At December 31,
2014 2013
(€ million)
Interest in joint ventures 1,329 1,225
Interest in associates 105 123
Interests in unconsolidated subsidiaries 37 40
Equity method investments 1,471 1,388
Available-for-sale investments 124 148
Equity Investments at fair value — 151
Investments at fair value 124 299
Other Investments measured at cost 59 52
Total Investments 1,654 1,739
Non-current financial receivables 296 257
Other securities and other financial assets 70 56
Total Investments and other financial assets 2,020 2,052
Investments in joint ventures
The Group’s interests in joint ventures, amounting to €1,329 million at December 31, 2014 (€1,225 million at December 31, 2013) are all accounted for using the equity method of accounting and at December 31, 2014 mainly include the Group’s interests in FCA Bank S.p.A. (“FCA Bank”) (formerly known as FGA Capital S.p.A) amounting to €894 million (€839 million at December 31, 2013), the Group’s interest in Tofas-Turk Otomobil Fabrikasi A.S. (“Tofas”) amounting to €299 million (€240 million at December 31, 2013) and the Group’s interest in GAC Fiat Chrysler Automobiles Co.Ltd (previously known as GAC Fiat Automobiles Limited) amounting to €45 million (€85 million at December 31, 2013).
Changes in interests in joint ventures in 2014 and 2013 are as follows:
Investments in joint ventures
(€ million)
Balance at December 31, 2012 1,282
Share of the net profit 112
Acquisitions, Capitalizations (Refunds) 44
Change in the scope of consolidation (37)
Translations differences (69)
Other changes (107)
Balance at December 31, 2013 1,225
Share of the net profit 127
Acquisitions, Capitalizations (Refunds) 14
Change in the scope of consolidation 2
Translations differences 33
Other changes (72)
Balance at December 31, 2014 1,329
In 2014, Other changes consisting of a net decrease of €72 million mainly relates to dividends distributed by FCA Bank for €41 million and by Tofas for €42 million, and to the positive change in the cash flow hedge reserve of Tofas of €13 million.
In 2013, Other changes consisting of a net decrease of €107 million mainly relates to dividends distributed by FCA Bank for €15 million and by Tofas for €72 million, and to the negative change in the cash flow hedge reserve of Tofas of €17 million.
The only material joint venture for the Group is FCA Bank: a 50/50 joint venture with Crédit Agricole Consumer Finance S.A. FCA Bank operates in 14 European countries including Italy, France, Germany, UK and Spain. In July 2013, the Group reached an agreement with Crédit Agricole to extend the term of that joint venture through to December 31, 2021. Under the agreement, FCA Bank will continue to benefit from the financial support of the Crédit Agricole Group while continuing to strengthen its position as an active player in the securitization and debt markets. FCA Bank provides retail and dealer financing and long-term rental services in the automotive sector, directly or through its subsidiaries as a partner of the Group’s car mass-market brands and for Maserati.
Summarized financial information relating to FCA Bank was as follows:
At December 31,
2014 2013
(€ million)
Financial assets 14,604 14,484
Of which: Cash and cash equivalents — —
Other assets 2,330 2,079
Financial liabilities 14,124 13,959
Other liabilities 896 802
Equity (100%) 1,914 1,802
Net assets attributable to owners of the parent 1,899 1,788
Group’s share of net assets 950 894
Elimination of unrealized profits and other adjustments (56) (55)
Carrying amount of interest in the joint venture 894 839
For the years ended December 31,
2014 2013
(€ million)
Interest and similar income 737 752
Interest and similar expenses (373) (381)
Income tax expense (74) (76)
Profit from continuing operations 182 172
Net profit 182 172
Net profit attributable to owners of the parent (A) 181 170
Group’s share of net profit 91 85
Elimination of unrealized profits — —
Group’s share of net profit in the joint venture 91 85
Other comprehensive income/(loss) attributable to owners of the parent (B) 12 (1)
Total comprehensive income attributable to owners of the parent (A+B) 193 169
Tofas, which is registered with the Turkish Capital Market Board (“CMB”) and listed on the Istanbul Stock Exchange (“ISE”) since 1991, is classified as a joint venture as the Group and the other partner each have a shareholding of 37.9 percent. As at December 31, 2014 the fair value of the Group’s interest in Tofas was €1,076 million (€857 million at December 31, 2013).
The aggregate amounts for the Group’s share in all individually immaterial Joint ventures that are accounted for using the equity method were as follows:
For the years ended December 31,
2014 2013 2012
(€ million)
Net Profit from continuing operations 36 27 65
Net profit 36 27 65
Other comprehensive income/(loss) 37 (90) 39
Total other comprehensive income/(loss) 73 (63) 104
There are no restrictions on the ability of joint ventures to transfer funds to the Group in the form of cash dividends, or to repay loans or advances made by the entity, that have a material impact on the Group’s liquidity.
Investments in associates
The Group’s interests in associates, amounting to €105 million at December 31, 2014 (€123 million at December 31, 2013) are all accounted for using the equity method of accounting and include the Group’s interests in RCS
MediaGroup S.p.A. (“RCS”) amounting to €74 million at December 31, 2014 (€87 million at December 31, 2013). As of December 31, 2014 the fair value of the Group’s interest in RCS, which is a company listed on the Italian Stock exchange, was €81 million (€115 million at December 31, 2013).
The aggregate amounts for the Group’s share in all individually immaterial associates accounted for using the equity method, including RCS were as follows:
For the years ended December 31,
2014 2013 2012
(€ million)
Loss from continuing operations (20) (42) (72)
Net loss (20) (42) (72)
Other comprehensive income/(loss) 3 2 (1)
Total other comprehensive loss (17) (40) (73)
There are no restrictions on the ability of associates to transfer funds to the Group in the form of cash dividends, or to repay loans or advances made by the entity, that have a material impact on the Group’s liquidity.
Investments at fair value
At December 31, 2014, Investments at fair value include the investment in CNHI for €107 million (€282 million at December 31, 2013), the investment in Fin. Priv. S.r.l. for €14 million (€14 million at December 31, 2013) and the investment in Assicurazioni Generali S.p.A. for €3 million (€3 million at December 31, 2013).
At January 1, 2011, FCA was allotted 38,568,458 ordinary shares in CNHI’s predecessor, Fiat Industrial S.p.A., without consideration, following the de-merger of Fiat Industrial S.p.A. from Fiat, corresponding to the number of Treasury shares it held. Following this allotment, the portion of the cost of Treasury shares recognized in equity and attributable to the de-merged entity’s shares, amounting to €368 million, was reclassified as an asset in the Consolidated statement of financial position. This initial allocation was calculated on the basis of the weighting of the stock market prices of Fiat and Fiat Industrial S.p.A. shares on the first day of quotation. At the same time, in accordance with IAS 39 and its interpretations, the investment was measured at fair value (€347 million) with a corresponding entry made to Other reserves. In addition, the de-merger of CNHI from Fiat also established that 23,021,250 shares would service the stock option and stock grant plans outstanding at December 31, 2010. These shares were therefore considered linked to the liability for share-based payments recognized by the Group as a result of changes to the plans made by the de-merger and measured at fair value with changes recognized in profit and loss consistently with changes in fair value of the liability. The remaining CNHI shares were classified as Available-for-sale investments and were measured at fair value with changes recognized directly in Other comprehensive income/(loss).