Net financial position

At June 30, 2013 the consolidated net financial position of the Holdings System is a positive €1,388.5 million and an increase of €1,914.4 million compared with the balance at year-end 2012 (-€525.9 million). The balance is composed as follows:

  6/30/2013 12/31/2012
€ million Current  Non Current Total Current Non Current Total
Financial assets 184.7  109.8 294.5 235.8 110.1 345.9
Receivables for withholdings to be collected on dividends 19.3
(a) 0.0 19.3 0.0 0.0 0.0
Financial receivables from Group companies 2.3  0.0 2.3 1.8 0.0 1.8
Financial receivables from third parties 4.2  0.0 4.2 0.0 0.0 0.0
Cash and cash equivalents 2,414.4  0.0 2,414.4 514.4 0.0 514.4
Total financial assets 2,624.9  109.8 2,734.7 752.0 110.1 862.1
EXOR bonds
(10.0)  (1,069.3) (1,079.3) (25.0) (1,079.5) (1,104.5)
Financial payables to associates (22.3)  0.0 (22.3) (38.3) 0.0 (38.3)
Bank debt and other financial liabilities (44.6)  (200.0) (244.6) (45.2) (200.0) (245.2)
Total financial liabilities (76.9)  (1,269.3) (1,346.2) (108.5) (1,279.5) (1,388.0)
Consolidated net financial position of the "Holdings System" 2,548.0  (1,159.5) 1,388.5 643.5 (1,169.4) (525.9)
a) Received in July 2013.

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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.

Non-current financial assets include bonds issued by leading counterparties and listed on active and open markets which the Group intends, and is able, 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 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.

Financial receivables from Group companies mainly include the amount of €1.8 million drawn by the subsidiary Arenella Immobiliare S.r.l. on the loan made to it by EXOR in 2012.

Financial receivables from third parties refer to the remaining receivable by EXOR S.A. on the sale of the Mandatory Convertible Bond to Vision Investment Management finalized on March 8, 2013.

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 since the primary objective is having investments which can readily be converted into cash. The counterparties are chosen according to their creditworthiness and reliability. The change of €1,900 million compared with December 31, 2012 is mainly due to the investment of the liquidity from the sale of SGS.

Bonds issued byEXOR are analyzed as follows:

             Nominal amount
Balance at (a)
               6/30/2013 12/31/2012
Issue date
Maturity date
  Issue price
Coupon Rate(%) Currency (in millions) (€ million)
6/12/2007 6/12/2017  99.554 Annual fixed 5.375 750.0 (749.3) (769.3)
10/16/2012 10/16/2019  98.136 Annual fixed 4.750 150.0 (152.3) (148.7)
12/7/2012 1/31/2025  97.844 Annual fixed 5.250 100.0 (100.0) (98.1)
5/9/2011 5/9/2031(b) 100.000 Semiannual fixed 2.80 Yen 10,000.0 (77.7) (88.4)
               (1,079.3) (1,104.5)
(a) Includes the current portion. (b) To protect itself against currency fluctuations, a hedging transaction was put in place using a cross currency swap as a result of which EXOR pays a fixed rate in Euro of 6.012% per year.

Financial payables to associates of €22.3 million refer to the payable to Almacantar S.A. for the share of the capital increase subscribed by EXOR S.A. in 2011, but not yet entirely paid.

Bank debt and other financial liabilities (non-current and current portion) consist of loans secured from leading banking institutions.

The positive change of €1,914.4 million is due to the following flows:

€ million     
Consolidated net financial position of the Holdings System at December 31. 2012   (525.9) 
Dividends from investment holdings  141.2 
- SGS 55.7   
- Fiat Industrial 82.6   
- Gruppo Banca Leonardo 2.3   
- Other 0.6   
- Gruppo Banca Leonardo (reimbursement of reserves)  3.2 
EXOR S,p,A, purchases of treasury stock  (105.1) 
- ordinary shares (83.3)   
- preferred shares (17.8)   
- savings shares (4.0)   
Sales/Reimbursements 2,030.7 
- SGS 2,003.7   
- The Black  Ant Value Fund 16.2   
- Mandatory Convertible Bond Vision 7.4   
- Other 3.4   
Investments   (67.0) 
Dividends paid by EXOR S,p,A, (78.5) 
Other changes     
- Net general expenses (excluding the nominal cost of  EXOR stock option plan)   (9.5) 
- Non-recurring other income (expenses) and general expenses
- Net financial expenses (21.8) (a)
- Other taxes and duties   (1.8) 
- Other net changes 24.3
Net change during the period 1,914.4 
Consolidated net financial position of the Holdings System at June 30. 2013   1,388.5
(a) Includes interest income and other financial income (+€19.7 million), interest expenses and other financial expenses (-€36.6 million), fair value adjustments of current and non-current financial assets (-€2.8 million) net of income on non-current financial assets (-€2.1 million) therefore, not comprised in the balance of the net financial position. (b) Includes mainly the reimbursement of investment funds for +€12.9 million and the measurement of the interest rate swap on loans for +€11.6 million.

At June 30, 2013, EXOR S.p.A. has irrevocable credit lines for €475 million, of which €425 million is due after June 30, 2014, as well as revocable credit lines for over €615 million.

EXOR’s long-term and short-term debt rating assigned by Standard & Poor's is respectively BBB+ and A-2 with a “stable” outlook.

Commercial Register No.64236277 Note legali | Credits