Economic/financial results
As described above in the APM section, EXOR applies a shortened consolidation criterion to facilitate the analysis of the financial position and results of EXOR.
Using the shortened consolidation criterion, rather than the line-by-line method of consolidation required by law and under IFRS, the data derived from the financial statements or accounting data prepared in accordance with IFRS by EXOR and by the subsidiaries constituting the Holdings System are consolidated in the financial statements of the parent company EXOR using the line-by-line method, while the data derived from the financial statements or accounting data prepared in accordance with IFRS of the operating subsidiaries (PartnerRe, Ferrari, FCA, CNH Industrial, Juventus Football Club and Exor Seeds) and associates (The Economist Group and Welltec) are included in the consolidated financial statements of the parent company EXOR using the equity method.
The consolidated data prepared in shortened form are not audited by the independent auditors.
The following table shows the scope of consolidation under the shortened method:
| Reporting currency | % of consolidation | |||
|---|---|---|---|---|
| 12/31/2018 | 12/31/2017 | |||
| Holding Company | ||||
| - EXOR N.V. (The Netherlands) | € | 100 | 100 | |
| Companies in the Holdings System consolidated line-by-line | ||||
| - Exor Nederland N.V. (The Netherlands) | $ | 100 | 100 | |
| - Exor S.A. (Luxembourg) | € | 100 | 100 | |
| - Ancom USA Inc. (USA) | $ | 100 | 100 | |
| - Exor SN LLC (USA) | $ | 100 | 100 | |
| - Exor Investments Limited (United Kingdom) | £ | 100 | 100 | |
| - Exor Investments (UK) LLP (United Kingdom) | £ | 99.67 | 99.67 | |
| Investments in operating subsidiaries and associates, accounted for using the equity method | ||||
| - PartnerRe | $ | 100 | 100 | |
| - Ferrari | € | 23.98 | 23.65 | |
| - FCA | € | 28.67 | 28.98 | |
| - CNH Industrial | $ | 27.18 | 27.10 | |
| - Juventus Football Club | € | 63.77 | 63.77 | |
| - The Economist Group | £ | 43.40 | 43.40 | |
| - Welltec | $ | 22.12 | 22.12 | |
| - Exor Seeds(a) | $ | 73.11 | - | |
The exchange rates used to translate foreign currencies into Euro are as follows:
| 2019 | 2018 | |||
|---|---|---|---|---|
| Average | 12/31 | Average | 12/31 | |
| U.S. dollar | 1.120 | 1.123 | 1.181 | 1.145 |
| British pound | 0.878 | 0.851 | 0.885 | 0.895 |
EXOR closed the year 2019 with a consolidated profit of €3,053 million; the year 2018 ended with a consolidated profit of €1,347 million. The increase of €1,706 million is mainly attributable to the improvements in the overall performance of the subsidiaries of €1,596 million and includes EXOR’s share of the net gain realized on the disposal of Magneti Marelli by FCA for €1,081 million (total €3.8 billion). Additional details are provided in Note 1.
At 31 December 2019 the consolidated equity attributable to owners of the parent amounts to €15,025 million with a net increase of €2,815 million, compared to €12,210 million at 31 December 2018. Additional details are provided in Note 6.
The consolidated net financial position of the Holdings System at 31 December 2019 is a negative €2,631 million and reflects a positive change of €624 million compared to the negative financial position of €3,255 million at 31 December 2018, mainly due to dividends received from the subsidiaries (€1,179 million), partially offset by investments (€274 million), buyback of EXOR shares (€207 million) and payment of dividends (€100 million). Additional details are provided in Note 7.
The shortened consolidated income statement and statement of financial positionand notes on the most relevant line items are presented below.
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