12. Net financial position of the Holdings System

The net financial position of the Holdings System at December 31, 2016 is a negative €3,424.3 million and shows a negative change of €4,761.1 million compared to the balance at year-end 2015 (€1,336.8 million), mainly due to the disbursement made in connection with the acquisition of PartnerRe.

The composition of the balance is as follows:

€ million 12/31/2016 12/31/2015 Change
Financial assets 87.9 108.7 (20.8)
Financial receivables 0.1 3.4 (3.3)
Cash and cash equivalents 116.5 3,922.7 (3,806.2)
Cash, cash equivalents and financial assets 204.5 4,034.8 (3,830.3)
EXOR bonds (2,999.0) (2,625.2) (373.8)
Financial payables (602.2) (39.6) (562.6)
Other financial liabilities (27.6) (33.2) 5.6
Gross debt (3,628.8) (2,698.0) (930.8)
Net financial position of the Holdings System (3,424.3) 1,336.8 (4,761.1)

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.
  • If held to maturity as an investment for a part of its available cash so that it can receive a constant attractive flow of financial income they 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 December 31, 2016 Bonds issued byEXOR can be analyzed as follows:

       Balance at (a)
      
Nominal amount 12.31.201612.31.2015
Issue dateMaturity dateIssue priceCouponRate (%) Currency(mllion) (€ million)
12-Jun-07 12-Jun-17 99.554 Annual fixed 5.375   440.0   (453.0) (452.6)
16-Oct-12 16-Oct-19 98.136 Annual fixed 4.750   150.0   (150.2) (149.8)
12-Nov-1312-Nov-20 99.053 Annual fixed 3.375   200.0   (199.7) (199.4)
3-Dec-152-Dec-22 99.499 Annual fixed 2.125   750.0   (745.6) (744.7)
8-Oct-148-Oct-24 100.090 Annual fixed 2.50   650.0   (652.4) (652.2)
7-Dec-1231-Jan-25 97.844 Annual fixed 5.250   100.0   (103.1) (102.9)
22-Dec-1522-Dec-25 98.934 Annual fixed 2.875   450.0 (b) (452.1) (246.8)
20-May-1620-May-26 99.650 Annual fixed 4.398   $ 170.0   (161.4) 0.0
9-May-11  9-May-31 100.000 Semiannual fixed 2.800 (c) Yen  10,000.0    (81.5) (76.8)
         (2,999.0)(2,625.2)
(a) Includes the current portion, amounting to €467.4million, of which €453 million concerning a bond expiring on June 12, 2017 (€ 26.4 million at December 31, 2015.) (b) Originally €250 million; the amount was increased by another €200 million on May 10, 2016. The issue price corresponds to the weighted average of the prices calculated on the entire amount of €450 million. (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.

Financial payables of €602.2 million include the financing drawn down on the remaining credit line secured under the May 11, 2015 Financing Agreement between by EXOR, EXOR Nederland N.V., Citigroup Global Markets Limited and Morgan Stanley Bank for the acquisition of PartnerRe, for a total of $550 million (€521.8 million). In 2016 another credit line of $1,250 million was secured for the acquisition of PartnerRe and fully repaid on April 13, 2016.

Also included are short-term loans secured by EXOR from leading credit institutions for €79.3 million.

Other financial liabilities (€27.6 million) consist of the measurement of cash flow hedge derivative instruments.

The net change in the year 2016 is a negative €4,761.1 million. Details are as follows:

€ million   1/1-12/31/2016 1/1-12/31/2015 Change
Net financial position of the Holdings System -Initial amount Note 1,336.8 562.5 774.3
Dividends received from investment holdings 1 336.6 93.6 243.0
Reimbursements of reserves   8.4 6.4 2.0
Sales/Redemptions 2 794.8 1,877.4 (1,082.6)
Investments 3 (5,519.4) (1,142.0) (4,377.4)
Financial income on Fiat Chrysler Automobiles N.V. mandatory convertible securities maturing 12/15/2016   63.2 63.5 (0.3)
Dividends paid by EXOR   (82.0) (77.8) (4.2)
Other changes 4 (362.7) (46.8) (315.9)
Net change during the year   (4,761.1) 774.3 (5,535.4)
Net financial position of the Holdings System -Final amount   (3,424.3) 1,336.8 (4,761.1)
€ million 1/1-12/31/2016 1/1-12/31/2015
1.Dividends received from investment holdings 336.6  93.6 
 PartnerRe 242.0(a) 7.7 
 CNH Industrial 47.7  73.4 
 Ferrari 20.4  - 
 The Economist Group 20.1  8.1 
 Other 6.4  4.4 
2.Sales/Redemptions 794.8  1,877.4 
 Almacantar Group 474.7  - 
 Banijay Holding 60.1  - 
 Arenella Immobiliare 22.0  - 
 The Black Ant Value Fund 18.7  19.6 
 RCS MediaGroup 18.1  - 
 Investment Funds 174.2  - 
 Other Asset 27.0(b) 42.7 
 C&W Group (a) -  1,134.2 
 Treasury stock EXOR(a) -  508.5 
 Allied World Assurance Company Holdings -  153.7 
 Sequana -  18.7 
3.Investments (5,519.4)  (1,142.0) 
 PartnerRe (5,415.5)(c) (553.2) 
 Welltec (103.3)    
 The Economist Group -  (398.2) 
 Almacantar -  (108.6) 
 Investment Funds -  (62.6) 
 Other non current investments (0.6)  (19.4) 
4.Other changes (362.7)  (46.8) 
 Net general expenses (20.4)  (17.4) 
 Non recurring other general expenses (69.4)  (24.3) 
 Net financial expenses (105.4)  (49.9) 
 Income taxes (6.7)  (12.5) 
 Other net changes (160.8)(d) 57.3(d)
(a) Of which €16.1 million received on 4,725,726 PartnerRe shares held before the acquisition of control on March 18, 2016. (b) 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. (d) Principally includes negative exchange differences on translation for €156.7 million.

Credit Lines and rating 

At December 31, 2016 EXOR has irrevocable credit lines in Euro of €390 million, of which €350 million, is due after December 31, 2017, as well as revocable credit lines of €558 million.EXOR also had credit lines in foreign currency for a total of $640 million (€607,2 million) due after December 31, 2017, drawn down for $600 million, of which $550 million (€521,8 million) was granted for the acquisition of PartnerRe.

On December 12, 2016 Standard & Poor’s assigned the rating for EXOR’s long-term and short-term debt at “BBB+” and “A-2”, with a “negative” outlook.

 

 

 

 

Commercial Register No.64236277 Note legali | Credits