) (1,000.3)  
Financial payables (39.6) 0.0 (39.6) 0.0 0.0 0.0 (39.6) 0.0 (39.6)  
Other financial liabilities (33.2) 0.0 (33.2) (45.6) 0.0 (45.6) 12.4 0.0 12.4  
Total financial liabilities (99.2) (2,598.8) (2,698.0) (70.5) (1,600.0) (1,670.5) (28.7) (998.8) (1,027.5)  
Consolidated net financial position of the Holdings System 3,859.4 (2,522.6) 1,336.8 2,086.2 (1,523.7) 562.5 1,773.2 (998.9) 774.3  
(a) The net change reflects the Group’s strategy regarding the management of the securities portfolio and the investment of financial resources.

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 has the ability, 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 interim 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. 

Current financial receivables primarily include the financial income of €2.8 million on the FCA N.V. mandatory convertible securities maturing December 15, 2016.

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. 

At December 31, 2015 Bonds issued byEXOR can be analyzed as follows:

       Balance at (a)
      
Nominal amount12.31.201512.31.2014
Issue dateMaturity dateIssue priceCouponRate (%) Currency(mllion)(€ million)
6/12/2007 6/12/2017 99.554 Annual fixed 5.375   440.0 (452.6) (452.1)
10/16/2012 10/16/20129 98.136 Annual fixed 4.750   150.0 (149.8) (149.4)
11/12/2013 11/12/2020 99.053 Annual fixed 3.375   200.0 (199.4) (199.2)
12/3/2015 12/3/2015/2022 99.499 Annual fixed 2.125   750.0 (744.7) -
10/8/2014 10/8/2024 100.090 Annual fixed 2.50   650.0 (652.2) (652.1)
12/7/2012 1/31/2025 97.844 Annual fixed 5.250   100.0 (102.9) (102.8)
12/22/2015 12/22/2025 98.934 Annual fixed 2.875   250.0 (246.8) -
5/9/2011 5/9/2031 100.000 Semiannual fixed 2.80 (b) Yen 10,000.0 (76.8) (69.3)
                (2,625.2) (1,624.9)
(a) Includes the current portion. (b) 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.

Financial payables of €39.6 million refer to the amount due to Almacantar S.A. for the capital subscribed by EXOR S.A. in July 2015 but not yet fully paid in. 

Other financial liabilities principally consist of the measurement of cash flow hedge derivative instruments.

The net change in the year 2015 is a positive €774.3 million. Details are as follows:

€ million        
Consolidated net financial position of the Holdings System at December 31, 2014     562.5  
         
Dividends from investments     93.6  
 - CNH Industrial 73.4      
- The Economist Group 8.1      
 - PartnerRe 7.7      
 - NoCo A 3.2      
 - Other 1.2      
         
Reimbursements of reserves     6.4  
 - Banca Leonardo 5.5      
 - Other 0.9      
         
Sales/Redemptions     1,877.4  
- C&W Group  (a) 1,134.2      
- EXOR treasury stock (a) 508.5      
- Allied World Assurance Company Holdings 153.7      
- The Black Ant Value Fund 19.6      
- Sequana 18.7      
- Other non-current financial assets 42.7      
         
Investments     (1,142.0)  
- PartnerRe (553.2)      
- The Economist Group (398.2)      
- Almacantar (108.6) (b)    
- Other        
. Specialized funds (62.6)      
. Other non-current investments  (19.4)      
         
Financial income from Fiat Chrysler Automobiles N.V. - mandatory convertible securities maturing 12/15/2016     63.5  
         
Dividends paid by EXOR     (77.8)  
         
Other changes        
- Net general expenses     (17.4)  
- Non-recurring other income (expenses) and general expenses     (24.3)  
- Net financial expenses     (49.9)  
- Income taxes and other taxes and duties     (12.5)  
- Other net changes     57.3 (c)
Net change during the year     774.3  
Consolidated net financial position of the Holdings System at December 31, 2015     1,336.8  
(a) Net of auxiliary expenses. (b) Of which $47.4 million has already been paid (€67 million). (c) Primarily includes the positive effects of the hedge on the U.S. dollar loan (€43.9 million) for the acquisition of PartnerRe, as well as the measurement of the cross currency swap on the 2011-2031 Japanese yen bonds for a positive €6.5 million.

At December 31, 2015 EXOR has unused irrevocable credit lines in Euro of €345 million (including €305 million due by December 31, 2016), in addition to unused revocable credit lines of over €558 million.

EXOR also has an irrevocable credit line in foreign currency for a residual amount of $1.9 billion (€1.7 billion), unused at December 31, 2015 and earmarked for the acquisition of PartnerRe. This credit line, which is due after June 30, 2016, was partially cancelled upon receipt of the proceeds from the sale of C&W Group, the placement of EXOR treasury stock and the issue of two EXOR bonds in the month of December.

EXOR’s long-term and short-term debt rating from Standard & Poor’s is “BBB+” and “A-2”, respectively, with a “negative” outlook. On November 2, 2015 the rating agency published a specific analysis on EXOR.

Commercial Register No.64236277 Legal notes | Credits