Net financial position

The net financial position of the Holdings System, determined by applying the shortened consolidation criterion, provides the best presentation of the financial resources and commitments directly attributable to and managed by EXOR.

Using the shortened consolidation criterion adopted by EXOR 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 - Exor Nederland N.V. (the Netherlands), EXOR S.A. (Luxembourg), Exor Investments Limited (United Kingdom), Exor Investment (UK) LLP (United Kingdom), Ancom USA Inc. (USA), Exor SN LLC (USA) - 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 and associates (PartnerRe, Ferrari, CNH Industrial, Juventus Football Club, The Economist Group and Welltec) are included in the consolidated financial statements of the parent company EXOR using the equity method. The financial community is familiar with this information which facilitates analysis of the financial position and results of EXOR.

Nevertheless, such data do not fully represent, nor should be treated as the consolidated financial position of the EXOR Group prepared in accordance with International Financial Reporting Standards (IFRS). In fact, the shortened consolidation method is not contemplated in the reference accounting standards on the presentation of consolidated financial statements and may not be consistent with the method adopted by other groups and, therefore, such data may not be comparable with the data reported by such groups. The consolidated data prepared in shortened form are not audited by the independent auditors.

Set out below are the data relating to the net financial position prepared in shortened consolidation form:

€ million 12/31/2018 12/31/2017 12/31/2016
Financial assets and financial receivables 246 82 88
Cash and cash equivalents 21 24 117
Cash, cash equivalents and financial assets 267 106 205
EXOR bonds (3,236) (2,521) (2,999)
Bank debt (30) (715) (601)
Commercial paper (230) - -
Other financial payables (26) (34) (29)
Gross debt (3,522) (3,270) (3,629)

The reconciliation of the consolidated cash and cash equivalents of EXOR Group with the cash and cash equivalents of the Holdings System is as follow:

€ million 12/31/2018 12/31/2017 12/31/2016
Cash and cash equivalents (1) 19,136 20,028 25,161
(Less) Cash and cash equivalents of the operating subsidiaries accounted for using the equity method in the Holdings System 19,115 20,004 25,044
Financial asset and financial receivables 246 82 88
Cash, cash and cash equivalents and financial asset of the Holdings System 267 106 205
(1) GAAP measure, see page 10.

The reconciliation of the consolidated gross debt of EXOR Group with the gross debt of the Holdings System is as follow:

€ million 12/31/2018 12/31/2017 31/12/2016
Gross debt (1) (43,576) (46,696) (56,817)
(Less) Gross debt of the operating subsidiaries accounted for using the equity method in the Holdings System 40,054 43,426 53,188
Gross debt of the Holdings System (3,522) (3,270) (3,629)
(1) GAAP measure, see page 10.

 

 

 

 

 

 

 

Commercial Register No.64236277 Note legali | Credits