Highlights Parent Company

The table below shows the summary of key economic and financial data:

(in millions of euro)12/31/201412/31/2013
Operating income (loss) 28.6 24.3
Financial income/(expenses) (10.0) (3.3)
Net income (loss) from equity investments 192.7 199.2
Tax expenses (46.7) (28.3)
Net income (loss) 258.0 191.9
 
Financial assets 1,439.6 1,536.1
Equity 2,056.2 1,940.0
Net financial (liquidity)/debt position (389.1) (227.1)
 

Income from investments amounted to euro 192.7 million and mainly includes dividends for euro 312.9 million (of which euro 294 million distributed by the subsidiary Pirelli Tyre S.p.A.), the positive effect of euro 13.3 million deriving the replacement of the Prelios Bond (the “Convertendo”) with the Prelios S.p.A. class A and B shares, partially offset by the impairment of equity investments in Prelios S.p.A. and Fenice S.r.l. (euro 85.2 million), in Alitalia S.p.A. for euro 11.2 million, in Pirelli & C. Ambiente S.r.l. for euro 16.2 million.

The change in taxes, positive for euro 74.9 million compared to 2013 is mainly attributable to the benefits deriving from the Italian Group’s tax consolidation and the activation of deferred tax assets on previous tax losses as result of the improvement in the future plans of Italian companies.

The following table summarizes the values of the main financial assets at December 31, 2014:

(in millions of euro)12/31/2014
Equity investments in subsidiaries
- Pirelli Tyre S.p.A. 1,085.8
- Pirelli Ltda - Brasil 9.7
- Pirelli & C. Ambiente S.r.l. -
- Pirelli Labs S.p.A. 4.1
- Pirelli UK Ltd 21.8
- Pirelli Group Reinsurance Company S.A. 6.3
- Pzero Srl 4.9
- Pirelli Servizi Amministrazione e Tesoreria S.p.a. 3.2
- Other 5.3
Total equity investments in subsidiaries 1,141.1
Equity investments in associates and other financial assets
- Eurostazioni S.p.A. 52.9
- Prelios S.p.A. 56.0
- Fenice S.r.l. 16.0
- Mediobanca S.p.A. 106.7
- RCS Mediagroup S.p.A. 21.6
- Fin. Priv. S.r.l. 14.5
- Real Estate Investment Fund - Anastasia 14.8
- Alitalia S.p.A. 5.3
- European Institute of Oncology (Istituto Europeo di Oncologia S.r.l.) 5.4
- Other 5.3
Total equity investments in associates and other financial assets 298.5
Total financial assets 1,439.6

Equity went from euro 1,940.0 million as at December 31, 2013 to euro 2,056.2 million as at December 31, 2014. The change is shown in the following table:

(in millions of euro) 
Equity at 12/31/2013 1,940.0
Net income (loss) 258.0
Dividends paid (156.7)
Gains/(losses) recognised directly in Equity 14.9
Equity at 12/31/2014 2,056.2
 

The following table shows the composition of equity at December 31, 2014 and the comparison with the year ended December 31, 2013.

(in millions of euro)12/31/201412/31/2013
Share capital 1,343.3 1,343.3
Legal reserve 139.2 129.6
Merger reserve 12.4 12.4
IAS reserve 57.5 42.6
Retained earnings 245.8 220.2
Net icome (loss) 258.0 191.9
  2,056.2 1,940.0
 

The net financial position, positive for euro 389.1 million at December 31, 2014 compared to euro 227.1 million at December 31, 2013, was affected chiefly by the following factors:

  • collection of dividends for euro 312.9 million;
  • capital increase in subsidiaries for euro 13 million and investments in other companies for euro 5.3 million;
  • payment of dividends to shareholders for euro 156.7 million.