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 (Ferrari, PartnerRe, FCA, CNH Industrial, Juventus Football Club, GEDI Gruppo Editoriale, Exor Seeds and Shang Xia) 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.

Consolidation of GEDI Gruppo Editoriale

Exor, through its wholly owned subsidiary Giano Holding S.p.A. ("Giano") acquired control of GEDI Gruppo Editoriale S.p.A. ("GEDI") at the end of April 2020, following the acquisition of the stake in GEDI owned by CIR (43.78% of the issued share capital) for a consideration of €102 million at a price of €0.46 per share. Immediately after this first transaction, Giano also acquired GEDI shares from Mercurio S.p.A., Sia Blu S.p.A. and Giacaranda Caracciolo di Melito Falck, at a price of €0.46 per share, for a total consideration of €26 million.

At the completion of this transaction, in accordance with Italian law, Giano launched a mandatory tender offer to acquire all GEDI shares, with the completion of the first phase on 30 June 2020, the sell out phase on 30 July 2020 and the squeeze out phase on 10 August 2020 (with a further investment of €83 million), reaching 100% of the outstanding capital of GEDI. On the same date, Borsa Italiana ordered the delisting of the ordinary shares of GEDI from the Market Telematico Azionario (MTA).

In accordance with the agreements signed among the entities, CIR and Mercurio each acquired from Exor, at the same price as in the mandatory tender offer of €0.46 per share, a stake in Giano corresponding to the 5% in transparency of the issued share capital of GEDI. The total consideration was €23 million.

As envisaged in the tender offer documentation, on 23 December 2020, Giano was merged with and into GEDI and consequently, Giano ceased to exist and Exor held directly the 89.62% of issued share capital of GEDI.

The transaction was accounted for in accordance with IFRS 3, considering the mandatory tender offer as linked to the acquisition of the 43.78% of GEDI’s shares, applying the acquisition method on the basis of the interim financial statements prepared in accordance with IFRS at 30 April 2020 (the acquisition date). The interest previously held by Exor in GEDI (5.99% of share capital) was measured at fair value at the acquisition date.

Exor finalized the process of measuring the fair values assigned to GEDI’s assets and liabilities at the acquisition date and identified a badwill of €18 million, which represents the excess of the net assets of GEDI as of the acquisition date over the consideration paid; such amount was booked as a gain in the income statement.

At 31 December 2020, consistently with the shortened consolidation criterion and according to the method adopted for all investments in operating subsidiaries and associates of the Group, GEDI was accounted for using the equity method on the basis of the consolidated financial information prepared in accordance with IFRS as of that date, while the income statement included the share of the result of GEDI for the period from 1 May 2020 to 31 December 2020.

Consolidation of Shang Xia

At the end of December 2020, following an agreement with Hermès International announced on 9 December 2020, Exor acquired a 77.3% stake in Shang Xia. Exor invested via a reserved capital increase in the holding company Full More Group.

The transaction was accounted for in accordance with IFRS 3, by applying the acquisition method on the basis of the financial statements prepared in accordance with IFRS at 31 December 2020 (the acquisition date).

At 31 December 2020, consistently with the shortened consolidation criterion and according to the method adopted for all investments in operating subsidiaries and associates of the Group, Shang Xia was accounted for using the equity method on the basis of the consolidated financial information prepared in accordance with IFRS as of that date; due to the year-end acquisition date, there was no effect on the income statement.

The carrying value of the investment includes an amount of €76 million corresponding to the excess of the consideration paid over the book value of Shang Xia’s equity as of the acquisition date. The initial accounting is still provisional and the purchase price allocation process has not been completed; as consequence the mentioned difference may therefore be subject to future adjustments and it has been temporarily carried as goodwill.

The following table shows the scope of consolidation under the shortened method:

 Reporting currency% of consolidation
  31/12/202031/12/2019
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   
– Ferrari 24.05  23.98 
– PartnerRe $ 100  100 
– FCA 28.54  28.67 
– CNH Industrial $ 27.10  27.18 
– Juventus Football Club 63.77  63.77 
– GEDI Gruppo Editoriale(a) 89.62  — 
– Shang Xia(b) CNY 77.30  — 
– The Economist Group £ 43.40  43.40 
– Welltec $ 22.12  22.12 
– Exor Seeds $ 76.34  73.11 
(a) At 31 December 2019 GEDI was accounted at fair value through other comprehensive income. The acquisition date is 30 April 2020. (b) Owned through the holding company Full More Group (Hong Kong). The acquisition date is 31 December 2020.

The exchange rates used to translate foreign currencies into Euro are as follows:

 20202019
 Average31/12Average31/12
U.S. dollar 1.142 1.227 1.120 1.123
British pound 0.890 0.899 0.878 0.851
Chinese Renminbi7.8758.023  
Hong Kong dollar8.8599.514  

Exor closed the year 2020 with a consolidated loss of €30 million; the year 2019 ended with a consolidated profit of €3,053 million. The decrease of €3,083 million is mainly attributable to the lower result from the operating subsidiaries, mainly impacted by the significant negative effect of the COVID-19 pandemic, while the 2019 result included Exor’s share of the gain realized on the disposal of Magneti Marelli for €1,081 million (total €3,771 million). Additional details are provided in Note 1. 

At 31 December 2020 the consolidated equity attributable to owners of the parent amounts to €13,090 million with a net decrease of €1,935 million, compared to €15,025 million at 31 December 2019, principally attributable to negative exchange differences on translation. Additional details are provided in Note 7. 

The consolidated net financial position of the Holdings System at 31 December 2020 is a negative €3,251 million and reflects a negative change of €620 million compared to the negative financial position of €2,631 million at 31 December 2019, mainly due to investments (€500 million) and negative cash flow of €100 million. Additional details are provided in Note 8. 

The shortened consolidated income statement and statement of financial position and notes on the most relevant line items are presented below.

Commercial Register No.64236277 Note legali | Credits