8. Net financial position of the Holdings System

The net financial position of the Holdings System at 31 December 2018 is a negative €3,255 million and shows a negative change of €91 million compared to the balance at 31 December 2017 (a negative €3,164 million).

€ million 12/31/2018 12/31/2017 Change
Financial assets 238 56 182
Financial receivables 8 26 (18)
Cash and cash equivalents 21 24 (3)
Cash, cash equivalents and financial assets 267 106 161
EXOR bonds  (3,236) (2,521) (715)
Bank debt (30) (715) 685
Commercial paper (230) - (230)
Other financial liabilities (26) (34) 8
Gross debt (3,522) (3,27) (252)
Net financial position of the Holdings System (3,255) (3,164) (91)

Financial assets include principally financial instrument accounted for at FVTPL and debt securities listed on an active market measured at amortized cost.

Financial receivables include the receivable arising from the divestment of Banca Leonardo (€8 million), completed in April 2018.

Cash and cash equivalents include short-term deposits, 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 2018 bonds issued by EXOR can be analyzed as follows:

       Balance at (a)
      Nominal amount 12.31.201812.31.2017Change
Issue dateMaturity dateIssue price Fixed Rate (%) (mllion) (€ million)
16-Oct-12 16-Oct-19 98.136    4.750   150.0   (151) (151) 0
12-Nov-1312-Nov-20 99.053   3.375   200.0   (200) (200) 0
3-Dec-152-Dec-22 99.499   2.125   750.0   (747) (746) (1)
8-Oct-148-Oct-24 100.090    2.500   650.0   (653) (652) (1)
7-Dec-1231-Jan-25 97.844    5.250   100.0   (103) (103) 0
22-Dec-1522-Dec-25 100.779 (a)  2.875   450.0 (a) (452) (452) 0
20-May-1620-May-26 99.650    4.398   170.0 (b) (149) (142) (7)
09-May-1109-May-3198.500 1.750 500.0 (500)0(500)
9-May-11  9-May-31 100.000   2.800 (b) 10,000.0  (d)  (80) (81.5) (5)
15-Feb-1815-Feb-3898.183 3.125 200.0 (201)0(201)
        (3,236)(2,521)(715)
- Current portion (178)(14)(164)
- Non-current portion (3,058)(2,507)(551)
(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) Nominal value in $, original currency of issuance. (c) 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. (d) Nominal value in Yen

EXOR intends to repay the bonds in cash at maturity using available liquid resources and undrawn credit lines.

EXOR may from time to time buy back bonds on the market also for purposes of their cancellation. Such buybacks, if made, depend upon market conditions, EXOR’s financial situation and other factors which could affect such decisions.

The bank debt decrease of €685 million is mainly attributable to the repayment of credit lines, of which €254 million in foreign currency ($300 million, related to the acquisition of PartnerRe).

At 31 December 2018 the amount of commercial paper outstanding is €230 million compares to a maximum amount of €500 million established by the EXOR Euro-Commercial Paper Program on 15 May 2018.

Other financial liabilities (€26 million) mainly consist of the measurement of cash flow hedge derivative instruments.

The net change during the year 2018, a negative €9e1 million, can be analyzed as follows:

€ million Note  2018 2017 Change
Net financial position of the Holdings System - Initial amount
(3,164) (3,424) 260
Dividends received from investment  1 138 222 (84)
Asset disposals 2 32 357 (325)
Investments   (22) (45) 23
Dividends paid by EXOR    (82) (82) 0
Buyback EXOR treasury stock   (62) - (62)
Other changes 3 (95) (192) 97
Net change during the year   (91) 260 (351)
Net financial position of the Holdings System - Final amount (3,255) (3,164) (91)
€ million 2018 2017
1. Dividends received from investment 138 222
    PartnerRe 41 128
    Ferrari 31 28
    CNH Industrial 51 41
    The Economist Group 15 18
    Other 0 7
2. Asset disposals 32 357
    Banca Leonardo 27 -
    Other Assets 5 -
    The Black Ant Value Fund - 354
    Investment Funds - 3
3. Other changes (95) (192)
    Net recurring general expenses (16) (22)
    Non recurring other expenses (3) (6)
    Net financial expenses (64) (95)
    Exit tax payment 0 (146)
    Translation exchange differences (13) 48
    Other net changes 1 29

At 31 December 2018 EXOR has irrevocable credit lines in Euro of €400 million, of which €250 million expiring after 31 December 2019, as well as revocable credit lines of €487 million.

At the same date EXOR also has credit lines in foreign currency for a total of $90 million (€79 million) of which $50 million (€44 million) expiring after 31 December 2019.

The residual balance of the irrevocable credit line in foreign currency for the acquisition of PartnerRe ($300 million) was fully repaid in January 2018.

EXOR’s long-term and short-term debt ratings from Standard & Poor’s are “BBB+” and “A-2”, respectively, with a “stable outlook”.

Commercial Register No.64236277 Legal notes | Credits