13 Net financial position of the Holdings System

The net financial position of the Holdings System at 31 December 2017 is a negative €3,163.7 million and shows a positive change of €260.6 million compared to the balance at year-end 2016 (negative €3,424.3 million).

€ million 12/31/2017 12/31/2016 Change
Financial assets 56.6 87.9 (31.3)
Financial receivables from related parties 25.7 0.1 25.6
Cash and cash equivalents 23.4 116.5 (93.1)
Cash, cash equivalents and financial assets 105.7 204.5 (98.8)
EXOR bonds (2,521.3) (2,999.0) 477.7
Financial payables (714.9) (602.2) (112.7)
Other financial liabilities (33.2) (27.6) (5.6)
Gross debt (3,269.4) (3,628.8) 359.4
Net financial position of the Holdings System (3,163.7) (3,424.3) 260.6

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 year-end exchange rates, with recognition of the fair value in the income statement;
  • if held to maturity as an investment for a part of the Group’s available cash such that it can receive a constant attractive flow of financial income are measured at amortized cost. 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. 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 to hold investments which can readily be converted into cash.

At 31 December 2017 bonds issued byEXOR can be analyzed as follows:

        Balance at (a)
       
Nominal amount 12.31.201712.31.2016
Issue dateMaturity dateIssue price CouponRate (%) Currency(mllion) (€ million)
12-Jun-07 12-Jun-17 99.554   Annual fixed 5.375   440.0   0.0 (453.0)
16-Oct-12 16-Oct-19 98.136   Annual fixed 4.750   150.0   (150.7) (150.2)
12-Nov-1312-Nov-20 99.053   Annual fixed 3.375   200.0   (200.0) (199.7)
3-Dec-152-Dec-22 99.499   Annual fixed 2.125   750.0   (746.5) (745.6)
8-Oct-148-Oct-24 100.090   Annual fixed 2.500   650.0   (652.5) (652.4)
7-Dec-1231-Jan-25 97.844   Annual fixed 5.250   100.0   (103.3) (103.1)
22-Dec-1522-Dec-25 100.779 (a) Annual fixed 2.875   450.0 (b) (451.9) (452.1)
20-May-1620-May-26 99.650   Annual fixed 4.398   $ 170.0   (141.8) (161.4)
9-May-11  9-May-31 100.000   Semiannual fixed 2.800 (b) Yen  10,000.0    (74.6) (81.5)
          (2,521.3)(2,999.0)
Current portion (14.1)(467.4)
Non-current portion (2,507.2)(2,531.6)
(a) Originally €250 million; the amount was increased by another €200 million in 10 May 2016. The issue price corresponds to the weighted average of the prices calculated on the entire amount of €450 million. (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 €714.9 million include the financing drawn down on the remaining credit line secured under the 11 May 2015 Financing Agreement between by EXOR, EXOR Nederland, Citigroup Global Markets Limited and Morgan Stanley Bank for the acquisition of PartnerRe, for a total of $300 million (€ 250.1 million).

There are also included short-term loans secured by EXOR from leading credit institutions for €464 million.

Other financial liabilities (€33.2 million) consist of the measurement of cash flow hedge derivative instruments.

The net change in 2017 is a positive €260.6 million.

€ million   2017 2016 Change
Net financial position of the Holdings System - Initial amount Note (3,424.3) 1,336.8 (4,761.1)
Dividends received from investment holdings 1 222.0 336.6 (114.6)
Reimbursement of reserves   8.1 8.4 (0.3)
Sales/Redemptions 2 356.9 794.8 (437.9)
Investments 3 (44.5) (5,519.4) 5,474.9
Financial income on Fiat Chrysler Automobiles N.V. mandatory        
convertible securities maturing 15 December 2016     63.2 (63.2)
Dividends paid by EXOR   (82.1) (82.0) (0.1)
Other changes 4 (199.8) (362.7) 162.9
Net change during the year   260.6 (4,761.1) 5,021.7
Net financial position of the Holdings System - Final amount  (3,163.7) (3,424.3) 260.6
€ million 1/1-12/31/2017 1/1-12/31/2016  
1. Dividends received from investment holdings 222.0 336.6  
       
PartnerRe 128.1 242.0 (a)
CNH Industrial 40.4 47.7  
Ferrari 28.2 20.4  
The Economist Group 17.9 20.1  
Other 7.4 6.4  
       
2. Sales/Redemptions 356.9 794.8  
The Black Ant Value Fund 353.5 18.7  
Investment Funds 3.4 174.2  
Almacantar Group - 474.7  
Banijay Holding - 60.1  
Arenella Immobiliare - 22.0  
RCS MediaGroup - 18.1  
Other Assets - 27.0 (b)
       
3. Investments (44.5) (5,519.4)  
Welltec (32.5) (103.3)  
GEDI (6.8) -  
PartnerRe - (5,415.5) (c)
Other (5.2) (0.6)  
       
4. Other changes (199.8) (362.7)  
Net general expenses (21.5) (20.4)  
Non recurring other general expenses (6.3) (69.4)  
Net financial expenses (95.0) (105.4)  
Exit tax payment (145.7) -  
Translation exchange differences 48.5 (156.7)  
Other net changes 20.2 (10.8)  
(a) Of which €16.1 million received on 4,725,726 PartnerRe shares held before the acquisition of control on 18 March 2016. (b) Included sale of Rothschild shares for €20.1 million and other non-current assets for €6.9 million. (c) Of which $6,065 million (€5,377.7 million) paid to common shareholders and $43 million (€37.7 million) to preferred shareholders of PartnerRe.

Credit Lines and rating 

At 31 December 2017 EXOR has irrevocable credit lines in Euro of €350 million due after 31 December 2018, as well as revocable credit lines of €571.8 million.

At the same date EXOR also has credit lines in foreign currency for a total of $390 million (€325.2 million) of which $90 million (€75 million) due after 31 December 2018.

On 28 April 2017 Standard & Poor’s affirmed the rating for EXOR’s long-term and short-term debt at “BBB+” and “A-2” and improved the outlook to “stable” from “negative”.

 

 

 

 

Commercial Register No.64236277 Legal notes | Credits