Consolidated net financial position

The net financial position of the Holdings System, determined by applying the shortened consolidation criterion, is a representative measure 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, GEDI, Exor Seeds, The Economist Group and Welltec) are included in the consolidated financial statements of the parent company EXOR using the equity method.

The presentation of financial data under the shortened consolidation method facilitates the analysis of the financial position and results of EXOR and it is generally recognized by the financial community, including financial counterparties and rating agencies.

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 06/30/2020 12/31/2019
Financial assets and financial receivables 325 366
Cash and cash equivalents 1,045 423
Cash, cash equivalents and financial assets 1,370 789
EXOR bonds (4,083) (3,391)
Bank debt (335) -
Other financial liabilities (33) (29)
Gross debt (4,451) (3,420)

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

€ million 06/30/2020 12/31/2019
Cash and cash equivalents(a) 22,594 22,935
(Less) Cash and cash equivalents of the operating subsidiaries accounted for using the equity method in the Holdings System  (21,549) (22,512)
Financial assets and financial receivables 325 366
Cash, and cash equivalents and financial assets of the Holdings System 1,370 789
(a) GAAP measure.

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

€ million 06/30/2020 12/31/2019
Gross debt(a) (52,770) (43,499)
(Less) Gross debt of the operating subsidiaries accounted for using the equity method in the Holdings System 48,319 40,079
Gross debt of the Holdings System (4,451) (3,420)
(a) GAAP measure

Share of the profit (loss) of investments accounted for using the equity method

The composition of the share of the (loss) profit of investments accounted for using the equity method is as follows:

€ million I Half 2020 I Half 2019 Change
PartnerRe (185) 690 (875)
Ferrari 42 86 (44)
FCA(a) (781) 1,509 (2,290)
CNH Industrial (324) 153 (477)
Juventus Football Club (12) (30) 18
The Economist Group 7 8 (1)
GEDI(b) (11) - (11)
Other 3 2 1
  (1,261) 2,418 (3,679)
Adjustments 0 (1) 1
Share of the (loss) profit of investments accounted for using the equity method (1,261) 2,417 (3,678)
(a) In the first half of 2019 included the net gain relating to the disposal of Magneti Marelli of €3.8 billion (EXOR’s share €1.1 billion). (b) In the first half of 2019 the investment was accounted at fair value through other comprehensive income.

The reconciliation of the share of the loss/(profit) of investments accounted for using the equity method with the (loss) profit attributable to owners of the parent is as follows:

€ million I Half 2020 I Half 2019 Change
(Loss) profit attributable to owners of the parent(a) (1,318) 2,427 (3,745)
Less:      
 - Net financial income/expenses 87 (17) 104
 - Net recurring general expenses 8 7 1
 - Net non-recurring other income/expenses (38) 0 (38)
Share of the (loss) profit of investments accounted for using the equity method (1,261) 2,417 (3,678)

 

 

Commercial Register No.64236277 Note legali | Credits